NIMASA commended for transparent process to disburse CVFF
By: Bisi Akingbade
The Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh, has been lauded for the display of transparency and steadfastness in the process currently being carried out to disburse the Cabotage Vessel Financing Fund (CVFF) since the approval was given by the federal government.
Commending NIMASA, members of the Nigerian Shipowners Association (NISA), Ship-Owners Association of Nigeria (SOAN) and maritime lawyers stated in separate interviews that they were pleased with the efforts of NIMASA so far.
Members of NISA and SOAN who would not want to be named for obvious reasons, said they were pleased with the seriousness and speed with which the NIMASA DG has treated the issue since the Minister of Transportation, Alhaji Muazu Sambo conveyed President Muhammadu Buhari’s approval for the disbursement of the fund.
The shipowners expressed their happiness that the DG NIMASA and his team have been able to hold different meetings with both the banks and the stakeholders so far on the process.
They said that during the meetings, the NIMASA displayed enthusiasm and honesty of purpose in ensuring that the fund is disbursed.
Similarly, a maritime lawyer, Mr Kasarachi Opara, described the steps taken so far by Jamoh as commendable and reassuring, adding that the decision of this administration to give out cabotage fund to indigenous shipping operators, though belated, should be applauded and Kudos given to the Buhari led federal government for taking that bold step unlike the past administrations.
Opara however expressed concerns on the implementation of the necessary guidelines by the designated banks as required by the apex maritime body.
He said, “ I must commend the present DG of NIMASA for his outstanding performance that has raised the hope of practitioners in the industry.
“ My concern is more on the implementation of these processes by the designated banks. It is one thing giving an order and another thing implementing the order given.
“ Nigerian commercial banks are not best of friends when it comes to loans because they make the loans practically impossible for beneficiary to pay back, because of their high and unreasonable interest rates and so many other charges attached to the same loan which largely contribute to failures in repaying loans generally.
“ There should be a standard and reasonable requirement of what stands as acceptable collateral to cut across board for designated banks”.
Opara advised NIMASA to come up with a “technique to ensure strict compliance with the laid down procedures for disbursement by the banks and repayment of the loan by the beneficiaries to actualize the set objectives of the government so that there will not be any repeat of SASBF experience”.
He however commended the NIMASA DG on the whole process, saying he has demonstrated determination to disburse the fund.
According to him, NIMASA needs to be commended for the steps so far taken, adding that Jamoh has shown commitment considering the momentum put in the whole process.
He said that the DG has met with the five banks where he demonstrated body language showing clearly that his agency is ready to disburse the fund.
"NIMASA has even let the banks know that they should not introduce unnecessary collateral that will scare the benefitting shipping companies. Yet, Jamoh did not stop there, he made it clear that government does not want the mistake of the past to be made, so the fund when given will be paid back," Opara said.
Jamoh recently met with the five banks, including Union Bank, Jaiz Bank, Zenith Bank, Polaris Bank and United Bank of Africa (UBA) as part of the efforts to disburse the CVFF.
The apex maritime agency had during the meeting with the banks cautioned against unnecessary collaterals that will be difficult for the shipping companies to provide.
However, Jamoh made it clear that the government wants to avoid the mistake of the past in which some of those who benefitted from the Ship Acquisition Fund and Ship Building Fund (SASBF) could not repay the loans.
Jamoh made it clear that the federal government is desirous to disburse the fund as soon as possible.
Jamoh also said that the 50 percent counterpart funding is in dollars when the banks requested that the shipowers should provide 50 percent counterpart funding.
Jamoh said, ”We don’t want a situation where the banks will be asking for the father and mother of the ship owners and other collaterals that may make the prospective beneficiaries of the funds get scared.”
The NIMASA DG however explained that what the agency expects the banks to come up as harmonized procedure for the disbursement include .the interest rate, tenor, collateral and other necessary requirements.
He added that the interest rate to be charged should be in line with international best practices since the CVFF would be given to the banks in foreign exchange.
He added that the interest rate to be charged should be in line with international best practices since the CVFF would be given to the banks in foreign exchange.
He explained that the government could not have gone ahead to disburse the fund without necessary meeting with stakeholders, including the banks.
