NIMASA Appoints Banks to Handle Fund

The Nigerian Maritime Safety and Administration (NIMASA) has appointed four banks to handle the agency’s Vessel Acquisition Fund which has peaked at $66 million from the base of $48 million a year ago.

The Agency is also set to begin the training programme it has evolved for repentant militants in the Niger Delta, and the clean-up of the beaches around the country.

NIMASA Director General Mr. Temisan Omatseye, at an interactive session with journalists in Lagos said that in the bid to implement the cabotage law and to assist Nigeria ship owners who have lost out of the nation’s maritime trade, the agency would soon begin the disbursement of the $66 million accumulated vessel funds.

He however said that so far application for the utilisation of the fund has climbed up to $1 billion wondering how it will go round the applicants.

He said: “The Cabotage Vessel Finance Fund (CVFF) has grown from $48 million in July 2009 to over $66 million in June 2010 representing a 37.5 per cent increase. Arrangements for the administration of the CVFF have reached advanced stage and the first tranche of disbursement would be concluded shortly; through the four banks which were carefully selected to act as Primary Lending Institutions (PLIs) for the fund. These are Diamond, Skye, Fidelity and Equatorial Trust Banks”.

Omatseye said that local ship owners had been highly disadvantaged in the maritime trade as most all national cargoes are shipped in and out of the country by foreign flagged ships. He said despite the provision of the law that require that 50 per cent of federal , state, local government goods be given to Nigeria flagged ships at the moment this is not being complied with.

He said that the various levels of government in the country  import rice, fertilisers and other goods that are carried by foreign flagged ships at the detriment of the local ship owners.

He said of the huge amount of crude leaving the country on daily basis and the high level importation of petroleum products the indigenous ship owners are left out of the business thus impoverishing the nation while enriching other countries.

He said that NNPC and the various levels of government in the country while planning their shipment should learn to comply with the existing law which gives local flagged ships 50 per cent of Nigeria maritime business. This he said is necessary to encourage indigenous ship owners and the development of the Nigerian maritime industry.