$700m CVFF Fund: Maiguwa Urges NIMASA to Review Guidelines, Conduct Market Research for Shipowners

By DAPO OLAWUNI

Frontline maritime expert and President of Maritime Security Providers of Nigeria (MASPAN) Mr Emmanuel Maiguwa has urged the Nigerian Maritime Administration and Safety Agency (NIMASA) to do due diligence in conducting market research before disbursing the controversial $700million Cabotage Vessel Financing Fund (CVFF).

Maiguwa also said there was need for NIMASA to put mechanism in place that will enable a swift review of the existing guidelines in order to ensure that shipowners are not frustrated.

In statement sent to DAILY TREND on Monday, Maiguwa commended the progress made on the CVFF, and the recent directive by the Minister of Marine and Blue Economy, Adegboyega Oyetola for immediate disbursement of the fund.

“It is about time we opened the fund to allow growth in the maritime industry.

“I will encourage the government to prepare and make provisions to be flexible on the guidelines. That is to say, put a mechanism in place that will enable a swift review of the guidelines should the first phase of implementation reveal problems for either the government or shipowners, so as not to derail the efforts made in the implementation.

“I am saying this because we have all been referencing the NCDMB model. It is not precisely like the NCDMB model because NIMASA cannot provide a significant or strong market guarantee.

“It is far easier for NCDMB to protect its funds by ensuring its borrowers have contracts of engagement for the assets they secure, in contrast to NIMASA, which has a limited role in the O&G sector.

“Since I have not yet seen the study on market prospects and priorities, I will encourage the government to enhance communication engagement with parties to gain a better understanding and provide more insight.

“I am sure private companies have conducted their market research and have some insight (market intel) on where to go and what type of vessel to acquire in the near and long term. But these market intelligence often exist in silos for the benefit of competition.

“However, when these strategies and investments converge in a larger context, they alter the dynamic of advantage for the entire market and the country.

“The government should possess market intelligence on the broader market to inform its decisions and share with investors. I hope that has been done or will be done at least”