NIMASA Meets Banks, Demands Harmonised Procedures for CVFF Disbursement
DR. JAMOH
By Our Reporter
The Director-General of the Nigeria Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh and key management staff of the agency on Tuesday met with five Primary lending institutions (PLIs) as part of the efforts to disburse the Cabotage Vessel Financing Funds ( CVFF).
Among the banks whose representatives attended the meeting were Union Bank, Jaiz Bank, Zenith Bank, Polaris Bank and United Bank of Africa (UBA)
Jamoh told the banks to provide within 72 hours harmonized procedures for the disbursement of the fund.
The NIMASA DG however cautioned the banks against introducing collaterals that will be difficult for the shipowners to meet.
According to Jamoh, it was the intention of the federal government to ensure that the CVFF is disbursed as soon as possible.
But he also said the federal government would not want to run into the same mistakes that characterized the Ship Acquisition and Ship Building Fund in the past.
On the request of one of the banks that the shipowners should provide 50 percent guarantee, the DG said 50 percent counterpart funding from the agency was in dollars and would be sent to the banks.
Jamoh said, ”We don’t want a situation where the banks will be asking for the father and mother of the ship owners and other collaterals that may make the prospective beneficiaries of the funds get scared”
During the meeting, an official from Polaris Bank who is the bank’s Head of Enterprise, Femi Aribaloye, had expressed concerns on the risks the banks would be exposed to considering the turbulent nature of the shipping industry.
He said, “Whatever it is that we needed to do in terms of structure and interest will be carried out, but I think the ultimate or the most important thing here is to ensure that this thing is successful and that’s why we are here and that’s why this particular fund is now being disbursed in collaboration with the bankers.
”We are also very much aware of the environment in which we operate, we know things can be a little bit turbulent, and policies and the economic situation might change so, I just want to find out since its also within the purview of the Ministry of Transportation, if there is anything that can be done to further minimize the risk that the PLIs are going to be carrying.
” We look at the chance of the possibility of a partial guarantee because as financial institutions, we would like to ensure that everything is done rightly.” .
The NIMASA DG however explained that what the agency expects the banks to come up as harmonized procedure for the disbursement include .the interest rate, tenor, collateral and other necessary requirements.
He added that the interest rate to be charged should be in line with international best practices since the CVFF would be given to the banks in foreign exchange.
He explained that the government could not have gone ahead to disburse the fund without necessary meeting with stakeholders, including the banks.
He had last week told newsmen about the meeting with stakeholders beginning with the banks as PLIs on Tuesday .
He had also said that after this, the agency would also be meeting stakeholders in the shipping industry.
He told newsmen during the meeting, ” We are on track, we have started with the PLIs and all five of them are here today. We have listened to them and they listened to us and from all indications, they are ready for us as well.
“What we want them to do now is to allow them to come up with a collective decision and that cannot take more than 72 hours.
“As we are leaving this boardroom, they will sit down and decide on a date because we don’t want them to come individually to us with their own interest rate, we want them to have a consensus and a standard template on the disbursement of funds as well as the interest rate.
” This is what we advised them to do and as soon as they finish that, we will then invite the shipowners,” .
Ends.
The Director-General of the Nigeria Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh and key management staff of the agency on Tuesday met with five Primary lending institutions (PLIs) as part of the efforts to disburse the Cabotage Vessel Financing Funds ( CVFF).
Among the banks whose representatives attended the meeting were Union Bank, Jaiz Bank, Zenith Bank, Polaris Bank and United Bank of Africa (UBA)
Jamoh told the banks to provide within 72 hours harmonized procedures for the disbursement of the fund.
The NIMASA DG however cautioned the banks against introducing collaterals that will be difficult for the shipowners to meet.
According to Jamoh, it was the intention of the federal government to ensure that the CVFF is disbursed as soon as possible.
But he also said the federal government would not want to run into the same mistakes that characterized the Ship Acquisition and Ship Building Fund in the past.
On the request of one of the banks that the shipowners should provide 50 percent guarantee, the DG said 50 percent counterpart funding from the agency was in dollars and would be sent to the banks.
Jamoh said, ”We don’t want a situation where the banks will be asking for the father and mother of the ship owners and other collaterals that may make the prospective beneficiaries of the funds get scared”
During the meeting, an official from Polaris Bank who is the bank’s Head of Enterprise, Femi Aribaloye, had expressed concerns on the risks the banks would be exposed to considering the turbulent nature of the shipping industry.
He said, “Whatever it is that we needed to do in terms of structure and interest will be carried out, but I think the ultimate or the most important thing here is to ensure that this thing is successful and that’s why we are here and that’s why this particular fund is now being disbursed in collaboration with the bankers.
”We are also very much aware of the environment in which we operate, we know things can be a little bit turbulent, and policies and the economic situation might change so, I just want to find out since its also within the purview of the Ministry of Transportation, if there is anything that can be done to further minimize the risk that the PLIs are going to be carrying.
” We look at the chance of the possibility of a partial guarantee because as financial institutions, we would like to ensure that everything is done rightly.” .
The NIMASA DG however explained that what the agency expects the banks to come up as harmonized procedure for the disbursement include .the interest rate, tenor, collateral and other necessary requirements.
He added that the interest rate to be charged should be in line with international best practices since the CVFF would be given to the banks in foreign exchange.
He explained that the government could not have gone ahead to disburse the fund without necessary meeting with stakeholders, including the banks.
He had last week told newsmen about the meeting with stakeholders beginning with the banks as PLIs on Tuesday .
He had also said that after this, the agency would also be meeting stakeholders in the shipping industry.
He told newsmen during the meeting, ” We are on track, we have started with the PLIs and all five of them are here today. We have listened to them and they listened to us and from all indications, they are ready for us as well.
“What we want them to do now is to allow them to come up with a collective decision and that cannot take more than 72 hours.
“As we are leaving this boardroom, they will sit down and decide on a date because we don’t want them to come individually to us with their own interest rate, we want them to have a consensus and a standard template on the disbursement of funds as well as the interest rate.
” This is what we advised them to do and as soon as they finish that, we will then invite the shipowners,” .
Ends.
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