Esther Oritse
Lagos — The management of the Nigerian Maritime Administration and Safety Agency (NIMASA) on Monday unveiled the guidelines for the Cabotage Vessel Financing Fund (CVFF), setting the loan repayment period at eight years.
Speaking at a stakeholders’ forum on the implementation of the fund, NIMASA Director General, Dr. Dayo Mobereola, stated that the forum was convened to engage stakeholders in establishing a transparent, efficient, and impactful framework for the utilization of the fund, aimed at empowering indigenous shipowners.
Mobereola disclosed that the agency has obtained all necessary approvals for disbursement, emphasizing that the fund has the potential to transform Nigeria’s maritime sector once disbursed.
He said: “The Fund when disbursed, will eventually be repaid as at when due. What we have said is this, as a borrower, we are not giving you the money directly, you have identified the vessel you want to buy and we are going to pay directly to the owner of that vessel. So at the Bank, we have a line on that vessel, until you repay in eight years. So there is no way the Fund can be diverted.
“Like I said in my keynote address, right now, coastal trade is dominated by foreigners, so every vessel that will be purchased through this Fund would replace those foreign vessels.
“And when you replace a foreign vessel, it means your income, your taxes, will remain within the Nigerian economy. You will recruit Nigerian seafarers, you are going to recruit Nigerian technicians, every business you are going to do is going to be within the economy.
“The disbursement will be transformative for our industry and Empower indigenous shipowners to compete favourably, boosting local content in the maritime sector, creating employment opportunities for Nigerian seafarers,
Strengthening ancillary maritime services
“CVFF Implementation Framework will ensure transparency and accountability, established a dedicated Secretariat Cabotage Unit.
“The Unit will develop clear eligibility criteria and partner with 12 Primary Lending Institutions to facilitate access to the fund.
