The federal government has announced a move to boost local content through the Cabotage Vessel Financing Fund which will commence in due time.
The Federal Ministry of Marine and Blue Economy will handle the innitave through the Nigerian Maritime Administration and Safety Agency (NIMASA), and the fund will come with a low-interest rate.
In a press release signed by Osagie Eward from NIMASA’s Public Relations Department, the agency’s Director General, Dr. Dayo Mobereola, shared this news today during a one-day forum for stakeholders about how the fund will operate.
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Dayo also mentioned that there will be a two-year grace period and an eight-year repayment term for the funding, which will be distributed through 12 primary lending institutions.
In his statement, he said, “I am thrilled to share that, under President Ahmed Tinubu’s guidance, and with the help of the Minister of Marine and Blue Economy, Adegboyega Oyetola, we have received the necessary approvals for the fund distribution.
“This funding will greatly benefit our industry by allowing local shipowners to compete better, increasing local content in the maritime field, creating jobs for Nigerian seafarers, and enhancing related maritime services.”
Mobereola also pointed out the importance of being open throughout the process.
“To maintain transparency and accountability, we set up a special cabotage unit, created clear eligibility guidelines, and teamed up with 12 primary lending institutions to help people access the funds.”
Aminu Umar, the President of the Nigerian Chamber of Shipping, along with other industry leaders, praised Oyetola and the NIMASA management for their work in making the fund distribution happen.
Temisan Omatseye, the former Director General of NIMASA, who once doubted the success of the fund, also joined in recognizing the efforts of the NIMASA management and the minister of marine and blue economy.