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| Engr. Alex Egenti, CEO, Millennium Shipping |
A marine
engineer, Mr Alex Egenti, on Tuesday said the indigenous shipping sector lacked
dedicated funds to boost operations in the sector.
engineer, Mr Alex Egenti, on Tuesday said the indigenous shipping sector lacked
dedicated funds to boost operations in the sector.
Egenti, who is the Chief Executive
Officer of Millennium Shipping, stated this in an interview in Lagos.
Officer of Millennium Shipping, stated this in an interview in Lagos.
He said that ship owners only had
access to commercial bank loans which were of high interest rate and
unfavourable to the business.
access to commercial bank loans which were of high interest rate and
unfavourable to the business.
The mariner said the development
had limited the shipping sector from employing as many people as it should have
been able to do.
had limited the shipping sector from employing as many people as it should have
been able to do.
“Maritime has so much if our
financial institutions are revived.
financial institutions are revived.
“The major problem is that our
financial industry only gives loans on commercial basis, which has one of the
highest interest rates.
financial industry only gives loans on commercial basis, which has one of the
highest interest rates.
“When you are going to get a loan
for 35 per cent or 28 per cent, which is the cheapest; tell me what you can
afford to achieve with a 28 per cent interest rate.
for 35 per cent or 28 per cent, which is the cheapest; tell me what you can
afford to achieve with a 28 per cent interest rate.
“If you request for N10 billion
to commence a project and you are taking it at 28 per cent, it means that you
will be paying back N2.8 billion to the owners of the money yearly,’’ Egenti
said.
to commence a project and you are taking it at 28 per cent, it means that you
will be paying back N2.8 billion to the owners of the money yearly,’’ Egenti
said.
He wondered if such a business
would ever survive.
would ever survive.
The ship owner suggested that
there should be a way of bringing in funds for shipping business and not
commercial loans.
there should be a way of bringing in funds for shipping business and not
commercial loans.
“Ship owners have become stranded
due to lack of funds and that is the reason why most ships in Nigerian waters
belong to foreigners, ‘’ Egenti said.
due to lack of funds and that is the reason why most ships in Nigerian waters
belong to foreigners, ‘’ Egenti said.
The mariner said the Cabotage
Vessel Financing Fund (CVFF) was unreliable as there had been no beneficiary.
Vessel Financing Fund (CVFF) was unreliable as there had been no beneficiary.
