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House of Reps Approves $360M CVFF Disbursement

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The Nigerian Maritime Administration and Safety Agency (NIMASA) has received approval from the House of Representatives to disburse the $360 million Cabotage Vessel Finance Fund (CVFF) to qualified Nigerian shipowners.

 

The decision was reached following an investigation chaired by Hon. (Barr.) Legor Idagbo.

 

In its report, the committee acknowledged that due process had been followed in the planned disbursement of the CVFF.

 

The fund, established in 2003 by the Coastal and Inland Shipping Act, aims to develop indigenous ship acquisition capacity and provide financial assistance to Nigerian shipping operators.

 

During the investigation, NIMASA and the Ministry of Transportation were requested to provide detailed information on the total amount accrued to the fund and the disbursements made since its inception.

 

Osagie Edward Assistant Director, Public Relations, NIMASA disclosed this in a press statement dated June 2, 2023.

The report reads “The Committee requested the Nigerian Maritime Administration and Safety Agency and the Ministry of Transportation to provide detailed information on the total amount accrued to the Fund and disbursements since inception.

 

“The Committee met with the Minister of Transportation and the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA) on Thursday, 11 May 2023 to find out about the details concerning the matter.

 

“After a thorough analysis of the various submissions, coupled with the explanations given by the Ministry and NIMASA, the Committee discovered that due process was followed in the planned disbursement of the Cabotage Vessel Finance Fund.

 

“The Committee notes that the Cabotage Vessel Finance Fund (CVFF) is a fund that was set up in 2003 by the Coastal and Inland Shipping Act. The fund was established to develop indigenous ship acquisition capacity and to provide financial assistance to indigenous shipping operators.

 

“The Committee further notes that there is a lack of capacity amongst indigenous/ Domestic Coastal operators in Nigeria, thus the reason Nigerian National Petroleum Corporation Limited (NNPC) still awards contracts to foreign shipping companies in contravention of the Cabotage and Nigerian Oil and Gas Industry Content Development (NOGICD) Acts. Some of these awards have been previously investigated by the Committee, which led to their cancellation.

 

“It was also discovered that the total funds of $360m in the Cabotage Vessel Finance Fund (CVFF) account with the Central Bank of Nigeria (CBN) represents 50%, while the remaining counterpart funds of 50% is from stakeholders and banks, which is 15% and 35% respectively”.

 

The committee commended the NNPC for its commitment to awarding shipping contracts to indigenous companies that have demonstrated the capacity to execute them successfully. This move aligns with the objectives of the Cabotage regime promoted by NIMASA.

 

Dr. Bashir Jamoh, the Director General of NIMASA, expressed gratitude to the House of Representatives for their interest in verifying the due process followed by the Agency.

 

He emphasized that NIMASA remains committed to transparency in all aspects of its operations and expressed optimism that the NNPC’s decision to prioritize indigenous companies would strengthen the Cabotage regime.

Dr. Jamoh also called for increased stakeholder support, highlighting that the CVFF has the potential to benefit more Nigerians, contribute to the growth of per capita income and the Gross Domestic Product (GDP) through the development of the maritime industry.

 

The disbursement of the CVFF to qualified Nigerian shipowners marks a significant milestone for the implementation of the Cabotage regime and is expected to bolster the indigenous shipping sector in Nigeria, fostering economic growth and enhancing national capacity in the maritime industry.

Maritime

NIMASA Makes Dockworkers Registration Compulsory

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The management of the Nigerian Maritime Administration and Safety Agency (NIMASA) has advised International Oil Companies, terminal and jetty operators, and all other companies involved in stevedoring in the country to refrain from engaging unregistered dockworkers.

The information was contained in a statement made available to Biztellers by the Head, Public Relations, NIMASA, Osagie Edward.

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According to the statement, all stakeholders, including dock labour employers and stevedoring companies, are encouraged to apply for new operating licenses or renew expired ones within a 30-day moratorium period.

“This requirement,” it added, “is stipulated by the NIMASA Act of 2007 and outlined in the NIMASA Stevedoring Regulations of 2014, which mandates strict compliance from all maritime operators.”

Osagie cited the Director General, NIMASA, Dr. Dayo Mobereola as laying emphasis on the need for stakeholders to comply with extant laws and regulations.

Dr Mobereola said, “No terminal or company shall continue to engage the services of unregistered dockworkers for cargo handling at their work locations.

“This move is part of our broader effort to ensure safe and regulated operations within Nigeria’s maritime industry. Compliance with these regulations will enhance our ability to maintain an up-to-date database of dockworkers operating in the country. It also improves our planning processes, as we are committed to developing their capacity to meet globally accepted standards for dockworkers in Nigeria. We intend to enforce full compliance after the moratorium period.”

It was gathered that the NIMASA Act, 2007, Part IX, Section 27, addressed the registration of Dockworkers with focus on Maritime Labour.

“It ensures the Registration, Regulation, and control of Maritime Labour, including dockworkers. The Act assigns the Agency the responsibility of maintaining standards in accordance with international best practices,” Osagie added.

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Maritime Diplomacy: Nigeria Seeks Election Into IMO Council

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Nigeria has expressed a strong desire to seek election into Category “C” of the International Maritime Organization (IMO) Council.

The Honorable Minister of Marine and Blue Economy, Adegboyega Oyetola, made the disclosure at the 2024 World Maritime Day parallel event in Barcelona, Spain.

Oyetola noted that Nigeria has put in place the basic needs for the development of her maritime industry in line with recognized global best practices.

In his words, “our active participation in upholding key conventions, such as the Safety of Life at Sea (SOLAS) and the International Ship and Port Facility Security (ISPS) Code, reflects our dedication to ensuring the safety of international shipping.

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There have been no incidents of piracy in the last three years, as confirmed by the International Maritime Bureau (IMB). By deploying resources to provide maritime security assets, Nigeria has solidified its role as a key guardian of maritime security in the Gulf of Guinea.

Nigeria remains a valuable source of manpower for the industry. I therefore urge our partners to explore this potential and assist where possible in the best interest of all. Our Maritime Academy has adequate resources and facilities to support this development.

“I am pleased to announce Nigeria’s resolve to seek a Category “C” membership on the Council.

On his part, the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, assured that no stone will be left unturned to ensure success in the quest for IMO Category C membership at the next elections.

According to him, “We at NIMASA have met with the IMO technical team and have commenced work on all identified grey areas so that Nigeria can address the gaps identified during the last audit by the IMO.

”We have also commenced the process of effective communication with other member states using the IMO GSIS platform, among others. While we at NIMASA focus on the technical aspects of the preparations, our supervising Ministry will provide the political will to guide Nigeria back to the Council at the IMO.”

Oyetola, who held engagement sessions with the IMO Secretary General Arsenio Dominguez and other diplomats, was accompanied on the working tour by the Ministry’s Permanent Secretary, Mr. Olufemi Oloruntola; the Director General of the NIMASA; the Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho; the Managing Director of NIWA, Mr. Bola Oyebamiji; and the Director of Maritime Safety and Security Services, Mr. Babatunde Bombata.

This year’s parallel event with the theme: Navigating the Future: Safety First, brought together international maritime leaders and experts to discuss future challenges and opportunities, with the aim of ensuring that safety is prioritized in the day-to-day operations of the global maritime sector.

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Maritime

Why PPP Is Necessity For Nigeria’s Maritime Infrastructural Dev’t – Mobereola 

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The adoption of the Public Private Partnership (PPP) model is essential for the infrastructural development of Nigeria’s maritime sector.

This is the view of the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola.

The DG, shared his views while hosting the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Oseodion Ewalefoh.

He emphasized the importance of the Commission’s increased involvement in attracting private investors to develop infrastructural capacity in Nigeria’s maritime sector.

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Dr. Mobereola said, “We appreciate the Management of the ICRC for being responsive. However, you know that the maritime sector is capital intensive and government funds cannot solely put in place the required infrastructure. We need the ICRC to develop PPP based business models that will be attractive to the private sector both from within and outside the country.

“There is the need to streamline processes by the use of technology, as we will continue to count on the support of ICRC to help drive the Agency’s PPP projects for effective and efficient service delivery to our stakeholders”.

Lending support to Dr. Mobereola’s views, Dr. Ewalefoh, underscored the significance of the maritime sector to Nigeria’s economy.

He noted that the PPP model would facilitate increased funding and expertise from the private sector, thereby accelerating the growth and development of the Nigerian maritime sector. Additionally, he stated that the ICRC is prepared to engage with the Agency on its projects and ensure timely execution.

“There is no time to waste; our country needs lots of funding for infrastructure and we need to create an enabling environment for activities to thrive. First, is service delivery, not revenue generation, and people will be willing to pay if they get the right services”, the ICRC boss noted.

The PPP model has proven to be the most viable approach worldwide for driving government policies that promote development and economic growth.

Biztellers reports that as a regulatory agency and Nigeria’s Maritime Administrator, the NIMASA has consistently embraced collaboration and partnership through the PPP initiative to ensure the growth and development of the maritime sector.

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