COVID-19: Indigenous ship-owners secure one year BoI loan moratorium

Following the effect of the COVID-19 pandemic on shipping, the Bank Of Industry (BOI) in conjunction with the Nigerian Content Development and Monitoring Board (NCDMB) has offered a one year loan moratorium to indigenous ship-owners in Nigeria.

Disclosing this in an exclusive interview with the Nigerian Tribune in Lagos, President of the Ship Owners Association of Nigeria (SOAN), Dr. McGeorge Onyung stated that the one year loan moratorium includes a reduction of the interest payable on loans acquired by indigenous ship-owners from 10 per cent to 6 per cent.

According to the SOAN President, “In a recent meeting that we held with the NCDMB leadership, we were able to find out that the content management agency has already directed the Bank Of Industry (BOI) to give indigenous ship-owners moratorium for one year. Part of the agreement includes a reduction of our loan interest from 10 per cent to six per cent.

“We are not resting on our oars as we are already looking forward to dialogue with the National Petroleum Investment Management Services (NAPIMS) and other agencies to see what we can negotiate for our members. We are also looking at negotiating with the Central Bank of Nigeria (CBN) to get possible incentives for shipping in Nigeria.

“The effect of the COVID-19 pandemic has been devastating on indigenous shipping in Nigeria and we will be looking at all possible options to look for incentives or bail-out for our members.”

Recall that the indigenous ship owners, in a recent chat with the Nigerian Tribune, had revealed that some operators were among the over 40 vessels laid off from charter by major oil companies over the COVID-19 pandemic

“In a situation where we don’t even have enough vessels, and we are being laid-off by the oil companies, it’s painful because these vessels have huge loan obligation on them. We have various overhead cost and many of those vessels have huge interest accruing on their loans.

“If you noticed, since the COVID-19 pandemic broke out, every sector of the economy has been shutting down, but shipping has not. This is because over 90 per cent of global trade is done through shipping. For the world to survive the pandemic, it is important that shipping business continues to be engaged. Shipping is the driver of global economy.

“So you can imagine the implication of the lay off by the oil firms on indigenous operators. If the sector does not get attention in this pandemic trial period, it may collapse,” the ship-owners had lamented earlier in the year when the COVID-19 pandemic broke out.

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