Nigeria Slaps Environmental Levy On Shipping

by Lorys Charalambous, Tax-News.com, Cyprus

20 September 2012

A new levy on all vessels calling at Nigerian ports came into force on September 1, 2012, the Nigeria Maritime Administration and Safety Agency (NIMASA) has confirmed.

The levy, legislated for under the Marine Environment Management (Sea Protection Levy) Regulation 2012, imposes a progressive levy based on the gross tonnage (GT) of foreign-flagged vessels. Foreign vessels are subject to a rate of USD0.10/GT for vessels of up to 1,000GT, a rate of USD0.15/GT for vessels up to 10,000GT, USD0.20/GT for vessels up to 100,000GT, or USD0.30/GT beyond this threshold.

Nigerian-flagged vessels will pay an annual levy, of NGN500/GT (USD3.17/GT) for vessels up to 1,000GT, NGN350/GT for vessels up to 10,000GT, NGN300/GT for vessels up to 100,000GT, or NGN250/GT for vessels above 100,000GT. Vessels with a gross tonnage of less than 100 will be exempt from the levy.

According to the regulations, the tax is being imposed as part of the nation's efforts to ensure safer shipping and cleaner oceans, pursuant to the NIMASA's mandate on the prevention, control and management of ship source pollution in the nation's maritime domain.

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