A $100 million (N15. 5 billion) lifeline may soon come the way of Nigerian ship owners for their capacity building, particularly ship acquisition, courtesy of two Nigerian banks- Guaranty Trust Bank (GTBank) and Ecobank.The two banks have agreed to support the maritime sector with the $100 million for ship acquisition by some Nigerian maritime firms.The banks recently agreed to provide the loan facility after series of negotiations initiated by officials of the Nigerian Maritime Administration and Safety Agency (NIMASA), which urged them to assist its capacity building drive within the nations maritime industry.The two banks have promised to provide $50 million each, which they intended to disburse as loans to the shipping companies under a single digit interest rate.Authoritative source at (NIMASA said the loans from the banks would be disbursed to the affected companies with the recommendation from the authority.The loans from the bank are expected to be paid back fully in five years, although it has 12 months moratorium period.We are going to recommend to the banks, while the banks will bear the full risk. Our recommendation shall be based on the track records of the intended beneficiaries. We negotiated with the banks for this facility, because it is part of our mandate to develop capacity in the maritime industry. We will only guide the process, and we will not guarantee any company, the source said.NIMASA had last year secured a $100 million lifeline, which came in the form of loans to some indigenous shipping companies in Nigeria. The lifeline came from Afreximbank of Egypt and it was disbursed through local banks, including Skye Bank.Besides, the loan syndication from local and foreign banks, NIMASA is also planning to disburse another $70 million to a group of maritime companies for capacity building purposes.Although the beneficiaries have been identified, Transport Minister, Alhaji Yusuf Suleiman has not given the agency the green light for loan disbursement in compliance with the relevant maritime laws. The loans would be disbursed from the nations Cabotage Vessels Financing Fund (CVFF), the value of which NIMASA has raised to over $100 million.The Executive Director, Finance and Administration of NIMASA, Mr. Niran Aderogba, confirmed yesterday, saying the banks have agreed to provide the $100 million to finance the drive, by some Nigerian shipping firms, to acquire vessels.He said their agreement was the product of negotiations with the local banks to assist the agency in its capacity building efforts within the Nigerian maritime sector.According to him, the fund will be complementary to our existing Cabotage Fund. It will also assist in furthering local capacity development in line with our core mandate, he said.
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