- NIMASA, NNPC Shipping propose 6.5% interest
The disbursement of Cabotage Vessel Finance Fund (CVFF) has been stalled by a one percent difference in the interest rates as the approved banks insisted on 7.5 percent interest while the Nigerian Maritime Administration and Safety Agency (NIMASA) pushed for 6.5 percent.
NIMASA Director General, Dr. Bashir Jamoh revealed this on today, during a meeting with the new Managing Director of Nigerian National Petroleum Company (NNPC) Shipping Limited, Mr. Ponas Gliatis and the President of Nigerian Chamber of Shipping (NCS), Mr. Aminu Umar at the agency’s headquarters in Lagos.
Jamoh, while receiving the new NNPC Shipping boss, noted that apex maritime agency had several meetings with former management of NNPC Shipping with the company agreeing to take up 9 percent out of 15 percent reserved for ship owners.
The NIMASA Director General encouraged the new NNPC Shipping boss to continue from the milestones already reached with his predecessor.
Jamoh equally hinted that all issues relating to CVFF disbursement could be addressed within the next six months, even as he promised to fully acquaint the Minister of Marine and Blue Economy, Adegboyega Oyetola with the deliberations on the fund.
“NIMASA and NNPC Shipping has made tremendous progress with regards to CVFF disbursement but there was a disagreement when the Primary Lending Institutions (PLIs) insisted on collecting 7.5 percent interest but NIMASA and NNPC said we can only do 6.5 percent. I believe that with the arrival of a new NNPC MD, we can take up these discussions for speedy conclusion. It is also gratifying to have NNPC Shipping develop interest as offtakers for CVFF.”
“It is sad that shipping contributes less than one percent to the Gross Domestic Product (GDP) of Nigeria. Shipping contributes to over 7 percent to Singapore’s GDP and Nigeria is targeting to surpass that 7 percent. With the vast experience of the new MD of NNPC Shipping, Mr. Ponas Gliatis, I believe that were can surpass 7 percent GDP contribution,” the NIMASA boss said.
Speaking with News Diet on the sidelines, the President of NCS, Aminu Umar, expressed delight at the 6.5 percent interest on CVFF, stating that it is the best fiscal instrument obtainable in Nigeria’s tough fiscal environment.
“NIMASA Director General is like the custodian of CVFF and if he says the timeline is six months then we should believe him. I’m sure that this is a timeline that he intends to meet. Looking at the 6.5 percent interest that NIMASA is pushing, it is a very good rate because you can’t get something cheaper from anyone Nigerian bank,” Umar said.
On his part, the Managing Director of NNPC Shipping, Mr. Ponas Gliatis assured NIMASA and the maritime community that the shipping company will play a collaborative role in addressing the shipping challenges in the nation.
Gliatis specifically reassured the NIMASA boss that NNPC Shipping will offer strategic seatime opportunities to contribute to the nation’s seafarers development.
While Gliatis was accompanied to the meeting by the Executive Director, Coastal Shipping, NNPC Shipping, Hajia Hafsatu Mohammed; the Director General of Nigerian Chamber of Shipping, Mrs. Vivian Chimezie-Azubuike attended the meeting with the NCS President.