The Nigeria Maritime Administration and Safety Agency (NIMASA) has restated its commitment to resolving the ongoing impasse in the disbursement of the Cabotage Vessel Finance Fund (CVFF).
Jamoh, in a pivotal meeting with the new Managing Director of Nigerian National Petroleum Company (NNPC) Shipping Limited, Mr. Ponas Gliatis and the President of Nigerian Chamber of Shipping (NCS), Mr. Aminu Umar at the agency’s headquarters in Lagos on Tuesday affirmed NIMASA’s commitment to tackling issues that have affected the CVFF disbursement
Jamoh revealed a critical stumbling block as the discrepancy in the interest rates proposed by the approved Primary Lending Institutions (PLIs) appointed by NIMASA.
He said while the banks insisted on a 7.5 percent interest rate, NIMASA advocated for a slightly lower 6.5 percent. He explained that the one percent difference has impeded the progress of CVFF disbursement.
The NIMASA Director General further highlighted the agency’s prior engagements with NNPC Shipping, where the company had committed to taking up 9 percent out of the 15 percent reserved for ship owners. Despite the setbacks, Jamoh encouraged the new NNPC Shipping boss to build on the milestones achieved by his predecessor.
Addressing the pressing issue, Jamoh stated that the discussions surrounding CVFF could be concluded within the next six months. He pledged to update the Minister of Marine and Blue Economy, Adegboyega Oyetola, on the deliberations and progress made.
During the meeting, the DG NIMASA emphasized the importance of CVFF in promoting job creation and expanding the maritime industry. He lamented the comparatively low contribution of shipping to Nigeria’s GDP, citing Singapore’s example where shipping accounts for over 7 percent of GDP.
On his part, Mr. Ponas Gliatis, the Managing Director of NNPC Shipping, assured NIMASA and the maritime community of the company’s collaborative role in addressing shipping challenges. Gliatis specifically pledged support for the nation’s seafarers’ development, offering strategic seatime opportunities.
As discussions unfolded, it was revealed that NNPC Shipping had agreed to be off-takers for vessels acquired through CVFF disbursement. This development, coupled with the interest from foreign banks, including Afrexim Bank, African Development Bank, and American Express Bank, injects fresh optimism into the CVFF fund disbursement process.
The meeting concluded with a commitment to expedite the process. The NIMASA DG appealed to NNPC Shipping to revive agreements made with the previous management, setting a timeline of six months for the CVFF disbursement.
Speaking with our correspondent shortly after the meeting, President of the Nigerian Chamber of Shipping, Aminu Umar, expressed satisfaction with the proposed 6.5 percent interest rate on CVFF, deeming it favourable in Nigeria’s challenging fiscal environment.
Umar further noted that the collaboration signifies a significant step towards fostering investment, job creation, and economic growth in Nigeria’s maritime sector.
In his closing remarks, Mr. Ponas Gliatis assured that under his leadership, previous agreements between NIMASA and NNPC Shipping would be promptly acted upon, further underscoring the commitment to drive positive change in the maritime industry.
