Muda Yusuf Calls for Review of NIPC Act to Restrict Foreign Investors from Unlimited Access into Freight Forwarding Business, Others

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• Draws FG attention to President Trump insisting on protecting American interest first..
By Onyinye Apeh
Worried about the growing incursion of foreign companies into some maritime businesses, including freight forwarding, the federal government was on Wednesday told to review the Nigerian Investment Promotion Commission (NIPC) Act to restrict foreign investors from having unlimited access into business operations where there is enough indigenous capacity.
This position was canvassed by the Chief Executive Officer, Centre for the Promotion of Private , Dr, Muda Yusuf and welcomed by stakeholders who attended a Maritime Summit titled: ‘Port Reforms and Local Content’ held at Rockview Hotel Apapa, Lagos, organized by Port News on Wednesday.
Yusuf who noted that the NIPC Act which gives foreign investors
unlimited access to all sectors of the economy needs to be revisited urgently to protect domestic indigenous investors in sectors where the country has capacity especially in the maritime
sector.
Pointing out that capacity grows with opportunity, he argued that there is the need to
give indigenous players more opportunities to grow.
He reminded the government that the current trend is that “globally now, many countries are protecting indigenous jobs”.
“A good example is the United States of America, which is reputed to be a model of free enterprise economy. The protectionism would get more intense under the Trump presidency”, he said.
He added that the President-elect of the USA, Mr Donald Trump, has often made it clear that his administration will first protect American interest first.
Yusuf also pointed out that it is regrettable that the Cabotage Act which was enacted in 2003[21 years ago] to help develop the local shipping industry
has not been effectively implemented.
“The law establishes that
no foreign vessels ought to do business in Nigerian waters other than indigenous ships, while offering the local shipping lines the right of first refusal.
“The Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigeria National Petroleum Corporation (NNPC), need to step up on this matter in national interest. Not much has also happened with regards to the Cabotage fund disbursement to indigenous shipping companies. Ordinarily,
this should be a low hanging fruit in promoting inclusion in the maritime sector.
Similarly, he called on the need to expand the scope of presidential executive orders to “promote the patronage of made in Nigeria products and the hiring of local expertise and skills”.
According to him, “ There could be similar executive orders to protect indigenous jobs in the maritime sector. Replicating the Local Content law of the oil and gas sector in the maritime sector.
“This law has had an incredible impact on indigenous capacity in the oil and gas sector. this model should be replicated in the maritime sector. if it can work in the oil and gas sector, it would work in the maritime sector”.
The Publisher of Port News, Mr Wale Oni, whose company organized the event, in his welcome address, expressed concern over a situation in which foreign companies have simply made Nigerian operators spectators in their own business environment.
Oni said, “why have the terminal operators and foreigners seemingly ganged up against Nigerian bonded terminal operators by denying them container transfers/perhaps , there is a technical or operational deficiency, some very difficult, rocket science puzzle that sets us behind and which our expatriate counterparts need to teach us.
Nigerian operators have lost the plot, they are mere onlookers. What can we do to correct these anomalies? How do we introduce and sustain a mutually beneficial working relationship between terminal operators and the concessionaires of our huge port terminals with cargoes”.