Seafarers seek tax exemption, clarity ahead of 2026

Seafarers. Photo: BULK

As Nigeria prepares for the implementation of a new tax regime in 2026, stakeholders in the maritime sector have called for special considerations for seafarers, warning that without targeted safeguards, the reform could unfairly burden a workforce whose duties and working conditions differ significantly from those of other professionals.

They made the call at the Merchant Seafarers Association of Nigeria and USA Sailors Night and Awards held in Apapa, Lagos.

Secretary-General of the Merchant Seafarers Association of Nigeria and USA, Prof. Alfred Oniye, said the incoming tax framework presents both opportunities and challenges for Nigerian seafarers, stressing that fairness must be central to its application.

According to him, the nature of seafaring, which often involves long periods outside the country and employment in international waters, requires policies aligned with global best practices.

“The key lies in ensuring fair taxation policies that recognise the unique nature of our work,” Oniye said.

He explained that the association is advocating tax exemptions or rebates for seafarers working internationally, as well as clear guidelines on tax residency for those who spend significant time at sea.

He also called for the inclusion of seafarers in national social protection schemes such as pensions and health insurance, without exposing them to double taxation.

Oniye said the association is already engaging the Federal Government to ensure that the new regime supports, rather than weakens, the economic empowerment of seafarers.

“Our association is actively engaging with the Federal Government to ensure that seafarers are not unfairly burdened,” he said, adding that clarity and equity would be critical as the reforms take effect.

Echoing similar concerns, Managing Director and Founder of Izonibe Oil and Gas Marine Limited, Douglas Zakana, urged the government to review how the tax reforms apply to seafarers, especially in light of ongoing debates about the final content of the law now in the public domain.

He argued that seafarers perform essential national duties and deserve special consideration comparable to that granted to members of the armed forces.

“This is a law that has been enacted, but there are arguments that what people are seeing rolled out to the public is not what was actually signed. I think they should go back and review. The same way they do not take taxes from the armed forces, we also do an essential duty,” Zakana said.

Zakana noted that although seafarers are not deployed to war fronts, they are reserved for national service and play a critical role in sustaining the economy, even in times of crisis.

He recalled the COVID-19 period as a defining example of their commitment. “During the COVID-19 era, everywhere was shut down. The seafarers staked their lives and did this job, and the nation’s wealth continued yielding,” he said.

Zakana maintained that granting tax waivers or exemptions to seafarers would not only recognise their sacrifices but also provide tangible relief to a sector that remains vital to national economic activity.

“They should give us that kind of regard to take this tax away from us, and it will help us a lot,” he said.

Both stakeholders agreed that as 2026 approaches, constructive engagement with government authorities is essential to ensure that the new tax regime reflects the realities of seafaring and does not undermine the welfare of those who keep Nigeria’s maritime and energy lifelines running.

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