… Onyung says NNPC will pay UNIBROS over $100m, for jobs Nigerians can do and pay taxes!***
The Ship Owners Association of Nigeria (SOAN) has protested NNPC’s continued breach of the nation’s law on local content, particularly it’s failure to create commercial opportunities as an enabler, towards the enhancement of in-country capacity in the downstream petroleum supply chain.
The protest became necessary, following several letters written and meetings the Shipowners have held with the NNPC Management, including a strategic, tripartite one held with the Senate Joint Committee on downstream, Local Content and Legislative Compliance; the goals of which Melee Kyari allegedly frustrated.
The SOAN, in its protest letter signed by the group’s Arrowhead, Dr. MkGeorge Onyung, Specifically called attention to what the country would have benefited in terms of a more buoyant economy and employment opportunities, if Melee Kyari had been favourably disposed to obeying the law of the land, and collaborating with SOAN.
“SOAN believes that a genuine collaborative synergy with NNPC will unlock the economic prosperity of Nigerians in line with the policies of this administration which includes but not limited, to job creation for our teaming youth and preservation of scarce foreign exchange. It is a truism that shipping is 90% of global trade and without shipping, there is no global economy”, Dr. MkGeorge Onyung highlighted in the letter, calling attention to a December 9th, 2020 letter.
“Recall that we have held multiple levels of dialogue on the above-mentioned subject with your top management and Senate Joint Committee on downstream, Local Content and Legislative Compliance.
“In line with the laws of the Federal Republic of Nigeria, it is crystal clear that the NNPC is empowered statutorily to create commercial opportunities as an enabler towards the enhancement of in-country capacity in the downstream petroleum supply chain as it has successfully done in the upstream sector of the Nigeria oils and Gas-industry
“It is on public record that you pledged to support the indigenous shipping development and tonnage capacity growth in line with the Nigerian Content (NOSICD)Act in order to reverse a nearly 60-year trend of foreign ships’ domination of our maritime industry”, Dr. Onyung further observed, and wondered why Kyari betrayed the huge trust and confidence the nation’s Shipowners reposed in him.
“But, to our greatest disappointment and the total dismay of Nigerians at large, NNPC has proceeded to award the Coastal aid Bunkering Vessels Service contract to a foreign shipping company. Messrs UNIBROS with Eleven (11) foreign-flagged coastal tanker Vessels, in total breach and impetuous disregard for Nigeria Content laws, the Coastal and Inland Shipping (Cabotage) Act and the Presidential Executive Order No5 to the exclusion of Nigerian Shipowners and operators
“The SHIP OWNERS ASSOCIATION OF NIGERIA (SOAN) hereby registers our protest to this show of bad faith and lack of patriotism displayed by NNPC under your leadership, despite the fact that Nigerian shipowners and operator have demonstrable capacity to operate this contract exclusively, and have expressed willingness to accept freight payment in Naira whereas UNIBROS will only accept US Dollar paymant resulting in further drain on our extremely scarce foreign exchange resources.
“We point out to you Sir, that this contract award will result in amplification of capital flight, valued in excess of $100M annually to the detriment of our economy.
“In addition, no Customs import duty has been paid for any of the 11 vessels in question, again in breach of our Nation’s fiscal and monetary policlies.
“Nigerian owned, operated and Nigerian flagged vessels are made to pay full Customs duty and appropriate taxes on earnings, which foreign shipping companies have continually illegally evaded.
“Also note that no Seafearer training or local content strategy plan whatsoever is in place in line with the NOGICD laws. In terms of Capacity Building, neither UNIBROS nor any foreign shipowner or shipping company is made to comply with the major pre-qualification requirements for consideration in the Coastal and Bunkering Vessels Service tender process, this being the submission and approval by NCDMB of:
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‘Nigerian Content plan that demonstrates full utilization of Nigerian labour and services with detailed description of role, work scope and man-hour: in order to achieve minimum target as set out in the requirements of the NOGICD Act 2010’
“We therefore implore you to use your good office to reverse and cancel this contract which was not subject to public tender in line with our public procurement procedure:
“We are delighted to inform you that S0AN members are standing by, with Medium Range (MR), Long-range (LR), and Handy-size tanker Vessels, to meet your coastal and import shipping requirements, within short notice, subject to bankable contract terms and conditions”, the SOAN President stressed further.
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