Indigenous ship owners have said the change in government and vacuum in the leadership of the transport ministry may stall the progress in the disbursement of the $360 million Cabotage Vessel Finance Fund (CVFF).
Also, the ship owners have started negotiations with the primary lending institutions (PLIs) to access the fund, which is pegged at $25 million as the maximum loan for each ship owner.
Recall that the House of Representatives had recently approved the disbursement of the vessel financing fund after it earlier ordered the suspension of the planned disbursement of the CVFF by the Nigerian Maritime Administration and Safety Agency (NIMASA).
The House directed NIMASA to present an audited statement of account showing all monies that have accrued to the CVFF within seven days. It also directed a committee set up for the investigation 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.
The committee of the House, after a thorough analysis of the various submissions, coupled with the explanations given by the Ministry of Transportation and NIMASA, observed that due process was followed in the planned disbursement of the CVFF.
The Chairman of the CVFF Committee set up by the Nigeria Ship Owners Association (NISA), Dr. Edward Sowho, said ship owners had individually begun to apply and negotiate for the disbursement of the fund with the five PLIs.
Sowho informed that the negotiations are based on meeting the criteria for the disbursement and approval of a request by NIMASA.
He also noted that each ship owner would have to request a maximum loan of about $25 million for his company before it is approved by NIMASA based on the advice of the PLIs.”
Sowho, however, expressed displeasure that the change of government has slowed down the progress in the disbursement of the funds until a new Minister of Transportation is appointed.
“Nothing much has happened since NIMASA had earlier met with the major ship owners and other stakeholders. NIMASA had also met with the PLIs before now. Right now, the PLIs and the stakeholders are holding 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.
“But because of the change of government, there is currently no minister of transportation and until a new minister is appointed, I don’t think much will happen in the disbursement of the funds. That is the way I see it,” Sowho noted.
Sowho further disclosed that members of NISA have decided to float and work with its shipping line named ‘NISA Ocean Transport Limited’ to access the CVFF.
He informed me that the shipping line is owned by all members of NISA, who also have a stake in the company.
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 are yet to access the funds.
Onyung noted that despite the approval of the House of Representatives to disburse the funds 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.
