The Nigerian Maritime Administration and Safety Agency (NIMASA), has revealed plans to disburse over $100 million Cabotage Vessel Financing Fund (CVFF), to local ship owners at a single digit interest rate.

The CVFF is a new initiative approved by the government this year, to encourage indigenous ship owners to participate in domestic and international shipping trade.

The Minister of Transportation, Rotimi Amaechi (photo), made this known at a parley for stakeholders in Ship and Maritime Infrastructure Financing, organized by the Nigerian Ship Finance Conference and Exhibition (NISFCOE) in Lagos.

According to him, major challenges being faced by ship owners in the country can be attributed to the lack of debt facility from Nigerian banks and high-interest rates.

He said funds from the CVFF and other counterpart contribution from the financial institutions would help drive down the interest rate for ship owners interesting in acquiring vessels with the fund.

“We are determined to disburse CVFF according to the law and according to regulation. We would match the CVFF fund with some money coming from the financial institutions. This will crash the rate of borrowing. We are passionate about disbursing CVFF to bring our own funds to come almost at the cost of nothing and match it with their own fund coming at the rate of 25%. The rate would crash from 25 percent to a one digit interest rate. CVFF is lying at the Central Bank of Nigeria under TSA arrangement, we are working hard to disburse it, and it is over a hundred million dollars,” Amaechi explained.

Anita Fatunji