Shipowners To Get $700m Cabotage Fund In Four Months — NIMASA

The Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dayo Mobereola, on Wednesday disclosed that efforts are underway to ensure that indigenous shipowners access the $700m Cabotage Vessel Financing Fund (CVFF) within the next four months.

Addressing journalists on Wednesday after an oversight visit by members of the House of Representatives Committee on Maritime Safety, Education and Administration, Mobereola revealed that the Primary Lending Institutions (PLIs) have been increased to 12 banks.

According to the NIMASA DG, “What we have done is to streamline the guidelines according to what has been approved by the Minister of Marine and Blue Economy in order to ensure that it takes nothing less than three to four months for indigenous shipowners to access the funds.

“What is most important about it is that we are also making use of the banks. So, it will not be totally a NIMASA project. The banks are going to carry out the initial risk assessment to be sure that whoever wants to access this fund has the capacity, in terms of their own financial capacity, to repay.

“The bank is going to lend 35 per cent while NIMASA is going to lend the other 50 per cent.

“So that risk is being taken on by the bank to ensure that whoever is coming to us is a bona fide shipping company who has the capacity to trade and who has the capacity to also repay because it’s a revolving fund.

“The strength that we do not have, we have handed over to the banks to help us manage that side of it. Once we start it, before the end of this year, by God’s grace, it will be revolving, and it will be just continuous over the years.”

On the involvement of the banks, the NIMASA DG stated that the agency has expanded the PLIs to 12 banks.

He said, “We re-advertised, and the former ones also applied. So we have 12 banks now. And the fact remains that we are still insisting that we want single-digit interest rates because we want our shipping companies, our vessels, to be able to compete with international shipping companies.

“And we need patient capital, meaning that when a loan is given, the loan is given for about 15 years or 20 years, so that a shipowner doesn’t have to be under pressure to pay back immediately. That is one side of it.
“The other part of it is that we are also working to ensure that there is cargo for them to carry. We are working with the cargo generators, the NNPCs, the NLNGs, and the exporters to make sure they patronise Nigerian vessels that will be available at that time. So it’s a win-win and the shipowners are on board with us.”

Speaking earlier, the acting Chairman of the House Committee on Maritime Safety, Education and Administration, Honourable Uduak Odudoh, assured the NIMASA DG of the committee’s support.

He said, “I can say of truth that what we’ve seen so far today, starting from the presentations that were made by the DG, that we are impressed.

“We are impressed primarily when the DG was doing his presentation. We saw that in the last three years, we’ve not had one single piracy incident or other maritime crimes. What does that entail? That means people who are doing business in the water now have the opportunity to do their business freely.

“And NIMASA will now also have more opportunities to generate more funds for the nation.

“Let me also tell the DG, he’s about one year now on the saddle and a lot of innovations that he has brought into work—we are impressed. And what is left for him is to improve upon the achievements of his predecessor and even surpass them.

“When he was doing his presentation, he also mentioned some challenges which we have taken very seriously. When we get to the National Assembly, we will continue to work and collaborate with NIMASA and collaborate with the Ministry of Marine and Blue Economy for the success of this present government and the success of Nigeria.”

Shipowners To Get $700m Cabotage Fund In Four Months — NIMASA is first published on The Whistler Newspaper