From right: ED, Maritime Labour and Cabotage Services, NIMASA, Engr. Victor Ochei; ED, UBA  Nigeria North, Mrs. Emem Usoro;   Managing Director, Union Bank of Nigeria, Mr. Mudassir Amray; Director General NIMASA, Dr. Bashir Jamoh; ED Operations, NIMASA, Mr. Shehu Ahmed; Managing Director/CEO, Jaiz Bank, Dr Sirajo Salisu and Change Risk Officer, Polaris Bank, Mr Temi Ariboloye during a meeting to discuss modalities for the disbursement of the Cabotage Vessels Financing Fund CVFF at the NIMASA headquarters in Lagos, recently.
 

The Nigerian Maritime Administration and Safety Agency NIMASA has met with the executive management of the five Primary Lending Institutions PLIs comprising Union Bank, Zenith Bank, United Bank for Africa UBA, Polaris Bank and Jaiz Bank, to fine tune the processes for the disbursement of the N261billion Cabotage Vessel Financing Fund, CVFF.

This is sequel to the recent approval by the Federal Government for the appointment of the PLIs and the disbursement of the 20-year old fund.

Director General of NIMASA, Dr. Bashir Jamoh, who led proceedings at the meeting, noted that it was a major step towards the implementation of the directive by President Muhammadu Buhari that the fund be disbursed to deserving indigenous shipping firms as announced by Minister of Transport, Mu’azu Sambo in December last year.

He also disclosed that the essence of the meeting was to ensure that the agency and the PLIs were on the same page, with a view to ensuring that mistakes made under the scrapped Ship Building and Ship Acquisition Fund SASBF will prove to be useful lessons in managing the CVFF disbursement processes as well as to develop shipping and optimise the potential of the nation’s rich blue economy.

“We are engaging the banks on the management and disbursement of the CVFF because they are the ones who have the professional know-how in funds management and this would help us in the reduction of risk in order to avoid the same mistakes of the defunct SASBF “.

“The banks are expected to come up with issues such as the interest rate, tenor, collateral, and other requirements needed to access the fund. NIMASA is of the position that the interest rate should be in line with international best practices because the fund being disbursed is dollar denominated.”

“The CVFF regime should be a win-win for all stakeholders involved, including the banks and so, the banks should look at the windows of opportunity inherent in the regime for the benefit of all parties involved”, the DG said.

Representatives of the PLIs applauded the initiative and pledged their support towards ensuring judicious use of the funds to the beneficiaries in order to ensure accountability of the funds are guaranteed.

Managing Director of Jaiz Bank, Dr. Sirajo Salisu, who spoke on behalf of the PLIs, assured of prompt action towards disbursing the funds, noting that interested shipowners should be ready to abide by the provisions of the Cabotage Act.

“We will try our best to partner the would –be beneficiaries of the fund and I believe they are much aware that this is not a grant, this is money that is meant for a purpose and we will ensure that purpose is achieved to the benefit of the country”, he said.

Apart from the MD/CEO Jaiz Bank, Dr Salisu, others in attendance were Executive Director UBA Nigeria North, Mrs. Emem Usoro, Managing Director Union Bank of Nigeria, Mr. Mudassir Amray and Change Risk Officer, Polaris Bank, Mr Temi Ariboloye.

Also at the meeting were Executive Directors, Maritime Labour and Cabotage Services of NIMASA, Engr. Victor Ochei, Executive Director, Operations, NIMASA, Mr. Shehu Ahmed and a maritime stakeholder, Dr. Chris Asoluka, among other top management staffers of the agency.

Note that the Cabotage Act 2003 provides that NIMASA from the proceeds of the fund should make 50 per cent available, the PLIs are expected to support the project with 35 per cent, while intending shipowners would be required to make their contribution of 15 per cent of whatever amount of money is needed for the acquisition of a vessel.