NIMASA Advocates For Replacement Of FOB With CIF
By Elizabeth Uwandu
The Nigerian Maritime Administration and Safety Agency, NIMASA has initiated a plan to replace the ‘Free On Board’, FOB trading terms with ‘Carriage, Insurance and Freight’, CIF trading term.
According to the information gathered by Orient Energy Review revealed that the services which came with the CIF terms of trade were going to be more beneficial to Nigerians as it was going to cover the insurance of the goods, also, the transportation and logistics side of it will be for the benefits of Nigerians as against the FOB where cargoes are been sold at the point of extraction without further benefits.
Speaking on this, the Director, Maritime Labour Services, NIMASA, Ibrahim Jibrin, affirmed that the Agency is fighting seriously to change that clause which is already on the table of the Vice President, Prof. Yemi Osibanjo, as it is the only way to bring back confidence in freight business.
“We have policies that we have put in place especially on the issue of unfavourable trade act that is in existence today. It is disheartening for us to see that our goods are charged under free onboard trading terms.
“What this implies is that whatever cargo you have, you sell it at the point of extraction, if it is hydrocarbon, at the source of extraction you sell it and that is all. You are done with that business. We think this is shortchanging Nigerians and we have started with the initiatives already to see how this can be achieved.
“But we are now advocating, and have already appealed to the federal government which is in the office of the vice president right now. We are advocating that instead of FOB, our trade terms should change to Carriage, Insurance and Freight, CIF”.
On the issue of cabotage act, Jibrin pointed out that efforts have been put in place with a 5-year succession plan that will increase about 75% per cent of Nigerians in the cabotage regime to cover the percentage lacuna already in existence.
Recall that Coastal and Inland Shipping (Cabotage) Act established in 2003, was basically created to protect the commercial transportation of goods and services within
“There is no meaningful compliance in the cabotage law since its inception in one and half decade but proactively NIMASA has come up with a strategy now and we have given a five-year succession plan in such a manner that in the next five years we expect that addition in number or percentage in the gap that exists now about 75% to be closed up and in that regard we will start seeing more of our indigenous people participating in the cabotage regime.”
Nigerian coastal and inland waters to vessels flying the Nigerian flag and legally owned by citizens of Nigerian background.