Eromosele Abiodun
Shipping consultants yesterday in Lagos blamed the Nigerian Maritime Administration and Safety Agency (NIMASA) poor regulatory framework and banks stringent circumstances for the persistent delays within the cabotage vessel financing fund disbursements.
The consultants, who spoke on the annual summit of the Shipping Correspondents Association of Nigeria (SCAN), mentioned that regulatory uncertainty continues to drive up funding prices, severely discouraging long-term monetary commitments wanted to construct a strong home maritime fleet.
The consultants highlighted that Nigeria’s maritime sector urgently requires a secure and clear operational framework to thrive.
A Maritime Lawyer, Founding Partner, AOL, and former President, Nigeria Bar Association, Dr Olisa Agbakoba, mentioned regulatory uncertainty will increase funding prices and discourages long-term financing.
To restore investor confidence and unlock vital funding, Agbakoba known as for constant enforcement of maritime rules, clear administrative procedures, clearly outlined institutional tasks, and a predictable system for administering relevant waivers.
Agbakoba mentioned that with out proactive intervention from the company, indigenous operators will proceed to lose profitable alternatives in coastal commerce to international rivals.
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 atmosphere can guarantee well timed disbursements and empower native shipowners to drive the nation’s maritime financial system.
Also, he said that, “Banks and institutional traders should develop into lively companions in growing 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 must be tailor-made to every vessel’s industrial circumstances. A vessel supported by a reputable long-term constitution contract carries a special danger 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’t rely principally on public financing. He added that public financing ought to assist viable initiatives and mobilize non-public capital, not substitute for a functioning industrial delivery market.
“The Fund ought to complement industrial financial institution lending, growth finance, non-public funding, and cargo-backed financing. Its administration requires clear eligibility standards, rigorous credit score evaluation, applicable collateral, clear danger 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 wrestle to draw capital. Without credible operators and efficient safety, lenders will hesitate. Without regulatory certainty, traders 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 elementary 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, introduced a vital appraisal of native industrial banks and current fund constructions, arguing that present financing fashions fall brief 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 vital points to the fore, the United Bank for Africa (UBA), Regional Manager, Apapa, Nelson Edoye, known as for structured partnerships throughout sectors.
“The gap requires deliberate partnership within the financial sector and the maritime stakeholders,” Edoye famous.
He mentioned: “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
