Reps panel: Disbursing vessel acquisition funds will boost maritime jobs

The house of representatives committee on maritime safety, education and administration says the disbursement of the cabotage vessel financing fund (CVFF) will boost jobs in the maritime sector.

Uduak Odudoh, acting chairman of the committee, spoke while pledging full support for the decision during an oversight visit to the headquarters of the Nigerian Maritime Administration and Safety Agency (NIMASA) in Lagos.

On April 15, Adegboyega Oyetola, minister of marine and blue economy, directed NIMASA to commence the process for the disbursement of the cabotage vessel financing fund.

Oyetola said the directive marks a significant shift from over two decades of administrative stagnation and ushers in a new era of strategic repositioning of Nigeria’s indigenous shipping.

According to a statement on Thursday by Osagie Edward, head of public relations at NIMASA, Odudoh said the agency’s reforms under the leadership of Dayo Mobereola, its director-general (DG), were repositioning Nigeria’s maritime industry for global relevance.

“I want to commend NIMASA and the federal ministry of marine and blue economy for steps taken to disburse the CVFF which has been a challenge for over 20 years. This will translate to job creation for the maritime sector in Nigeria,” the lawmaker said.

“The DG and his team have succeeded in maintaining no piracy in Nigerian waters and this translates to better image for Nigeria. We are supporting Nigeria’s quest to seek election into category C at the IMO and hopefully we will win.

“We are committed to work, collaborate with NIMASA, collaborate with the ministry of marine and blue economy, for the success of this present government and the success of Nigeria.”

‘GUIDELINES STREAMLINED TO SPEED UP ACCESS TO FUNDS’

Responding, Mobereola appreciated the committee’s visit and pledged the agency’s continued cooperation with the legislature.

He noted that the minister’s directive on the CVFF disbursement was being implemented.

“We are acting in accordance with the directive of the honourable minister to ensure indigenous shipowners finally have access to this critical funding,” the DG said.

“The guidelines have been streamlined based on the Minister’s approval, so beneficiaries can access the funds this year.”

The statement said that to manage the $700 million intervention fund efficiently, NIMASA has expanded the number of primary lending institutions (PLIs) from five to 12, as banks will play a key role in risk assessment, ensuring that only credible, financially capable shipping firms benefit from the revolving fund.

NIMASA said the funding model will see banks contribute 35 percent, NIMASA 50 percent, and the remaining 15 percent as equity from the shipowners.

Also, Mobereola said the involvement of banks would ensure financial discipline and sustainability, which he said are crucial for the fund to continue long-term.

The DG said NIMASA is creating a win-win scenario by providing “access to finance and access to business”.