The Nigerian Association of Master Mariners (NAMM) is pressing the Nigerian Maritime Administration and Safety Agency (NIMASA) to transparently disburse the Ship Acquisition and Ship Building Fund (BASBF), contradicting NIMASA’s assertion that the funds have been depleted.
There are claims that a former Minister of Transportation; Mr Rotimi Amaechi had disclosed that the SASBF had been depleted as ship owners who borrowed the money refused to pay back. Similarly, the immediate past Director General of NIMASA, Dr. Bashir Jamoh was quoted to have mentioned during a public hearing at the National Assembly that the SASBF is no longer available and has been overtaken by the Cabotage Vessel Financing Fund (CVFF).
However, while speaking during the second quarter 2024 lecture on “Cabotage Finance” organized by the Nigerian Association of Master Mariners in Lagos last weekend, a former Minister of Interior, Captain Emmanuel Iheanacho outlined several key financing options for ship acquisition. These include the BASBF, which supports ship acquisition and construction, and the Cabotage Vessel Financing Fund (CVFF), which was specifically designed for vessels involved in coastal trade.
Captain Iheanacho clarified that the SASBF has not been canceled, contrary to the belief that it was replaced by the CVFF. He explained that both the SASBF and CVFF are separate entities, and stakeholders should verify the status of these funds to ensure that they are still accessible.
Captain Iheanacho stressed that he was one of the beneficiaries of the SASBF and he fully paid back the loan as expected.
The ship owner and Master Mariner highlighted a significant project by the Nigerian Content Development and Monitoring Board (NCDMB), which has allocated $100 million, managed by the Bank of Industry (BOI), to assist individuals and businesses in acquiring ships.
Captain Iheanacho urged stakeholders to investigate and utilize these resources despite widespread confusion and misinformation regarding their availability. He also noted that stakeholders should approach the NCDMB and BOI to determine the availability and access requirements for these funds.
“I just want to bring your attention to CVFF, a lot of people have jumbled this up and they don’t really understand it. There are several facilities that the government has put down. The first one is the Ship Acquisition and Ship Building Fund. SASBF was not cancelled. It is supposed to be still there, but nobody is looking at it, just because they introduced the CVFF.
Putting the records in proper perspective, he explained that, “people thought that the SASBF had become CVFF. No, the two of them are still there. So, there is the SASBF, and I suggest that you try and find out if it is still there and the CVFF is there. But apart from that. the Ministry of Transportation also has another funding that it maintains, but they don’t tell you about this thing for developing ship owning.
“Ministry of Transportation, now the Ministry of Marine and Blue Economy has a project that it has in-house for financing people who want to buy a ship. So again, it’s something that you can try and find out the details” Iheanacho noted.
On his part, the National President of NAMM, Captain Tajudeen Alao raised an alarm concerning NIMASA’s ongoing collection of a three percent levy for shipping development and a two percent levy for the CVFF.
Captain Alao emphasized that these funds serve distinct purposes and should be managed accordingly. He noted that the shipping development levy includes a two percent charge for shipping and promotional development, along with an additional one percent for NIMASA’s administrative expenses which is totally different from the two percent charge for CVFF.
Speaking further, Captain Alao noted that NIMASA’s leadership, represented by the immediate past Director General, Dr Bashir Jamoh, had claimed during a public hearing at the National Assembly that the funds were depleted. He stressed that if the funds were indeed exhausted, NIMASA should cease collecting these levies, regardless of their gazetted status.
The NAMM President however emphasized the need for NIMASA to seek expert advice from Master Mariners and other professionals when disbursing funds intended for shipping development. He argued that banks, which lack specialized knowledge of the maritime industry, have mishandled loans, leading to substantial financial misappropriation.
Captain Alao underscored the importance of proper fund utilization to propel the maritime industry forward, emphasizing that funds must be used to achieve their intended purposes. He also called for the initiation of local shipbuilding projects, starting with small crafts, to enhance Nigeria’s maritime capabilities and reduce dependency on foreign-built vessels.
