As the Nigerian Maritime Administration and Safety Agency, NIMASA perfects plans to disburse the $700 million Cabotage Vessel Financing Fund, CVFF as directed by the Minister, the Africa Association of Professional Freight Forwarders and Logistics of Nigeria, APFFLON has called on the Minister of Marine and Blue Economy, Adegboyega Oyetola to ensure a thorough verification of the credit ratings of the Shipowners before going ahead to disburse the fund.
In a letter addressed to the Minister, dated 30th April 2025 and signed by National President of APFFLON, Otunba Frank Ogunojemite, the association, urged the Minister to avoid the experience of the past where ship acquisition and ship building funds were mismanaged and the aim for which the funds were disbursed defeated.
Commending the Minister for his determination to change the face and the fortune of the marine and blue economy sector of the economy and for breaking the CVFF jinx in order to reposition the sector as number one economic enabler, a catalyst for job creation and foreign exchange earner for the country, APFFLON said, “Much as we applaud you for this giant step, we equally call for caution in disbursing this fund to the beneficiaries.
“This is with a view to avoiding the experience of the past where funds such as this were mismanaged and the aim for which the funds were disbursed defeated.
“While we are not against the disbursement of this fund, we however, call for the verification of the ship owners who are to benefit from this fund to ensure that they are in business and viable enough to be entrusted with such an amount of money as it’s obvious some of them are out of business and some of them moribund.
closely monitored by the ministry to ensure that the fund is channeled to the aim for which it was disbursed in the first place otherwise the rationale behind its disbursement will not be achieved.
“As patriotic citizens of Nigeria, we are concerned about the experience of the Ship Acquisition and Ship Building Fund hence we wouldn’t want a repeat of the ugly experience which had taken Nigeria many years backwards in its journey to self attainment and sustenance in the area of ship ownership. We call for due diligence, proper verification of the would-be beneficiaries and continuous follow up to ensure that the aim is not defeated.
“While we thank you once again for the many reforms that you are bringing to the sector, we assure you of our unwavering support as you steer the ship of the marine and blue economy sector to the promised land. We will cooperate with you in any way possible to build a maritime industry of our dreams. We want you to know that you have a trusted partner and ally in us and that you can always count on us.”
It will be recalled that Minister Oyetola had recently directed the Nigerian Maritime Administration and Safety Agency, NIMASA to disburse the CVFF Fund, to which NIMASA has assured that the fund would now be disbursed in August 2025 after years of failed attempts.
According to the disbursement ratio issued by NIMASA, the agency is to provide 50% of the funding, Primary Lending Institutions contribute 35%, and shipowners provide the remaining 15% as equity.
Photo: (L-R): Adegboyega Oyetola, Honourable Minister of Marine and Blue Economy and Otunba Frank Ogunojemite, National President of APFFLON.
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