The African Shipowners Association has said that the disbursement of the Cabotage Vessels Finance Fund at a single-digit interest rate would create abundant growth opportunities for the maritime industry.
The group, in a statement on Sunday by its President, Capt. Ladi Olubowale said the move would also boost capacity building, local content, and develop Nigeria as a maritime nation in Africa.
Last week, the Federal Government directed the Nigerian Maritime Administration and Safety Agency to commence the process that would lead to the long-awaited disbursement of the CVFF.
Olubowale described the involvement of Nigerian banks in the disbursement of the fund as a perfect strategy that would bring about transparency and the elimination of dubious borrowers.
“This disbursement would unlock a lot of things as Nigerians would own ships and more opportunities for Nigerian flagships to trade and compete in the coastal waters of Nigeria and Africa, which is already dominated by foreign vessels,” Olubowale.
Olubowale commended the Minister of Marine and Blue Economy, Adegboyega Oyetola, for directing NIMASA to commence the processes for the disbursement of the fund.
According to him, the directive also showed that the current administration is working towards building the nation, “thus complementing the efforts of the Nigerian National Petroleum Corporation Limited in the development of the downstream and upstream sectors of the nation’s petroleum industry.”
He pointed out that many developed nations, such as Japan, China, and Indonesia, have export funds for ship development, and banks are also involved in ship funding.
Olubowale mentioned that most banks in Nigeria do not have specific desks for maritime, stressing that by partaking in the CVFF disbursement, this lapse would be corrected and desks would be created for the maritime industry.
He reiterated that involving banks is a welcome development and a perfect strategy, stressing that without banks, it will be free money for everyone.
Olubowale underscored the need for things to be done in line with international best practices.
“CVFF is an opportunity for ship ownership, and all processes and conditions must be met. Bank involvement now would stop the failure of experience as there would be a committee to check and scrutinise all intending borrowers,” Olubowale.
Olubowale, who is also the Managing Director of Seamate Maritime Integrated Services Limited, noted that a lot needs to be put in place for a seamless disbursement of the fund, adding that disbursement is just one part of it; readiness, execution, and implementation have to be connected from end to end.
He said that the association is made up of companies that own and operate ships that trade not only in Nigeria but also in intra-African trade.
The association’s president said members of the group are licensed by NIMASA and their vessels are adequately certified by the International Maritime Organisation Regulations and Classification Society standards.
He added that the association has a database of all its members who trade and where the cargos are being carried out, extensive studies, and advocacies to identify where they are.
