Chief Isaac Jolapamo, Chairman BOT of NISA
Anxiety Grips Indigenious Shipowners As Banks Prepare CVFF Modalities

….Anything Above 1% Interest Rate Not Acceptable-Jolapamo

Fred Omotara, Lagos
As the 72 Hours deadline given to the Primary Lending Institutions (PLI’s) to come up with modalities for the disbursement of the $350m and N16bn Cabotage Vessel Financing Fund (CVFF) draws to an end, indigenous ship owners are begining to get anxious over what terms will be reeled out by the five commercial banks.
Recall that the Nigerian Maritime Administration and Safety Agency (NIMASA) on Tuesday gave the five Primary Lending Institutions (PLI’s), namely Zenith, Polaris, United Bank of Africa (UBA) Jaiz and Union banks 72 Hours to come up with modalities for the disbursement of the CVFF. The modalities are to include the interest rate, tenure, collateral and requirements needed to access the fund.
Speaking with kadecommunicationng exclusively, Chairman of the Board of Trustee for Nigerian Shipowners Association (NISA), Chief Isaac Jolapamo explained that everybody is waiting to see what the banks will reel out as modalities.
According to Chief Jolapamo, “Of cause, there is a law guiding the disbursement of the CVFF. We don’t expect the banks to go out of the guidelines.
“Under the guideline, the maximum that any company can take from the CVFF is $25m. So, there is a guideline for disbursement
“However, where there will be issues is the interest rate. There is no law that pegs it to any amount for commercial banks. But we won’t accept anything two digit.
“Under standard practise, the interest rate is always one digit. I don’t think shipowners will accept anything from 2 digit above.
“But let’s wait for the banks to come out with their modalities. NIMASA gave them 72 Hours. Let wait for them. We don’t need to pre-empt them.”
Also speaking with kadecommunicationng, another ship owner who is also a member of NISA said that many are waiting to see what the banks will draw up as modalities.
“Whatever they come up with will determine whether the fund will be disbursed or not. For some of us, the conditions that will be attached to the disbursement by the banks will go a long way in determining whether we will apply or not,” the ship owner who wouldn’t want his name in print told kadecommunicationng
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