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By Steve Agbota
The Nigeria Shipowners’ Association (NISA) has concluded plans to refloat the association’s moribund shipping line to benefit from the long-awaited the Cabotage Vessel Financing Fund (CVFF) disbursement.
This is even as the association banks on the assurances of the government to make available the CVFF for its funding.
The association had in 2021 resolved to set up a national carrier with equity contributions from its members and also float a $500 million fund to serve as revolving loan to enable its members renew their vessel fleets. The proposed national carrier named ISAN Shipping Line was registered since 2008, and it is said to be owned by all the members of the association. The Steering Committee which was set up to revive the mandate of the association mapped out a seven-point agenda and one of it was to float $500 million maritime funds to acquire vessels and other assets.
However, the Chairman Board of Trustees of the association; Chief Isaac Jolapamo, said that there are plans by the association to join forces together as a group and approach the government for the release of a substantial amount of the CVFF. He posited that getting five per cent of the fund to revive the shipping development through the association’s shipping line is better than having 100 per cent of nothing.
He also added that NISA being the mother association of all indigenous shipowners is working on reconciling all Nigerian ship owners to maximise benefit from the CVFF.
“We have set the ball rolling. We are looking forward to having CVFF which is the beginning of everything we are talking about. The assurance that we have is that the fund will be disbursed. One of the areas we are looking at is that we join forces together and approach the government for the release of a substantial amount of this fund for a group to use. Five percent of something is better than 100 percent of nothing and that is where we want to start from.
“We are working towards reconciling everybody. This is the mother association. Once the mother association is going to get her acts right, then we believe everything will work in place. We have to push the new executives to accomplish what they need to accomplish,” he said. On his part, the Chairman of the CVFF Committee that was set up by NISA, Dr. Edward Sowho said that the association is reactivating its moribund shipping line to move cargo such as crude oil, petroleum products and others from Nigeria to other countries. According to him, the association is planning to apply for the CVFF as a shipping line, adding that this arrangement does not stop other individual members from applying.
He explained that members can apply for the fund as individuals or as Consortia with two or three people coming together.
“NISA had a shipping line before. We are only trying to reactivate it. The idea is not new. We had this idea of floating a shipping line in order to move products such as crude oil, petroleum products and others from Nigeria abroad. What we are planning to do is to apply as a shipping line. Individuals can also apply but this is the association’s own shipping line. This is not just being incorporated because of the CVFF,” he added.
