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NIMASA will protect CVFF from abuse, says DG NIMASA, Dr. Peterside

Dr. Dakuku Peterside, DG NIMASA
 The Director General of the Nigerian Maritime Administration and
Safety Agency (NIMASA), Dr. Dakuku Peterside has expressed the agency’s resolve
to safeguard the Cabotage Vessel Financing Fund (CVFF) from any abuse.

 He told newsmen in Abuja at the weekend that the current
management of NIMASA would not allow the CVFF suffer the same fate as the Ship
Building and Ship Acquisition Fund (SBSAF).
The director general said that under his leadership the Agency would
take necessary precaution to ensure that all national assets under its care are
used for the benefit of all Nigerians.
He said he was bent on ensuring that the Agency commits itself to
the principles and letters of its enabling instruments.
He said that NIMASA under his headship would be rededicated to its
core functions of promoting indigenous participation in international and coastal
shipping as well as regulating the maritime sector for Nigeria’s economic
Explaining why the SBSAF may have failed, the DG observed that
while the SBSAF was backed by policy, the CVFF is backed by law which makes it
more difficult for the CVFF to be open to abuses.
“With the CVFF, the Agency contributes 35 per cent, the banks that
are the Primary Lending Institutions (PLIs) contribute 50 per cent, while the
applicant makes an equity contribution of 15 per cent.
He said, “The various layers of due diligence from the Agency to
the banks makes it very difficult for this programme to be abused.
“The protection is so because the banks for instance will
undertake the risk analysis because they are bearing 50 per cent of the risk.”
He assured stakeholders that NIMASA would ensure the disbursement
of the CVFF to qualified operators provided they meet the requirements as
stipulated in the guidelines.
The Cabotage Vessel Financing Fund (CVFF) is a product of the
Coastal and Inland Shipping Act of 2003 and provides for the disbursement of
loans to indigenous operators in the shipping industry to grow their fleet.

This fund is derived from the 2 per cent surcharge on all Cabotage
contracts which are deducted and warehoused in the CVFF.
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