Indigenous shipowners have unanimously commended the Minister of Marine and Blue Economy, Adegboyega Oyetola, over his recent directive to the Nigerian Maritime Administration and Safety (NIMASA) to begin the process for the disbursement of the Cabotage Vessel Financing Fund (CVFF).
The Minister had directed the NIMASA to commence the process that will lead to the long-awaited disbursement of the CVFF.
This directive marks a significant shift from over two decades of administrative stagnation and ushers in a new era of strategic repositioning of Nigeria’s indigenous shipping.
Speaking on the Minister’s directive, the Managing Director of Starzs Marine and Engineering Ltd, Greg Ogbeifun, said the Minister’s directive is a welcome development that will further spur the growth of the sector.
Ogbeifun, who is the former President of the Shipowners Association of Nigeria (SOAN), however, urged the government to allow due process according to the requirements of the Act to be followed.
According to Ogbeifun, the Minister is acting accordingly by taking the bull by its horns through the disbursement of the fund.
“The Minister’s move is extremely commendable. Extremely, extremely commendable. The important thing is that due process according to the requirements of the Act has to be followed. So, that’s the summary. I think it’s a very commendable step. I’ve looked at the marine notice that was sent out and I think it’s majorly in line with the requirements of the Act.
“Even, when you look at the previous guidelines, there is good reason to at least believe that the Minister is acting accordingly. But I don’t know if the requirements of the Act as it relates to the legislating part of government are followed.
He further agreed that the directive would finally unlock the long-standing issue of disbursement of the CVFF.
Also speaking, the President of the Shipowners’ Association of Nigeria (SOAN), Sonny Eja, also applauded the Minister, saying the decision was a welcome development.
Eja stated that aside from being long overdue, partnering with the Bank of Industry (BoI) for the disbursement is another feat.
“I would say this is a welcome development. Though it’s long overdue you know like I’ve always said to people ‘don’t blame yourself for not doing something yesterday or for not doing something last week or last month, the best time to start is now and so it’s a welcome development and I’m equally excited at the fact that they are partnering with BOI in respect of this fund. For me, to hear that they’re going to work with BOI to disburse this fund is quite a good development, too.
“Of course, the single obligor of $25 million is okay, it’s a welcome deployment as well as it would allow wherever the borrowers are going to be to adequately use this fund judiciously.”
Eja, the managing director of Petromarine Nigeria Ltd, however, urged the government to put measures in place that would ensure that beneficiaries put the fund to good use.
“Thirdly, I want to believe that they have set the right criteria for accessing these funds and I want to believe also that they have put in place very very good measures to recover these funds so that people don’t just access these funds divert them for other purposes and then they are not able to pay back.
“Whilst we commend the minister and the federal government through Mr President, we equally would urge whoever the beneficiaries of this fund will be to ensure that they’re put into good use so that it won’t give the industry a bad name that either ship owners or other stakeholders just access this funds and then they now become non-performing loans.
“I believe also that the equity contribution that they have put in place is okay so that there’s a commitment on the part of the borrower to know that okay, I equally have a part to play accessing these funds,” Eja stated.
On his own, the President of the Nigerian Shipowners Association (NISA), Sola Adewunmi, also commended the Minister, saying it was the first time a Minister would direct NIMASA to commence the process for disbursement of CVFF.
He further stated that with the Minister’s directive, the guidelines should be rolled out to beneficiaries to know how to access the fund.
“With the Minister’s pronouncement, let’s hope that things will change. But let us see the guidelines first. Also, I think this is the first time a Minister will come out to say, NIMASA, start this process.
So, let’s see, we are all waiting for the guidelines. When the guideline comes out, we know it is something that will be realistic,” he stated.
