8th April, 2013
As the Nigerian Maritime Administration and Safety Agency (NIMASA) prepares to disburse the long-awaited Cabotage Vessel Financing Fund (CVFF) this month, investigations by P.M.NEWS BusinessWeek reveal that the plan may be jettisoned over the refusal of the four selected banks to provide their own quota.
The banks are believed to be playing hide and seek because they were allegedly not satisfied with the zero coupon interest rate, which was fixed at 5.6 per cent.
Former Director, Cabotage Services in NIMASA, Boniface Igwe confirmed the development saying that the financial institutions were the only party delaying the disbursement of the first batch payment of the CVFF to indigenous shipping companies.
According to him, the CVFF which is currently with Fidelity Bank Plc, Sterling Bank Plc, Skye Bank Plc and Diamond Bank has hit N40 billion.
Igwe said that the CVFF agreement indicated that NIMASA will bring 50 per cent, banks 35 per cent and the principal (beneficiary) 15 per cent, with pay back credit facility put at 5.6 per cent.
He said that the banks claimed that the 5.6 per cent interest rate is too low for them, demanding that they want the interest rate to be at par with the stipulated interest rate at 17 per cent or 22 per cent.
The former director also confirmed to our reporter that NIMASA was ready for the CVFF disbursement, but the financial institutions apathy towards the CVFF agreement is the only snag hindering the fund release.
—Esther Komolafe-Hassan