NIMASA Promises to Share N331.2 Billion to Shipowners to Acquire New Ships, Create 350 Million Jobs

NIMASA Promises to Share N331.2 Billion to Shipowners to Acquire New Ships, Create 350 Million Jobs

  • The Nigerian Maritime Administration and Safety Agency's Director General, Bashir Jamoh, said it would disburse $720 million to shipowners.
  • He said the amount would enable them to build new ships and create over 300 million jobs
  • Jamoh said this at UNILAG and said each shipowner would get $25 million to acquire new ships

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The DG of the Nigerian Maritime Administration and Safety Agency (NIMASA), Bashir Jamoh, has stated that the agency is boosting the $2.5 trillion blue economy market by sharing the $720 million Cabotage Vessel Financing Fund (CVFF) with shipowners.

Jamoh disclosed this as NIMASA prepares to dole out $25 million each to shipowners to buy ships to provide about 350 million jobs available in the blue economy.

Cabotage Fund, NIMASA
President Muhammadu Buhari Credit: Karl Hendon
Source: Getty Images

Each shipowner to get $25 million

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The move is part of the stakeholders' request to increase investment in the blue economy to wade through the economic threat posed by phasing out oil.

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The Guardian reports that Jamho made the call at the University of Lagos (UNILAG) Institute of Maritime Studies' maiden yearly lecture in Lagos.

According to Jamoh, the world is working hard to phase out crude oil and the fossil fuel industry due to environmental and health concerns.

He said the Nigerian National Petroleum Company Limited (NNPC) had shown interest in funding ships to be acquired by indigenous shipowners using the Cabotage Fund.

NNPC to provide partial funding for the project

The NIMASA boss said that NNPC opted to provide 9% out of the 15% needed funding by shipowners, as stated in the guidelines for the disbursement of the fund to allow them to acquire new ships.

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He listed some of the country's assets, including the 853 km coastal line, 8573 km inland waterways, six-port complexes, 21 oil terminals, more than ten jetties, 200 nautical miles of exclusive zones, and 200 million Nigerians who are all consumers.

The NIMASA helmsman said the blue economy provides an economic growth of $2.5 trillion yearly, including all economic activities associated with landed assets

He listed opportunities in the blue economy to include cargo operations, stevedoring services, warehousing/bonded terminals, haulage, shipbuilding, repairs, and brokerage, among other jobs.

After 17 years of waiting, FG to share N145bn cabotage fund as Zenith, UBA, others Prepare for Implementation earlier reported that Indigenous shipowners in Nigeria are set to receive the first disbursement of the Cabotage Vessels Finance Fund (CVFF) from Primary Lending Institutions (PLIs).

Unless there are any last-minute changes, the disbursement will kick off on March 2023.

According to a report by Leadership, the available funds for disbursement stand at slightly over N16 billion and $350 million.


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