African Shipowners Association (ASA) has described the disbursement of the $700 million Cabotage Vessels Finance Fund (CVFF) to Nigerian shipowners at a single-digit interest rate through banks as a perfect strategy that would foster transparency and eliminate dubious borrowers.
Speaking ahead of the CVFF disbursement scheduled for this August by the Nigerian Maritime Administration and Safety Agency (NIMASA), President of ASA, Captain Ladi Olubowale, noted that many developed and developing nations like Japan, China and Indonesia have established export funds for ship development, with their banks actively involved in ship financing, stressing that Nigeria should not be an exception.
Olubowale, while speaking in Lagos at the weekend, observed that most Nigerian banks do not have dedicated maritime desks, but rather subsume maritime affairs under their energy departments.
He stressed that involving banks in the CVFF disbursement would rectify the lapse and lead to the creation of maritime-specific desks.
Citing the experience of Seamate Maritime Integrated Services Limited, Olubowale, who is the Managing Director, explained that the company had approached several banks for funding without success because many financial institutions lacked understanding of the shipping trade.
The ASA boss stated that many shipping companies in Nigeria and across Africa have failed because shipowners insisted on managing the business themselves.
“This disbursement will unlock numerous opportunities, as more Nigerians will own ships, creating greater chances for Nigerian-flagged vessels to trade and compete within Nigeria’s coastal waters and across Africa, currently dominated by foreign vessels.”
This is the time for us to play on our field,” he said.
Olubowale added that the directive on CVFF disbursement would complement the efforts of the Nigerian National Petroleum Company Limited (NNPCL) in developing the downstream and upstream sectors of the nation’s petroleum industry.
He maintained that the CVFF disbursement would transform Nigeria into a hub for qualified, trained, and certified seafarers, with a ripple effect on the entire African continent.
He, however, noted that substantial groundwork is required to ensure a seamless disbursement process, stressing that “disbursement is just one part of it; readiness, execution, and implementation must be connected from end to end.”
On the preparations by his body for the CVFF disbursement, Olubowale explained that ASA Africa and ASA Nigeria are composed of companies that own and operate vessels trading not only within Nigeria but across African routes.
He pointed out that all ASA Nigeria members are licensed by NIMASA, and that their vessels comply with the International Maritime Organisation’s (IMO) regulations and Classification Society standards.
Olubowale added that the association maintains a comprehensive database of members, detailing their trading activities and locations of their cargo, based on extensive studies and advocacy efforts.
Ahead of the August event, Olubowale advised NIMASA to begin engaging, sensitising, and educating stakeholders on the requirements for accessing the Fund, emphasising the need to drive fleet development capable of trading within Nigeria and Africa, while building national capacity.
