Indigenous shipowners have urged the Minister of Marine and Blue Economy, Adegboyega Oyetola, to ensure that the process stipulated for the Cabotage Vessel Financing Fund (CVFF) disbursement is strictly followed in line with the requirements of the Cabotage Act.

They emphasised the importance of compliance with the legal framework to maintain transparency and accountability in the fund’s administration.

The shipowners made the call while commending the Minister for his recent directive to begin the process for the long-awaited disbursement of the fund, describing the move as a significant shift from over two decades of administrative stagnation.

According to them, the directive ushers in a new era of strategic repositioning of the nation’s indigenous shipping industry, offering renewed hope for growth and development.

The Managing Director of Starzs Marine and Engineering Limited, Greg Ogbeifun, acknowledged that the Minister’s directive will stimulate growth in the shipping sector, but stressed that the government must adhere to due process as outlined in the Cabotage Act to ensure the initiative’s legitimacy and effectiveness.

Ogbeifun, however, expressed uncertainty about whether the legislative procedures required by the Act are being duly followed.

He further stated that there appears to be reasonable justification to believe the Minister is acting in line with previous guidelines.

The President of the Shipowners’ Association of Nigeria (SOAN), Sonny Eja, stated that aside from the CVFF being long overdue, partnering with the Bank of Industry (BoI) for the disbursement is a welcome development.

He stated that the single obligor limit of $25 million is acceptable as it would enable borrowers to utilise the funds judiciously wherever they are deployed.
Eja, who is also the Managing Director of Petromarine Nigeria Limited, however, urged the government to put measures in place that would ensure that beneficiaries put the fund to good use.

He expressed confidence that the appropriate criteria have been set for accessing the funds and that strong measures are in place to ensure recovery, preventing misuse and default.

Eja urged prospective beneficiaries to utilise the funds responsibly to avoid tarnishing the industry’s reputation through non-performing loans.

He also acknowledged the equity contribution requirement as a positive step, emphasising that it ensures borrowers have a sense of commitment and responsibility when accessing the funds.

On his part, the President of the Nigerian Shipowners Association (NISA), Sola Adewunmi, emphasised the need for the guidelines to be rolled out to prospective beneficiaries, enabling them to clearly understand the process for accessing the fund.

“With the Minister’s pronouncement, let’s hope that things will change. But let us see the guidelines first, because we are all waiting for the guidelines. When the guideline comes out, we will know if it is something that will be realistic,” he stated.

The President of Maritime Security Providers of Nigeria (MASPAN), Emmanuel Maiguwa, urged the Nigerian Maritime Administration and Safety (NIMASA) to follow due diligence in conducting market research before disbursing the controversial $700 million.

Maiguwa also said there was a need for NIMASA to put a mechanism in place that will enable a swift review of the existing guidelines to ensure that shipowners are not frustrated.