Samson Echenim 
The Nigeria Indigenous Shipowners Association (NISA), has launched a shipping line, in a deliberate strategy to access the $750 million Cabotage Vessels Financing Fund (CVFF), which disbursement to qualified shipowners begun recently.
The Minister of Marine and Blue Economy, Adegboyega Oyetola recently ordered the custodian of the CVFF, the Nigerian Maritime Administration and Safety Agency (NIMASA) to disburse the fund which has remained unaccessed about 22 years after its establishment by the Coastal and Inland Shipping Act, 2003.
NIMASA has since begun the process of disbursing the fund, inviting shipowners who qualify for the loan to apply with their own 15% equity contribution.
In order to qualify for the fund, NISA has floated its Ocean Transport Limited (NOTL), which it said was set to commence operations with two vessels.
At the inauguration of the 6-member board members, the Chairman of NISA Board of Trustees, Chief Isaac Jolapomo, disclosed that the company’s board comprises two members of the association’s BoT, two NISA executives and two NISA members.
Jolapamo noted that the association had attempted to establish this company on two other occasions in the past but expressed confidence that the new company under the leadership of Sonny Omatseye, would do well.
Jolapamo said: “This is the third time we are attempting this and we have chosen people who have integrity. We chose two members from the NISA BoT – Sir. Sonny Omatseye and Mr. Tunji Brown. They were also part of the executives at a point when the association was at its strongest. We chose two present executives – President Sola Adewunmi and General Secretary, Jibril Rowaye because they are our leaders that we elected. We also chose two members Paul Jegede and Emeka Obiogbulu.
“Your responsibility is to drive this company in a manner that it will see it start generating profits for the association. The tenure is 3 years for the BoT members while 6 years applies for the executives and general members.”
Speaking after the inauguration, the Chairman of the new shipping line, Sunny Omatseye disclosed that the new company hope to get funding from the CVFF.
He said the new shipping firm intended to acquire two vessels – a 30,000 tons tanker and an LPG vessel.
Omatseye expressed confidence that the company would get patronage from the Nigerian National Petroleum Corporation Ltd. and the Nigerian Liquidified Natural Gas, NLNG.
“Actually, what the association has decided is that nobody is having the majority share. It’s for all members of the shipping industry. People are welcome to join the association and our intention is to see how we can provide our ship and take more of the foreigners off our coast,” he said.
“We are also looking at the Cabotage Vessel Financing Fund, CVFF and other financing bodies too for funding. We expect that the Nigerian Shipowners will be the first group to be considered for the CVFF when disbursement commences.”
Speaking further he said, the issuance of waivers to foreign shipowners was a major problem but noted that NIMASA was also looking at the issue of waiver.
He also disclosed that the Minister for Marine and Blue Economy, had assured that the issue of waivers would be addressed because President Bola Tinubu was looking at how to streamline shipping operations so that Nigerians could participate fully.
“If the waiver issue is looked into, I think most of the foreigners will move out and leave the industry for Nigerians,” he noted.
The CVFF was established by the Coastal and Inland Shipping Act, 2003 to empower local shipowners and help them build up operational capacity by providing them single-digit long term loans to acquire vessels for cabotage ttrade.
After 22 years, the fund has not been accessed by those it is meant for. This is the first time any serious attempt is being made to make the fund available to shipoweners in the country, signalling that the Bola Tinubu administration appears resolute in making the fund available to shipowners in order to develop the largely untapped local shipping industry.
