The Nigerian Maritime Administration and Safety Agency (NIMASA) has invited Deposit Money Banks (DMBs) licensed by the Central Bank of Nigeria (CBN) and both local and foreign Development Financial Institutions (DFIs) to express interest in becoming accredited Primary Lending Institutions (PLIs) for the disbursement and implementation of the Cabotage Vessel Financing Fund (CVFF).
In a public announcement, NIMASA explained that the CVFF was established under Section 42 of the Coastal and Inland Shipping (Cabotage) Act 2003 to strengthen indigenous ship acquisition capacity. The Fund is designed to provide financial assistance to Nigerian operators engaged in domestic coastal and inland shipping, with disbursements governed by the 2006 CVFF Guidelines.
NIMASA stated that accredited PLIs would be responsible for several critical tasks, including collaborating with the agency to determine Risk Acceptance Criteria for loan applicants, structuring financial exposure for the CVFF and PLIs, and participating in counterpart financing for specific transactions. They will also handle loan monitoring, repayment management, and assume the full credit risk of all transactions. Additionally, PLIs will provide financial advisory and ancillary services deemed necessary by the CVFF.
Interested institutions must meet specific requirements, including verifying applicants’ ability to provide a minimum equity contribution of 15% of the credit facility request and committing to contribute at least 35% as counterpart funding at a weighted average single-digit interest rate.
Eligible financial institutions are required to submit three copies of their Expression of Interest to the Director-General of NIMASA at the agency’s headquarters, located at 35 Adetokunbo Ademola Street, Victoria Island, Lagos. The deadline for submission is Tuesday, December 3, 2024, at 2:00 PM.
The checklist of eligibility documents is available on NIMASA’s official website. For further inquiries, interested parties can contact the CVFF Secretariat Cabotage Unit via phone or email.
NIMASA’s initiative is expected to enhance indigenous shipping capacity and strengthen the nation’s maritime sector by reducing reliance on foreign vessels and fostering economic growth. The agency emphasized its commitment to developing a sustainable and competitive maritime industry through the effective implementation of the CVFF.