The Director-General of Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside has stated that a single digit interest facility for the maritime industry is meant to help in the procurement of maritime assets to put operators in a position to compete favourably with their foreign counterparts.
Peterside said that the visit of the management of the Bank of Industry to NIMASA is a sign that the single digit interest loan campaign is about to yield fruit.
Peterside stated this when he received the BOI delegation in Lagos last week, saying the meeting with NIMASA was a follow up to the agency’s efforts to ensure that Nigerian players are competitive in the global maritime arena.
“We have continuously sought partnerships that would grow our industry. We know that maritime asset financing is one of the major challenges of this industry and we are tackling it head-on. In no distant future our people would be able to reap the benefits of our strategy,” he said.
Speaking during the visit, the Managing Director of BOI Olukayode Pitan commended the NIMASA management led by Dakuku for its various transformative initiatives in the maritime sector. He said the initiatives had brought renewed confidence in the maritime industry and BOI was ready to partner with NIMASA because the viability of the sector would rub off on the entire economy.
The BOI managing director disclosed that it had an existing financing model in partnership with the Nigerian Content Development and Monitoring Board (NCDMB), which could also benefit the maritime sector if applied.
He stated, “We are proposing a partnership with NIMASA on vessel financing. We already have a similar partnership with NCDMB that is currently running at a single digit of 8%, with little or zero risk for NCDMB since the fund invested by NCDMB is guaranteed by BOI. This model, we think, can also benefit NIMASA and the entire maritime sector.”
At the end of the meeting, NIMASA and BOI agreed, among other things, to work out modalities on financing the acquisition of vessels at a single digit interest rate; provision of guarantee for the funds that NIMASA will entrust to BOI; and management of the portfolio to guarantee effectiveness.