By Joshua Yousouph
Following the House of Representatives approval for the disbursement of the $360 million Cabotage Vessel Finance Fund (CVFF) to Nigerian ship owners, findings by Shipping Position Daily have revealed that ship owners have also started to negotiate with Primary Lending Institutions (PLIs) to access the fund.
Shipping Position Daily recalls that the House of Representatives had earlier ordered the suspension of the planned disbursement of the CVFF to Nigeria shipping companies by the Nigerian Maritime Administration and Safety Agency (NIMASA).
The House also directed the agency to present an audited statement of account showing all monies that have accrued to the CVFF within seven days. It also directed the committee to engage an external auditor to audit all contracts that have been entered into in the Cabotage regime and report the same to the House within 14 days.
However, the Committee of the House, in its recent report gave the nod for the disbursement, at the end of an investigation chaired by Barr Legor Idagbo. After a thorough analysis of the various submissions, coupled with the explanations given by the Ministry and NIMASA, the Committee observed that due process was followed in the planned disbursement of the CVFF.
But, speaking with our correspondent exclusively last week, the Chairman of the CVFF Committee set up by the Nigeria Ship Owners Association (NISA), Dr. Edward Sowho informed that stakeholders have begun to individually apply and negotiate for the disbursement of the fund with the five PLIs.
Dr Sowho added that the negotiations are based on meeting the criteria for the disbursement and approval of request by NIMASA. He also noted that each stakeholder will have to make a request for a maximum loan of about $25 million for his or her company, before it is approved by NIMASA based on the advice of the PLIs.
The Chairman of NISA’s CVFF Committee opined that due to the change of government, there might not be much progress in the disbursement until a new Minister of Transportation is appointed.
In his words: “Nothing much has happened since NIMASA had earlier met with the ship owners such as NISA, SOAN and other stakeholders. NIMASA had also met with the PLIs before now. Right now, the PLIs and the stakeholders are holding what I will call individual meetings. This is because the person who wants to buy a vessel would need to discuss with the various five PLIs to decide on the one he wants to work with and possibly meet the criteria or approval of his request.
“Each stakeholder will have to make a request for the loan which is about $25 million for a company. That is the maximum. Then he turns in his application for approval. It will eventually be approved by NIMASA after it has been advised by the banks.
“Because of the change of government, the Minister has gone and there is currently no Minister of Transportation. I think until a new minister is appointed, I don’t think much will happen. That is the way I see it” Dr Sowho noted.
Speaking further, Sowho disclosed that the association has decided to float and work with its shipping line named NISA Ocean Transport Limited to access the CVFF. He stressed that the Shipping Line is owned by all members and not a selected few, adding that every member of NISA has a stake in the company.
“NISA is going to work with NISA Ocean Transport Limited. It is a shipping line owned by NISA. It is that company that is going to apply for the Loan. NISA is an association, it is that shipping line we are floating to access the CVFF. The Shipping Line is owned by all members; it is not a selected few. Every member of NISA has a stake in the company” Sowho concluded.
On his part, the President of the Ship Owners Association of Nigeria (SOAN) Dr. Mkgeorge Onyung lamented that ship owners have been in a rat race for the CVFF for over 20 years and they are yet to access the funds.
Onyung noted that the ban from the National Assembly was a surprise to all stakeholders and now that it has been lifted for almost two weeks, the authorities involved are yet to push the disbursement through.
The SOAN President expressed optimism that the funds will be disbursed by the new administration, adding that the stakeholders are looking forward to the efficiency of NIMASA on the CVFF disbursement.
When asked if Ship owners have been invited for any meeting by NIMASA since the ban was lifted by the House of Reps, Onyung said “Did NIMASA say they are going to invite ship owners? That is an expectation. If we continue to speculate, we are not going to benefit from the industry. We are not supposed to be speculating. We are supposed to know what we are doing.
“If they invite us to a meeting, it would be publicized. NIMASA themselves will even say it. I don’t know whether they are going to invite us. I don’t even know whether they are supposed to invite us, because these days, people do what they like to do. I don’t know the agenda they are following.
“This ban from the National Assembly is like a surprise to everybody. When they lifted the ban we all read it in the papers. They have lifted the ban for over a week now and nothing has been done. One day is enough for NIMASA. NIMASA has a lot of powers. We are waiting for their power”, Onyoung concluded.
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