Despite securing accommodation for the headquarters of the Regional Maritime Development Bank (RMDB) about four months ago at the multi-million Naira Nigerian Maritime Administration and Safety Agency (NIMASA) Abuja zonal office, the bank’s takeoff has suffered yet another setback, due to lack of adequate funding.
The RMDB is a baby of the Maritime Organisation of West and Central Africa (MOWCA). The bank was contemplated to bolster regional maritime activities in certain areas.
The regional bank is designed to function like a regular commercial bank, requiring sufficient capitalization to support its activities.
However, investigations conducted by the Shipping Position Daily have revealed that the RMDB is struggling to commence operations due to a lack of finance and the delayed nomination of Vice Presidents from various member countries.
An impeccable source who is close to the workings of the specialized bank, but who pleaded anonymity, the critical hurdle faced by the bank is the delayed nomination of Vice Presidents from various member- countries of MOWCA.
The MOWCA is comprised of: Angola, Benin, Cameroon, Cape Verde, the Congo, Cote d’Ivoire, the Democratic Republic of the Congo, Gabon, The Gambia, Ghana, Guinea, Guinea-Bissau, Equatorial Guinea, Liberia, Mauritania, Nigeria, Sao Tome and Principe, Senegal, Sierra Leone and Togo.
But, the bank is still awaiting the necessary funds to become operational. This financial delay has raised concerns within the maritime industry as the RMDB’s intended role in supporting maritime development in the region remains unrealized.
Our source further elaborated that the recent controversy surrounding the recall of the Secretary General of the Maritime Organization for West and Central Africa (MOWCA); Paul Adalikwu by the Nigerian Ministry of Transportation could further hamper the bank’s take-off.
He explained that the recall of the MOWCA Secretary-General is seen as a move that could impede the seamless functioning of the organization, thereby further hampering RMDB’s stunted progress.
He further stated that the recall of the Secretary-General has sparked a debate over the extent of Nigeria’s authority to recall and replace an elected secretary-general.
Quoting Article 16 of the MOWCA Act, the source explained that the interim role of the Secretary-General should be entrusted to one of the four directors of MOWCA.
Furthermore, he stated that Article 73 of the MOWCA Act outlines that the Secretary General of MOWCA is elected by the General Assembly of Ministers of Transport of Member States for a four-year term, which can be renewed only once thereafter.
The source said with the current controversy involving the recall of the Secretary General who is a Nigeria, there is a risk that the country might lose its influential position within the MOWCA to other member states.
According to him, the Regional Maritime Development Bank’s anticipated take-off has been significantly delayed due to paucity of capital, even as he added that the bank’s requirement for proper capitalization, coupled with the pending nomination of Vice Presidents from various countries, has led to a standstill in its operational plans.
Findings by this newspaper have revealed that the recent controversy surrounding the recall of the MOWCA Secretary-General has further compounded the challenges facing the bank.
This is even as stakeholders in the Nigerian maritime industry have expressed doubts about the future of the RMDB and its location in the country.
Reacting to the delayed takeoff of the bank, the President of Nigeria Chamber of Shipping (NCS) Alhaji Aminu Umar told our correspondent said that Nigerian ship-owners do not need to wait for the bank to take off, he said there are better opportunities that will serve the industry better than the RMDB.
He said “I have been in the discussions on the Maritime Bank. I know that it has not started yet. So I don’t know at what level they are now. I don’t want to go into it because I don’t know the level they are as a matter of fact. To be honest, I think there are better opportunities.
“It doesn’t mean if there is no Maritime bank, Nigerian ship owners cannot have access to funds. One of the funds is the CVFF; one of the intervention funds is the CVFF. There are other intervention funds that ship owners can be able to access from the CBN which has nothing to do with the CVFF.
“There are funds and opportunities of finance by other big multilateral organizations. Banks like AFREXIM, IFCAFC, and NEXIM. Today, NEXIM is leading the financing and championing the establishment of Sealink which is a shipping company that some investors and promoters are trying to push to be able to become liner service within the West African sub-region.
“This is something that NEXIM has been anchoring for so many years. However, there are other, the commercial banks are there. So I think the biggest challenge of financing in shipping is fear. It is not that there are no funds or money. It is the fear the financial institutions are having in the business sector”, he said.
