Lagos, Jan. 25, 2023 – The five primary lenders in the disbursement of the $350 million Caboge Fund have been given 72 hours to draw up modalities for the disbursement of the fund.
Bashir Jamoh, the Director-general of Nigerian Maritime Administration and Safety Agency (NIMASA), gave the directive to the banks at a meeting in Lagos on Tuesday.
The banks are UBA, Jaiz, Zenith, Polaris, and Union Bank.
He said that the modalities should include interest rate, tenure, collateral and requirements needed to access the fund in line with the global standards as the funds would be in foreign currencies.
Jamoh said that the primary lenders could not disburse without stakeholders’ engagement.
“Therefore, the stakeholders’ engagement starts today.
“We are on track, we have started with the PLIs and all the five of them are here today.
“We have listened to them and they listened to us and from all indications, they are ready for us as well,” he said.
Jamoh said the banks must come up with a collective decision and standard template for the disbursement of the fund.
He said that ship-owners must be notified once the banks had concluded plans on the guidelines, citing that guidelines would adhere to the best practices.
The Fund is to assist Nigerian ship owners to buy new ships or refurbish existing onea.
The fund was introduced in 2004 and contributed from 2% deductions from the valued of every contract awarded under the Cabotage regime.
Ship owners are expected to access it in order to afford the purchase of new vessels and at the same time, maintain the existing ones.
The Cabotage Fund is under the management of the Nigerian Maritime Administration and Safety Agency (NIMASA), while the fund is being warehoused at the Central Bank of Nigeria (CBN).
President Muhammadu Buhari gave approval for disbursement of the fund on Dec.11, 2022. (GBN)
