NIMASA: Maritime operators to get $700m funding for vessel acquisition

The Nigerian Maritime Administration and Safety Agency (NIMASA) have said that operators in the maritime sector will get about $700 million to purchase ships.Information Guide Nigeria

The director-general of NIMASA, Bashir Jamoh said this when he spoke at the maiden annual lecture of the Institute of Maritime Studies, University of Lagos.

THE CABLE reports that the annual lecture was themed, ‘From crude to blue — Nigeria’s blue economy: the imperative of maritime domain awareness and good governance’.

Jamoh said that about $700 million has been set aside for the cabotage vessel financing fund (CVFF).

He revealed that the fund aims to support indigenous ship acquisition capacity and to provide financial assistance to domestic coastal shipping operators.

According to THE CABLE, he said: “On the issue of increasing jobs, we are about to commence the disbursement of the cabotage vessel financing fund. The total exposure of the CVFF is within the region of $350 million and this amount is 50 percent of NIMASA control.”JAMB Result

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“By the guidelines, the primary lending institutions will provide 35 percent and shipowners will have to provide 15 percent, making 50 percent in total.

“If we have $350 million as a 50 percent contribution to NIMASA, then we are accepting another $350 million from the primary lending institutions and that means $700 million.”

“With $700 million, we are set to give a maximum of $25 million each to shipowners to purchase ships which will directly or indirectly provide jobs.”

Jamoh also disclosed that the Nigerian National Petroleum Corporation (NNPC) Limited recently expressed interest in participating in the financing of ships that Nigerian shipowners would acquire using the soon-to-be distributed CVFF.JAMB Portal

the NIMASA boss said, “The NNPC agreed to offer them 9 percent so that the shipowners will only have to source for only 6 percent.”

“NNPC said it needs ships to lift Nigerian crude and that it will give Nigerian shipowners the specifications of ships to buy. It will also give them 9 percent out of the 15 percent of the funding that was supposed to be provided by the shipowner.NYSC Portal

“They said they will take over the ship and provide the cargo until it recovers the amount invested in the acquisition of the ships.”

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