FG Names Beneficiaries of Cabotage Vessel Financing Fund

•    Why And How ISAN Members Lose Out
After months of high powered, behind-the-scene lobbying, the Federal Government has finally unveiled the identities of the six lucky beneficiaries of the Cabotage Vessel Financing Fund CVFF.
Even though not officially unveiled by the Ministry of Transport, Shipping Position Daily confirmed last week that the elite list is made up of three Port Harcourt-based marine companies, two from Lagos and one from Calabar.

•    Why And How ISAN Members Lose Out
After months of high powered, behind-the-scene lobbying, the Federal Government has finally unveiled the identities of the six lucky beneficiaries of the Cabotage Vessel Financing Fund CVFF.
Even though not officially unveiled by the Ministry of Transport, Shipping Position Daily confirmed last week that the elite list is made up of three Port Harcourt-based marine companies, two from Lagos and one from Calabar.
The would-be beneficiaries that are based in Port Harcourt are: Starzs Investment Company, Aquashield Oil and Marine Services Limited and UTM Dredging Limited. The two companies which made the list from Lagos are: Zomay Marine & Logistics Limited and SeaBulk Offshore Operating Nigeria Limited. The only Calabar based company on the list is Nkrah Investment.
Shipping Position Daily however confirmed last week that the companies were still being screened by relevant security agencies to ascertain their suitability for the loan facilities.
The Cabotage Vessel Financing Fund was established by Section 42 Part V111 of the Coastal and Inland Shipping (Cabotage) Act, 2003.
Section 44 of the Cabotage Act empowers the Nigerian Maritime Administration and Safety Agency (NIMASA) to collect, deposit and administers the fund in commercial banks under guidelines proposed by the Minister of Transport and approved by the National Assembly.
The fund was meant to promote the development of indigenous ship acquisition capacity by providing assistance to Nigerian operators in the domestic and coastal shipping.
Our correspondent learnt that while it was easier for ‘unknown’ marine companies to scale through the hurdles, most of the relatively known indigenous marine and shipping companies could not meet the criteria that were set for the Funds administration and sustainability.
Our source at the Ministry of transport confirmed that, indeed many of the known firms in Lagos who are members of the Indigenous Ship owners Association of Nigeria (ISAN) made it, because “it was difficult for them to scale through”.
Asked why they couldn’t scale through, he defended the six firms that have been shortlisted. “The companies that made it have proven records of successful management of similar ventures, you can’t fault their competence”, he boasted.
He however refused to give details of ISAN member-companies that applied for the fund. He also failed to shed light on the process of due diligence that the applicants were subjected to.
He confirmed that, while the names were submitted to the ministry by NIMASA, it was the duty of the Minister to further scrutinize the would-be applicants.