Eromosele Abiodun
Shipping specialists yesterday in Lagos blamed the Nigerian Maritime Administration and Safety Agency (NIMASA) poor regulatory framework and banks stringent situations for the persistent delays within the cabotage vessel financing fund disbursements.
The specialists, who spoke on the annual summit of the Shipping Correspondents Association of Nigeria (SCAN), stated that regulatory uncertainty continues to drive up funding prices, severely discouraging long-term monetary commitments wanted to construct a sturdy home maritime fleet.
The specialists highlighted that Nigeria’s maritime sector urgently requires a steady and clear operational framework to thrive.
A Maritime Lawyer, Founding Partner, AOL, and former President, Nigeria Bar Association, Dr Olisa Agbakoba, stated regulatory uncertainty will increase funding prices and discourages long-term financing.
To restore investor confidence and unlock crucial funding, Agbakoba referred to as for constant enforcement of maritime rules, clear administrative procedures, clearly outlined institutional tasks, and a predictable system for administering relevant waivers.
Agbakoba stated that with out proactive intervention from the company, indigenous operators will proceed to lose profitable alternatives in coastal commerce to overseas opponents.
He emphasised the necessity for efficient coordination between NIMASA and key authorities our bodies, together with the Federal Ministry of Marine and Blue Economy, the Nigerian Ports Authority (NPA), and the Nigerian Ports Economic Regulatory Agency (NPERA).
He famous that solely an aligned, clear regulatory setting can guarantee well timed disbursements and empower native shipowners to drive the nation’s maritime financial system.
Also, he said that, “Banks and institutional buyers should turn out to be lively companions in creating Nigeria’s National Fleet. This requires specialised maritime credit score experience, dependable vessel valuations, technical assessments, and sound authorized recommendation on ship mortgages, constitution contracts, insurance coverage, and cross-border enforcement.
“Financing needs to be tailor-made to every vessel’s business circumstances. A vessel supported by a reputable long-term constitution contract carries a distinct threat profile from one depending on unsure spot-market earnings.
“Commercial banks, development finance institutions, insurers, private investors, and export credit agencies should explore appropriate combinations of debt, equity, leasing, guarantees, and other financing arrangements,” he said.
According to Agbakoba, the Cabotage Vessel Financing Fund (CVFF) stays an vital instrument for supporting indigenous vessel possession, however fleet growth can not rely principally on public financing. He added that public financing ought to help viable initiatives and mobilize personal capital, not substitute for a functioning business transport market.
“The Fund ought to complement business financial institution lending, growth finance, personal funding, and cargo-backed financing. Its administration requires clear eligibility standards, rigorous credit score evaluation, acceptable collateral, clear threat allocation, efficient monitoring, and restoration preparations.
“The focus must shift from simply seeking money to acquire vessels towards developing viable transactions that connect cargo demand, suitable vessels, credible operators, and willing financiers,” he said.
“Without reliable cargo, shipowners will battle to draw capital. Without credible operators and efficient safety, lenders will hesitate. Without regulatory certainty, buyers might decline in any other case viable alternatives.
“We must therefore move beyond asking, “Where will the money to acquire Nigerian vessels come from?” and ask a extra basic query: “Where is the cargo and commercial opportunity that will make Nigerian vessels financeable?” he said.
Speaking, former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Temisan Omatseye, offered a crucial appraisal of native business banks and present fund constructions, arguing that present financing fashions fall quick of empowering native operators to compete globally.
“There is money available for this, and I keep telling people that we can never be competitive in our shipping industry because of what? Sorry, bankers may not like this. The banks in Nigeria do not have the capacity to finance shipping. One LNG tanker alone is about $250 million. Repayment cannot be less than 15 years. I’m sorry to say this again, our banks are just traders looking for short-term loans,” he said.
Commending SCAN for bringing crucial points to the fore, the United Bank for Africa (UBA), Regional Manager, Apapa, Nelson Edoye, referred to as for structured partnerships throughout sectors.
“The gap requires deliberate partnership within the financial sector and the maritime stakeholders,” Edoye famous.
He stated: “The maritime sector stays a cornerstone for financial diversification, job creation and nationwide prosperity. Yet, indigenous shipowners proceed to face the dual challenges of entry to affected person capital and regulatory complexities. Bridging this hole requires deliberate partnership between the monetary sector, regulators, and trade stakeholders.
“At UBA, with our presence in 20 African countries and global operations, we understand the capital-intensive nature of shipping and the need for innovative, de-risked financing structures. We remain committed to supporting indigenous participation in the maritime value chain through tailored financing solutions, trade facilitation, and advisory services that unlock growth and enhance competitiveness,” he said
