NIMASA Targets 28 Vessels Acquisition with $700m Cabotage Fund
In a bid to create a bigger value chain and grow the local shipping industry, the Federal government through the Nigerian Maritime Administration and Safety Agency, is targeting the acquisition of about 28 vessels with a total of $700million through the Cabotage Vessel Financing Fund, CVFF.
Minister of State for Transport Mr. Ademola Adegoroye while speaking at the Maiden annual lecture of the Institute of Maritime Studies at the University of Lagos, said that the government will do everything possible to make it easier for Ship owners to acquire more ships with a view to growing the Blue Economy initiative.
Adegoroye also said that the ministry is working hard to ensure that the CVFF is disbursed before the end of the current administration.
He explained that if paraventure the Fund is not disbursed, the next All Progressive Congress, APC, government will disburse the Fund as government is a continuum.
“The fisheries sub-sector is another area the government is working very hard to create jobs for our people and make water transport easier for Nigerians.
“Absolutely, that is what every responsible government would do but I can assure you that the Government will do everything to make it easier for Ship owners to get more ships so that we can continue to grow our Blue economy. It makes sense for every responsible government to do that, once it gets too expensive, it becomes a problem and even for our economy.
“We are hoping and praying that we disburse the Fund before the end of the current administration, we have barely eight weeks, but I know they are working day and night to achieve this.”
Similarly, Director General of NIMASA, Dr. Bashir Jamoh in his lecture said the agency already has a total of $350million as its contributions to the Fund while the Primary Lending Institutions, PLIs and local ship owners that wants to benefit from the Fund will contribute 35 percent and 15 percent respectively so as to acquire the targeted number of vessels.
Jamoh also said that from his calculations, a total of $700million is expected to be expended on the acquisition adding that the loan will be given at a single digit rate.
According to the agency boss, the number of jobs that will be created by the time the entire acquisition is completed, cannot be over emphasized.
He said: “Besides using the Blue Economy to drive local shipping growth, the initiative will also awaken the nation’s dying marine insurance sub-sector.
“The Blue Economy initiative is everybody’s business as the benefits will also be for everybody. The ocean is a way of life, we need to exploit it in a sustainable manner for our economic benefits.
