Over $100 million already accrued into the Cabotage Vessel Finance Funds
Nigeria’s apex maritime regulatory authority, the Nigerian Maritime Administration and Safety Agency (NIMASA), has asserted that the over $100 million already accrued into the Cabotage Vessel Finance Funds (CVFF) was strictly meant for Nigerian shipowners.
The position of the agency came on the heels of speculation in some quarters that some highly-placed individuals had started positioning themselves by registering some nebulous special purpose vehicles (SPV) that would enable them access the accrued CVFF fund.
THISDAY checks revealed that some of the lobbyists, who are top politicians, have been jostling to avail themselves of what they considered as a “national cake” through their associates in the maritime sector of the economy. Some of these associates are used by the top politicians as fronts to grab the juicy loan.
Already, the management of the agency is under pressure to disburse the funds to the cronies of those close to the corridors of powers.
Director General of NIMASA, Mr. Ziakede Akpobolokemi, who dropped the hint in a chat in Lagos said the management of the agency would resist pressures to give the fund that has so far accrued into CVFF to those who are not qualified to access it.
“No Nigerian politician, under whatever guise and no matter how highly placed, would be allowed to access CVFF”, he vowed.
He maintained that the CVFF, which is a loan syndication scheme dedicated to empower Nigerian shipowners under the Coastal and Inland Trade Act 2003, would be given only to those who are qualified to do so.
Akpobolokemi, who was appointed one year ago as the NIMASA helmsman, vowed that he would resist any pressure to disburse the funds to those who may not use it for what it was originally meant for. “Politicians see the funds as a bonus and I have resisted all manner of pressure to disburse the funds so far”, he said.
He pledged to personally get involved in the process of disbursement to ensure that the money does not get into the hands of opportunists.
“Everybody is scrambling for the money but we are carefully scrutinising all applications. I shall personally inspect the facilities and other logistics of all the intending beneficiaries to ensure that those who eventually get the loans use them for the purpose they are meant for”, he declared.
He said he would not completely leave the disbursement process to the four banks, which have been appointment to administer the funds without interference.
“What happens to the loans if any of the banks go under? NIMASA will then be left alone to carry the loss in the event that the beneficiaries are not properly screened to ascertain the genuineness of their purpose”, he said.
He appealed to the intending beneficiaries to exercise patience as the agency was doing all what it takes to ensure that the loan scheme does not go the way of the previous efforts when huge sum of money loaned out under the Ship Building and Ship Acquisition Funds (SBSAF) could not be recovered.
He explained that the delay in disbursing the loan was further necessitated by the position of members of the Indigenous Ship Owners Association of Nigeria (ISAN) who maintained that their problem was not the craze to access the funds but how to get the cargo.
The association stated that if its members should collect the loans and have no cargo to carry, it may be difficult to repay the money.
He explained that ISAN Chairman, Chief Isaac Jolapamo, had argued that the pre-occupation of genuine shipowners was how to secure regular job and not to get a loan he may not be able to pay back due to lack of cargo to carry.
According to the NIMASA Director General, it was against this background that the management of the agency was taking its time in disbursing the loan, if those who really need it said they wanted job security first before thinking about how to secure the loan.
THISDAY checks revealed that over $100 million (N15.3 billion) had so far accrued into the fund since the cabotage regime became operational about eight years ago. The fund is the derivative of the 3 per cent of the contract sum made by cabotage vessel and payable to NIMASA.
Though many commercial banks, especially the new generation ones, jostled to manage the funds, only four were eventually appointed as the Primary Lending Institutions (PLI). They are Diamond Bank Plc, Skye Bank Plc, Fidelity Bank Plc, and Equitorial Trust Bank (ETB) Plc.
So far, no fewer than 100 firms have applied to the authorities to access the funds.
Source: This Day
