Change of Administration Will Not Affect CVFF Disbursement, Assures Ademola Adegoroye
NEW NIMASA HEADOFFICE
• As Jamoh speaks on fortunes of blue economy
By Our Correspondent
The Minister of State for Transportation, Prince Ademola Adegoroye, on Tuesday assured that the disbursement of the Cabotage Vessel Finance Fund (CVFF) would not be affected by the change in administration in case the fund is not disbursed under the regime of President Muhammadu Buhari.
Adegoroye spoke just as the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh OFR, spoke on the potentials of the nation’s blue economy.
The minister who spoke on the occasion of the maiden Annual Lecture of the Institute of Maritime Studies (IMS), University of Lagos (UNILAG), said everything is being done to ensure CVFF is disbursed in the next eight weeks, but added that nothing will change even if the disbursement was not possible within the time of the present administration.
He said, “I can assure you that the government will do everything that will make it easy for shipowners to get more ships so that we can continue to grow out blue economy. We are hoping and praying that the CVFF will be disbursed within the next eight weeks, but if it doesn’t work, we also expect that because government is a continuum, the incoming government, which is also an APC government will continue from where we have stopped”.
Jamoh in a paper titled, “From Crude to Blue – Nigeria’s Blue Economy: The Imperative of Maritime Domain Awareness and Good Governance,” also assured that every effort is being made to disburse the CVFF before May 29.
He explained that each beneficiary is expected to get $25 million from the fund to acquire a vessel, adding that this will help in boosting the indigenous shipping sector in terms of job creation.
He disclosed that the Primary Lending Institutions (PLIs) have been directed to provide loan at a low interest rate of single digit.
“With the capacity of the ship, it can provide 71 direct jobs. When you divide 25 by 700, how many ships can you provide under the government’s guidance on ship financing? So you see the number of jobs the CVFF alone can provide. You can imagine if each ship produced 200 direct and indirect employment, the amount of jobs shipowners can provide. So, the issue of lack of employment in the country, definitely, blue will have to provide it, if we are serious.”
“We are on the last lap for CVFF disbursement. We have consulted with the PLIs and have engaged a consultant. It is out target that this loan will not be business as usual. We insisted that it must be one single digit loan. There are many grey areas like administrative charges, tenure from the bank and others. This is what our consultant and the lending institutions are trying to harmonize and agree on a position.”
“Once the consultant submits the report, it will be passed to the supervising ministry. If they are comfortable with it and they approve, the next thing is disbursement. So, I still believe and hope that we are going to disburse the fund before the end of this administration”.
On Nigeria’s blue economy, the NIMASA DG said it was huge and bigger than the oil and gas industry in the country.
According to him, NIMASA is making every effort to exploit Nigeria’s share of the global blue economy which he said is valued at over USD2.5 trillion.
He disclosed that this effort at exploiting the blue economy has started with the establishment the IMS in six universities across the six geographical zones .
The NIMASA boss also expressed concern that Nigeria has been losing billions of Naira as a result of the absence of bunkers.
He said, “Warri refinery was set up as some point to provide bunkers for ships in the country but unfortunately that refinery isn’t working. We need to explore this business from the legitimate aspects.”
By Our Correspondent
The Minister of State for Transportation, Prince Ademola Adegoroye, on Tuesday assured that the disbursement of the Cabotage Vessel Finance Fund (CVFF) would not be affected by the change in administration in case the fund is not disbursed under the regime of President Muhammadu Buhari.
Adegoroye spoke just as the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh OFR, spoke on the potentials of the nation’s blue economy.
The minister who spoke on the occasion of the maiden Annual Lecture of the Institute of Maritime Studies (IMS), University of Lagos (UNILAG), said everything is being done to ensure CVFF is disbursed in the next eight weeks, but added that nothing will change even if the disbursement was not possible within the time of the present administration.
He said, “I can assure you that the government will do everything that will make it easy for shipowners to get more ships so that we can continue to grow out blue economy. We are hoping and praying that the CVFF will be disbursed within the next eight weeks, but if it doesn’t work, we also expect that because government is a continuum, the incoming government, which is also an APC government will continue from where we have stopped”.
Jamoh in a paper titled, “From Crude to Blue – Nigeria’s Blue Economy: The Imperative of Maritime Domain Awareness and Good Governance,” also assured that every effort is being made to disburse the CVFF before May 29.
He explained that each beneficiary is expected to get $25 million from the fund to acquire a vessel, adding that this will help in boosting the indigenous shipping sector in terms of job creation.
He disclosed that the Primary Lending Institutions (PLIs) have been directed to provide loan at a low interest rate of single digit.
“With the capacity of the ship, it can provide 71 direct jobs. When you divide 25 by 700, how many ships can you provide under the government’s guidance on ship financing? So you see the number of jobs the CVFF alone can provide. You can imagine if each ship produced 200 direct and indirect employment, the amount of jobs shipowners can provide. So, the issue of lack of employment in the country, definitely, blue will have to provide it, if we are serious.”
“We are on the last lap for CVFF disbursement. We have consulted with the PLIs and have engaged a consultant. It is out target that this loan will not be business as usual. We insisted that it must be one single digit loan. There are many grey areas like administrative charges, tenure from the bank and others. This is what our consultant and the lending institutions are trying to harmonize and agree on a position.”
“Once the consultant submits the report, it will be passed to the supervising ministry. If they are comfortable with it and they approve, the next thing is disbursement. So, I still believe and hope that we are going to disburse the fund before the end of this administration”.
On Nigeria’s blue economy, the NIMASA DG said it was huge and bigger than the oil and gas industry in the country.
According to him, NIMASA is making every effort to exploit Nigeria’s share of the global blue economy which he said is valued at over USD2.5 trillion.
He disclosed that this effort at exploiting the blue economy has started with the establishment the IMS in six universities across the six geographical zones .
The NIMASA boss also expressed concern that Nigeria has been losing billions of Naira as a result of the absence of bunkers.
He said, “Warri refinery was set up as some point to provide bunkers for ships in the country but unfortunately that refinery isn’t working. We need to explore this business from the legitimate aspects.”
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