Nigerian ship owners have lauded the Minister of Marine and Blue Economy, Alhaji Adegboyega Oyetola over his directive to the management of the Nigerian Maritime Administration and Safety (NIMASA) to begin the process for the disbursement of the much awaited Cabotage Vessel Financing Fund (CVFF).
Oyetola had last week directed NIMASA to kick start the process that will lead to the long-awaited disbursement of the CVFF.
Not a few analysts have opined that Oyetola’s directive marks a significant shift from over two decades of administrative stagnation and ushers in a new era of strategic repositioning of Nigeria’s indigenous shipping.
Managing Director of Starzs Marine and Engineering Limited, Engr. Greg Ogbeifun said Oyetola’s directive is a welcome development that will further spur the growth of the maritime sector of the economy.
The renowned ship owner who is the pioneer President, Ship Owners Association of Nigeria (SOAN) enjoined the government to allow due process according to the requirements of the Act to be followed.
He averred that Oyetola is acting accordingly by taking the bull by its horns through the disbursement of the fund.
His words: “The Minister’s move is extremely commendable. The important thing is that due process according to the requirements of the Act has to be followed. So, that is the summary. I think it is a very commendable step. I have looked at the marine notice that was sent out and I think it is majorly in line with the requirements of the Act.
“Even when you look at the previous guidelines, there is good reason to at least believe that the Minister is acting accordingly. But I do not know if the requirements of the Act as it relates to the legislating part of government are followed”.
Ogbeifun agreed that the directive would finally unlock the long-standing issue of disbursement of the CVFF.
The President of SOAN, Mr. Sonny Eja on his part also applauded Oyetola for the directive, saying the decision was a welcome development.
According to Eja, aside from being long overdue, partnering with the Bank of Industry (BoI) for the disbursement is another feat.
Continuing, Eja who is also the Managing Director of Petromarine Nigeria Limited said: “I would say this is a welcome development. Though it is long overdue you know like I have always said to people ‘don’t blame yourself for not doing something yesterday or for not doing something last week or last month, the best time to start is now and so it’s a welcome development and I’m equally excited at the fact that they are partnering with BOI in respect of this fund. For me, to hear that they’re going to work with BOI to disburse this fund is quite a good development, too.
“Of course, the single obligor of $25 million is okay. It is a welcome deployment as well as it would allow wherever the borrowers are going to be to adequately use this fund judiciously.”
He however enjoined the government to put measures in place that would ensure that beneficiaries put the fund to good use.
“Thirdly, I want to believe that they have set the right criteria for accessing these funds and I want to believe also that they have put in place very good measures to recover these funds so that people don’t just access these funds divert them for other purposes and then they are not able to pay back.
“Whilst we commend the minister and the federal government through Mr. President, we equally would urge whoever the beneficiaries of this fund will be to ensure that they’re put into good use so that it won’t give the industry a bad name that either ship owners or other stakeholders just access this funds and then they now become non-performing loans.
“I believe also that the equity contribution that they have put in place is okay so that there’s a commitment on the part of the borrower to know that okay, I equally have a part to play accessing these funds”, he added.
The President of the Nigerian Ship Owners Association (NISA), Mr. Sola Adewunmi, also commended Oyetola for the directive.
According to him, it is the first time a Minister would direct NIMASA to commence the process for disbursement of CVFF. With the Minister’s directive, the guidelines should be rolled out to beneficiaries to know how to access the fund.
He maintained that with Oyetola’s pronouncement, there was hope that things will just as he added that ship owners wait to see the guidelines first.
He argued that it is when the guideline comes out that it will be realistic to look at holistically.
