· No cause for anxiety, we will repay AMCON loans – SOAN
· Debtors should not get CVFF-NISA
Oluyinka Onigbinde
There are indications that the five Primary Lending Institutions (PLIs) that were recently approved by the Federal Government for the disbursement of the Cabotage Vessel Financing Fund (CVFF) are circumspect about the deal.
Our sources confirmed that the PLIs are jittery about the profile of shipowners that are currently indebted to the Asset Management Company of Nigeria (AMCON).
Findings by our correspondent revealed that at least 15 ships owned by Nigerians are currently under arrest by AMCON, owing to the inability of the owners to pay back their loans.
Shipping Position Daily confirmed that the PLI’s namely: Jaiz Bank, Union Bank, Zenith Bank, UBA and Polaris Bank are yet to reach an agreement on the modalities and requirements needed for the shipowners to access the fund.
At the last meeting between the Nigerian Maritime Administration and Safety Agency (NIMASA) and the PLIs, the Director General NIMASA, Dr. Bashir Jamoh, gave 72 hours for the lending institutions to come up with modalities for the disbursement of CVFF, which include a uniform interest rate, among others.
However, two weeks after the meeting, checks by our correspondent revealed that the PLIs are yet to submit the modalities. There are indications that they are yet to reach an agreement about modalities and guidelines, including uniform lending rate.
When our correspondent got across to a top official of one of the PLIs that were present at the NIMASA meeting, he confirmed that the banks are concerned about the profile of shipowners who may qualify for the CVFF, but are currently in the bad books of AMCON for unpaid loans.
The source, who pleaded anonymity said the banks are currently considering the status of the shipowners, so as to determine whether or not they should be given the loans. They fear that AMCON may confiscate vessels bought with the loans, after the disbursement of the CVFF by the banks.
He confirmed said the PLIs were given three weeks to finally submit the modalities and requirements needed for the disbursement.
Also speaking with our correspondent, one of the bank officials who attended the meeting, Mr. Femi Aribaloye, when asked about whether or not the banks will consider disbursing the loans to shipowners who are owing AMCON, denied knowledge of what the banks would do.
Aribaloye, who is Directorate Head, Enterprise-wide Risk Management at Polaris Bank told Shipping Position Daily that: “I am not sure, but I believe that such decisions will be taken by the management. I may not be the best person to speak on this, but I am sure that there will be a way to go about this”.
Reacting to whether or not the CVFF will be disbursed to shipowners who are indebted to AMCON, the President of Shipowners Association of Nigerian (SOAN); Dr. Mkgeorge Onyung, said there is no anxiety over the AMCON debt.
According to him, withholding the CVFF because of AMCON debt will further worsen plans to revive the economy.
He stated that there is no cause for shipowners to be anxious over the AMCON debt, even as he assured that the shipowners will work out arrangements with the banks to determine how the issue of the debt will be resolved.
Onyung said: “The economy can only improve by ocean trade, and this disbursement may be the catalyst that is going to revive the economy. I hope you know that that shipping contributes more to the economy than the oil sector”.
The SOAN President, who is also a medical doctor, said, “There is no anxiety; anxiety is sickness, we are going to work out arrangements with the banks, we have to congratulate NIMASA and the minister for this, because others could not do it. “Let everybody put hands together to make it work, everybody will seat together to make it work”.
Specifically referring to the fears being nursed by the banks about the likely effect of the AMCON debts, he said: “If they don’t want to disburse the fund because of that, it means we are back square zero”.
“We (SOAN) have big names in the industry who had up to seven tankers, but they’ve fizzled away, so we need to make this work” he said.
But, stating a totally different position on the AMCON debts and the CVFF disbursement, the chairman, Board of Trustees (BoT) of Nigerian Indigenous Shipowners Association (NISA); Chief Isaac Jolapamo, argued that those who are owing should not be given the CVFF.
Speaking to our correspondent, he stated that the banks may not approve the CVFF for ship owners who are owing, while stating that the money will only be given to shipowners who are currently engaged.
“Whoever is owing AMCON must have been referred to the bank, the bank may not approve the person for CVFF, it is not a big issue, you cannot go and take money when you don’t have work to do”, he argued.
On his part, a member of NISA; Capt. Taiwo Akinpelumi denied knowledge of any ship owner who is indebted to AMCON. “I wouldn’t know the shipowners that are on the AMCON debt list, but I believe any ship owner who is on the AMCON debt list can engage his bank, it’s going to be a mutual agreement between the debtors and the bank”, he said.
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