… as legislators assures of support
The Nigerian Maritime Administration and Safety Agency (NIMASA) has pledged to disburse the long awaited Cabotage Vessel Financing Fund (CVFF) this year.
This is just as the House of Representatives, through its Committee on Maritime Safety, Education and Administration, gave an assurance of full support to NIMASA to achieve this directive issued by the Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola.
Speaking during an oversight visit to NIMASA, the Acting Chairman of the Committee, Hon. Uduak Odudoh, expressed satisfaction with the Agency’s progress and commended the leadership of the Director General, Dr. Dayo Mobereola, for the ongoing reforms that are repositioning Nigeria’s maritime industry for global relevance.
“I want to commend NIMASA and the Federal Ministry of Marine and Blue Economy for steps taken to disburse the CVFF which has been a challenge for over 20 years. This will translate to job creation for the maritime sector in Nigeria.
“The DG and his team have succeeded in maintaining no piracy in Nigerian waters and this translates to better image for Nigeria. We are supporting Nigeria’s quest to seek election into category C at the IMO and hopefully we will win. The DG told us that NIMASA is domesticating a record 56 conventions in one fell, swoop. This is fantastic. The global maritime community will see us as a serious maritime nation.
“We are committed to work, collaborate with NIMASA, collaborate with the Ministry of Marine and Blue Economy, for the success of this present government and the success of Nigeria”, he declared.
The Director General of NIMASA, Dr. Dayo Mobereola, welcomed the delegation and expressed appreciation for the cordial relationship that exists between the Agency and the House Committee. He lauded the Committee’s role in shaping governance and policy direction for the maritime sector, noting that such oversight and support are crucial to the Agency’s continued success.
He confirmed that the Minister’s directive on the CVFF disbursement is a fait accompli.
“We are acting in accordance with the directive of the Honourable Minister to ensure indigenous shipowners finally have access to this critical funding. The guidelines have been streamlined based on the Minister’s approval, so beneficiaries can access the funds this year”.
To manage the $700 million intervention fund efficiently, NIMASA has expanded the number of Primary Lending Institutions (PLIs) from five to 12. These banks will play a key role in risk assessment, ensuring that only credible, financially capable shipping firms benefit from the revolving fund.
The funding model will see banks contribute 35 per cent, NIMASA 50 per cent, and the remaining 15 per cent as equity from the shipowners themselves.
“By involving the banks, we are ensuring financial discipline and sustainability, which are crucial for this fund to continue long-term”, Mobereola explained.
“We are creating a win-win scenario; access to finance and access to business”, he added.