NIMASA's Cabotage fund attracts single digit interest rate

The Nigerian Maritime Administration and Safety Agency (NIMASA) Cabotage Vessel Financing Fund (CVFF) is to attract a single digit interest rate.

Disclosing this in Abuja earlier in the week, Transport Minister, Senator Idris Umar said that all was set for the disbursement of the fund adding that only six applicants are said to have successfully passed screening processes by both the banks and the ministry.

The minister who spoke at the presentation of the mid-term achievement of the present administration also disclosed that the repayment time for the loan is seven years.

Although,there has been some level of anxiety by stakeholders over the disbursement of the fund following the delay that has characterised the disbursement.

Umar explained that NIMASA will provide 50% of the fund percent and take 4.3% percent interest, the four banks namely Sterling Skye Diammond and  Fidelity, will provide 35% percent and take 5.7% percent interest, the beneficiary will provide the balance of 15% percent.

It was gathered that the minister has forwarded the screened applicants to the Presidency for approval for disbursement

It would be recalled that NIMASA had on two occasion promised to disburse the fund to the beneficiaries but this promise was never kept.

It will also be recalled that a section of the maritime industry had accused the managers of the fund of purposely delaying the disbursement because some people were  allegedto be  trading with it.

It was also said that some of the appointed Primary Lending Institutions (PLIs) are not in a hurry to disbursement the fund that has risen to over nN30billion because they are also trading with the money.

The Director-General of NIMASA Mr. Patrick Apkobolokemi had said the money will only be given to genuine Nigerian ship operators adding that no politician under whatever guise and no matter how highly placed would be allowed to access the Cabotage Vessel Financing Funds.