By Godwin Oritse
as NIMASA, banks set for disbursement
THE Cabotage Vessel Financing Fund,CVFF, of the Nigerian Maritime Administration and Safety Agency, NIMASA, has hit a total of $169 million, equivalent of N25.4 billion, as at September 2012.

Disclosing this in Lagos recently, NIMASA’s Director-General Mr. Patrick Akpobolokemi, said that the agency has also concluded plans to commence disbursement of the fund, adding that all that was needed was for the Minister of Transport to give approval for the disbursement.

Akpobolokemi explained that the law regulating the use of the fund has also been modified just as recommendation with regards to disbursement have also been received from the banks.

The agency’s boss, however, decried some challenges that NIMASA is currently facing some of which include weak synergy among relevant agencies, inadequate technical manpower and limited funding to invest in critical maritime infrastructure.

Already, NIMASA has sent out  a notice spelling out the criteria for application for the fund issued out to members of the Indigenous Shipowners Association of Nigeria, ISAN, and other investors in the nation’s shipping industry.

The agency said all verifiable ship owners, ship agents and fully established companies with ability to charter vessels could apply for not more than $25 million (N3.92 billion). Investors are also required to provide evidence of the type of vessels they intend to acquire with the fund.

The CVFF, meant to assist in empowering indigenous shippers in the areas of ship acquisition, maintenance and other relevant investments, is administered by NIMASA under the Coastal and Inland Shipping (CABOTAGE) Guidelines 2006, which established and set up the procedures for the administration of the fund.

NIMASA said: “Ship owners must at least own one classed vessel with P&I coverage and must have fully structured shipping company, which is verifiable and registered with NIMASA.

“The vessel must be wholly Nigeria-owned and must have five years operational work experience.”

For shipping companies and agents, the agency recommended “ability to charter vessels, with the charterers being Nigerians and proof of having husbanded at least 10 vessels within the last three years.”

A major challenge that the agency may face in disbursing the fund is the  huge number of intending beneficiaries that want  access the fund.

A senior official at the Ministry of Transport,who craved anonymity, said the amount which started on a zero level has accumulated to over N18 billion (about $130 million), pointing out that officials of the ministry have  agreed on modelities for disbursing the money.

The fund was generated from the three per cent levy on cabotage operations collected by NIMASA..

The Cabotage Act 2003 was designed to develop local capacity and grow the indigenous shipping industry.

He said the Act established the CVFF to help increase indigenous tonnage operating in the domestic water transportation services of the maritime sector and to assist the growth of local ship building and repairs.

“By the end of December 2010, 285 vessels were registered by the Nigerian Ship Register Office making a total of 1,371 with a gross registered tonnage of 1.9 million tonnes.

Therefore, the intervention projects, such as Maritime Policy Advisory Group (MAPAG) and the Nigerian Maritime Data Bank need to be implemented urgently. The maritime data bank would serve the data needs of the industry in West and Central Africa,” the official said.

But the image maker of NIMASA, Hajia Lami Tumaka, said the Director-General of the agency is doing everything possible to enable legitimate beneficiaries have equal access to the fund.