Indigenous Shipowners seek loans from BOI for survival

After waiting endlessly for the disbursement of Cabotage Vessel Financing Fund (CVFF), the indigenous ship owners have turned to the Bank of Industry (BOI) for financial life line to enable them stay afloat of the crunchy economic climate which has muzzled most of them out of business.

The ship owners under the aegis of Shipowners Association of Nigeria (SOAN), appealed to the Bank of Industry to expand its intervention to the nation’s shipping industry.

This plea was contained in a communiqué at the end of a Workshop and Dinner on ‘Giving Critical Lifeline to the Nigerian Maritime Industry’ organized by SOAN and signed by the association’s President Engr. Greg Ogbeifun

The nation’s shipping sector is currently experiencing cash crunch as a result of the harsh economic situation in the country and this has led to about 60 per cent of indigenous shipping firms operating in the downstream oil and gas sector of the economy been liquidated with most vessels at seaside along CMS, Snake Island and Sea School taken over by banks due to indebtedness of the owners to various financial institutions in the country.

Shipowners are said to be indebted to banks huge non-performing loans to the tune of N5 billion accrued from ship purchases and financing.

As the Cabotage Vessel Finance Fund is yet to be disbursed by NIMASA, the association is seeking a fresh refinancing model and asked the BOI to intervene to save the nation’s shipping sector.

The communiqué reads, “That the Bank of Industry (BOI) expands its fund catering to the maritime industry in general, and Shipowners in specific.”

The association also sought that, the Nigerian Maritime Administration and Safety Agency (NIMASA) should adhere strictly to all clauses in the Cabotage Act before allowing foreign vessels operate on nation’s water;

“That the requirements contained in the Cabotage Act be strictly adhered to in assessing foreign vessels operating in Nigerian waters;

“That government should review tax laws and policies applicable to the maritime industry, with a bid to providing necessary reliefs and incentives that would spur growth.”

It stated further, that, the transportation Ministry and NIMASA should quicken the disbursement of the CVFF;

“That Minister of Transportation and NIMASA take urgent steps to facilitate access to the CVFF for strategic financial support to vessel owners in order to reverse the slide in Cabotage fleet tonnage;

“That the Minister of Transportation, Honourable Rotimi Amaechi, should urgently pursue the implementation of the comprehensive report on revamping and restructuring Nigeria’s flag administration;

“That the Nigerian Maritime Administration make serious effort towards collaborating with operators and other stakeholders in the industry to promote a more conducive operating environment;

“That the Nigerian Maritime Administration rejig its policy of sponsoring cadets to various institutions outside Nigeria, and focus more on greater utilization of the Maritime Academy of Nigeria to drive local content.