The Nigerian Senate on Tuesday asked the Nigerian National Petroleum Corporation, NNPC, to initiate the processes of patronising and boosting the capacities of Indigenous shipping firms.
This was made known when the Senate Committee on local content met with the NNPC management and Ship Owners Association of Nigeria.
The association disclosed that the overwhelming preference to foreign firms had resulted in huge revenue losses including some $120 million loss to demurrage.
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Members of the committee decried the disregard of the local content act which stipulated among others that local firms be encouraged in the conduct of businesses of any public company businesses.
The ship owners association further revealed that foreign ship owners account for 95% of freight spending associated with this downstream activity which is repatriated overseas as capital flight to the detriment of the local economy.
(Editor: Nkoli Omhoudu)
