The Federal Government has shortlisted 11 banks to disburse $350 million in cabotage funds after the inauguration next week of the special committee set up for the purpose.
The Cabotage Vessel Financing Fund (CVFF) is an intervention fund specifically created to help develop indigenous shipping capacity in Nigeria.
The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Bashir Jamoh, revealed the move during the Ministerial Media Briefing organised by the Presidential Communications Team at the Presidential Villa, Abuja, on Thursday.
He said the money to be disbursed was sourced from 2 per cent contribution by indigenous ship owners from every contract executed in the nation’s waters.
The NIMASA DG explained that the disbursement of the CVFF is backed by the provisions of Section 42(1)-(2) of the Cabotage Act 2003, enacted to promote the development of indigenous ship acquisition capacity by providing financial assistance to Nigerian operators in domestic coastal shipping.
Jamoh said the disbursement of the funds will not only enhance the local shipping business but also assist in creating jobs for the over 2041 Nigerian Seafarers trained by the Agency under the National Seafarers Development Programme (NSDP).
He disclosed that NIMASA has trained about 2041 Seafarers in various institutions overseas, and of these number, over 800 have secured jobs with shipping companies abroad.
He regretted that those trained cannot be employed in Nigeria because of the absence of ships and the non-disbursement of the Cabotage Vessel Financing Fund which he said has made it difficult for indigenous players to enter into the shipping business meant to absorb the NSDP cadets.
Jamon stated: “We are unable to retain them here due to the absence of fleets to provide jobs for them in Nigeria after their training overseas.
“One vessel can employ up to 40 of them. The shipping business is capital-intensive. Thus government need to give helping hands to potential ship owners. We need them to feed into our own system if the fleets are available.”
Jamoh disclosed that since 2007, several Ministers of Transportation and heads of NIMASA had promised to disburse the CVFF to empower indigenous ship owners to acquire vessels but were unable to do so.
While vowing to break the jinx, Jamoh declared: “If there is a jinx about the CVFF, I am going to break it by getting it disbursed to deserving Nigerians.
“If these funds are disbursed, the President Muhammadu Buhari administration and the Federal Ministry of Transportation will take credit, while it remains a legacy in your administration.”
The NIMASA boss disclosed that efforts are on to exit Nigeria from war risk Insurance imposed on shipments of goods into the country.
He said Nigeria has to exit such charges because of the safety recorded in the Gulf of Guinea, adding that efforts had begun to ensure that shipments of goods and services to Nigeria from Europe no longer attract such risks.
Naming the risks faced by the country as“War risk insurance, insurance on the valuables in the ship and personnel insurance for workers in the ship,” he said: “These are the three key elements which we ought not to be paying, as they are responsible for 90% increase in prices of goods and services imported into Nigeria.
“They have commended NIMASA for the security recorded in the Gulf of Guinea and we are waiting for the report from the Lloyds of London and very soon, we hope to exit these insurance.”
On NIMASA’s achievements, he disclosed that the agency remitted N30billion into the federation account in the first half of 2022, adding that security in the Gulf of Guinea had been largely aided by the Deep Blue Project.
According to him, “the Gulf of Guinea has recorded zero attacks since the last quarter of 2021 to date.
“He have not experienced any attacks in Nigeria since the last quarter of 2021 to date which was why they have removed us from the piracy list,” he affirmed.
The DG added: “Under the Deep Blue Project, the agency acquired two specials mission vessels, three specials mission helicopters, 16 armoured vehicles that can enter the creeks, two special mission aircrafts, 17 special interceptors, four unmanned air surveillance, for data transmission for possible intervention; 600 specially trained forces to respond to threats on the high sea.”
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11 banks shortlisted to disburse $350m cabotage funds ― NIMASA
11 banks shortlisted to disburse $350m cabotage funds ― NIMASA
11 banks shortlisted to disburse $350m cabotage funds ― NIMASA
