Niger Delta Development Commission Levy

Niger Delta Development Commission Levy

The Niger Delta Development Commission Act requires oil producing companies operating in Nigeria to pay an annual contribution of 3% of their total annual budget to the Commission. The contribution will qualify as allowable deduction for PPT purpose.

Cabotage Act and Nigeria Maritime Administration Safety Agency Act (NIMASA).

The Coastal and Inland Shipping (Cabotage) Act, No. 5 of 2003 regulates cabotage vessels operating within Nigerian inland waters, coastal waters, Exclusive Economic Zone and Islands within Nigeria. The fee to be paid into the fund shall be 2% of the contract sum performed by any vessels engaged in coastal trade. Coastal Trade is defined as carriage of goods by vessels or other mode of transportation from one place in Nigeria, or above Nigerian waters, to any other place in Nigeria or above Nigerian waters, either directly or via a place outside Nigeria. ‘Carriage of goods’ is defined to include the carriage of goods in relation to the exploration, exploitation or transportation of the mineral or non-living natural resources in Nigeria.

The Minister of Transport has power to grant approvals and waivers under the Cabotage Act, and to issue guidelines on the administration of the Act. He may grant a waiver to a duly registered foreign vessel, where he is satisfied that there are no credible Nigerian alternatives. The Minister’s powers may be delegated to appropriate officers of the Nige rian Maritime Authority (NMA). The NIMASA Act applies to ships and crafts registered in Nigeria, flying a foreign flag in the exclusive economic zone, territorial and inland seas, inland waterways and in the ports of Nigeria. NIMASA operates a 3% levy on inbound freights and a 2% levy on outbound freights.