Latest news with #AdegboyegaOyetola
Zawya
22-05-2025
- Business
- Zawya
Nigeria: Shippers Council saves $19mln through automation of demurrage, freight rate
Nigerian Shippers' Council (NSC) has highlighted its impressive performance and called for critical policy and funding reforms at the just concluded 2025 Sectoral Retreat of the Federal Ministry of Marine and Blue Economy. The NSC's Executive Secretary/CEO, Dr. Pius Akutah, disclosed that the council saved the Federal Government over N31 billion between January and June 2024 through automation of demurrage, freight rate, and charter party verification. According to a statement ,Dr. Akutah also showcased the council's achievements, including the commissioning of the Funtua Inland Dry Port, top-ranking performance in the 2024 ICPC Ethics and Integrity Scorecard, the launch of online registration portals for port users and service providers and the development of the Trade and Transport Data Bank now nearing completion. He emphasized the need for swift passage of the Nigerian Port Regulatory Agency Bill and consistent access to statutory funding. The Minister of Marine and Blue Economy, Adegboyega Oyetola who declared the retreat open, stated that the Marine and Blue Economy sector had been placed at the forefront of the Federal Government growth agenda and that agencies must respond with measurable performance and improved service delivery. The Minister also noted several milestones achievements over the year, such as modernization of port infrastructure, steady improvement in port efficiency, progress on the National Single Window, commencement of Cabotage Vessel Financing Fund disbursement, noting that the recent approval of the National Policy on Marine and Blue Economy, marked a new phase in the sectorial development.
Zawya
24-04-2025
- Business
- Zawya
Nigeria: ‘$25mln CVFF fund won't buy a new ship'
The Ministry of Marine and Blue Economy recently announced plans to begin disbursement of the CVFF. In this exclusive interview with the President of the Ship Owners Association of Nigeria (SOAN), Mr. Sonny Eja, he spoke on eligibility for the funds and why some operators might struggle to refund: The Minister of Marine and Blue Economy, Adegboyega Oyetola recently mandated the Nigerian Maritime Administration and Safety Agency (NIMASA) to begin the process for the disbursement of the Cabotage Vessel Financing Fund (CVFF). What's your take on this? Well, first of all, I would say that it's the right step in the right direction. I recall the last time we had an interactive session with the minister at an event in Ikeja, the National Single Window event, when I had the chance to speak with him, the minister was the one that even brought up the issue of the CVFF. When he mentioned the CVFF, I told him that it's long overdue, that they should look at the playbook that was adopted by the Nigerian Content Development and Monitoring Board (NCDMB) when they had to disburse their intervention fund. And so, he said, okay, they will look at it. Frankly speaking, I thought it was one of those rhetoric's. But when we saw the marine notice from NIMASA, we then realized the minister was serious about disbursement this time around. it's a welcome development, and it's the right step in the right direction. Equally encouraging is the fact that they are going to partner with the Bank of Industry (BOI) for disbursement of this fund. That in itself is also encouraging because if they had wanted to partner with the commercial banks, then the interest portion of it would not be very favorable to ship owners or beneficiaries of this fund. The marine notice released by NIMASA indicated that each ship-owner will get at most, $25 million. What types of ships can $25 million buy? Now, in terms of whether the $25 mllion will be enough, of course, you and I know that if you want to buy a tanker today, $25 million will not be enough. However, there are different types of vessels in different areas in the industry. Let's even say that I want to get a large-size Platform Supply Vessel (PSV) today, the $25 million may not be enough for me. But even if you're not going to get a new vessel, there are fairly used vessels that one can afford to acquire. And I know that a lot of players in the industry oftentimes would embark on this type of vessels. Again, you can have one or two companies come together to acquire a new vessel. Don't forget that we have the downstream, midstream, and upstream players. We could have a group, or one or two companies that can come together, you know, to acquire new vessels. To me, that is still very okay. Aside buying vessels, what other options are available for the would-be beneficiaries of the CVFF? The other option available to the would-be beneficiaries of the CVFF is that the fund can be used for refinancing. Refinancing is when I have a vessel that is associated via loan with another bank, I can get this CVFF funding which the conditions would be favorable than the one with the other commercial bank, and use the fund to refinance the vessel attached to the other bank. That is refinancing. These are options open for ship-owners to explore. The major reason the CVFF disbursement has been delayed up till now is down to fear that the funds might be mis-used by ship-owners. Do you have such fears? I was at an event two days ago, and I said that this development is a welcome one. But there must be very strict measures put in place for people accessing these funds, so that these funds are not diverted for other purposes. I am not saying that people that would apply for this facility would be very irresponsible not to use it judiciously. That's why I am happy that the BOI is involved. We had a very successful outcome with the NCDMB intervention fund and I believe also that this is going to be very successful because measures will be put in place to ensure that the beneficiaries will be able to pay back. I don't expect people to be funny with the funds in terms of getting these funds, and then diverting it for other purposes. I believe that if you have not identified a vessel that you want to acquire, or a tanker, there's no need wanting to access the CVFF. If you don't have a valid contract, and you apply for the CVFF, how do you repay? It shouldn't be a case of, I want to just acquire this vessel, and then begin to source for a contract. How do you intend to pay back? I am confident that there will be very good and strict measures put into this to guarantee these funds. For the Ministry in partnership with BOI to come up with this, they would have taken all this into consideration to see how they can guarantee these funds. I am confident that even if people want to be funny, measures will be put in place to get these funds back. If a ship-owner does not have a valid contract, and gets the funds, how does he repay? I am not saying anybody should not be given the opportunity, but then look at the dynamics yourself. Even the commercial banks, if you approach them today that you want a loan, they will ask you, what do you want to use the loan for? We are talking about having a valid contract. if you approach the banks today, the commercial banks, and then you want to access $25million to buy a vessel, and you have a six-month contract, how do you expect that six-month contract to pay off the $25 million loan? So, having a valid contract is key. That's why I talked about refinancing. It will be tricky if people just want to access these funds without a valid contract. From the Marine Notice released, what are the criteria for accessing the funds? The Marine Notice talked about certain things like a bankable feasibility report which will be subjected to independent verification by an approved submarine lending institution. Again, because the funds are held in NIMASA, the beneficiaries must provide minimum equity contribution of 15 per cent. So, if you are trying to access $25million, you have to come up with about $3.7million as your equity contribution. So, it means you must have that liquidity. You must also be able to pay all the prescribed fees. You must equally satisfy the funds managerial and operational ability. Those are things that they've put in place already. Again, you must be able to provide evidence of contribution to the fund. This means that you must have been contributing to that fund for quite some time now, which, of course, is the 2 per cent capital tax that has been deducted from your receivables on a month-to-month basis when your client pays you. So, if you have not been contributing to the fund, you have no business wanting to come and access this fund because you cannot reap where you did not sow. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
11-04-2025
- Business
- Zawya
Oyetola lauds APM Terminals' planned $500mln investment in port operation in Nigeria
The Minister of Marine and Blue Economy, Adegboyega Oyetola, has commended APM Terminals for its renewed commitment to invest $500 million in expanding port operations across Nigeria. Speaking while receiving a delegation from APM Terminals in Abuja, Oyetola welcomed the company's pledge, describing it as a model worthy of emulation by other terminal operators in the country. 'We are pleased with the quality of infrastructure that APM Terminals has delivered at the Lagos Port Complex, Apapa. The standard you have set should be the minimum benchmark for other terminal operators across the country,' the Minister said. He stated that the proposed $500 million investment must align with the Federal Government's agenda to modernise the Western ports and boost competitiveness, adding that the Eastern ports would also benefit from a comprehensive upgrade. Oyetola reiterated the government's resolve to deepen the draft levels at Lagos ports to a minimum of 16 metres, which, according to him, will accommodate larger vessels, reduce shipping costs, and improve turnaround time. 'With our modernisation efforts, we are confident that Nigerian ports will soon rank among the best in the world. Our goal is to create a maritime environment that is efficient, transparent, and attractive to both local and international investors,' he added. Leader of the APM delegation, Mr Peter Wikstrom, expressed enthusiasm over the transformation taking place within Nigeria's maritime sector. 'This is my first visit to Nigeria, and I'm impressed by the scale of opportunity here,' he said, describing Nigeria as a strategic investment hub for APM Terminals. He noted that APM Terminals, having operated in Nigeria for over 20 years, is optimistic about the country's future and intends to channel the new investment into expanding terminal capacity, improving cargo handling efficiency, and attracting larger vessels in line with federal objectives. Also speaking, the CEO of APM Terminals Nigeria, Mr Frederik Klinke, revealed that the company is collaborating with the Nigeria Customs Service on an additional $10 million investment for the deployment of modern cargo scanners at the Apapa Port. According to him, the deployment would enhance trade facilitation and reduce cargo dwell time. He added that APM Terminals aims to become the first terminal operator in Nigeria to achieve full deployment of state-of-the-art scanning technology. Klinke noted that the initiative would drastically cut down physical container examinations, streamline cargo clearance, and significantly boost the overall efficiency and competitiveness of Nigeria's trade and logistics environment.
Zawya
06-03-2025
- Business
- Zawya
Nigeria: NIMASA commits to strengthening maritime business growth
The Nigerian Maritime Administration and Safety Agency (NIMASA) has reaffirmed its commitment to fostering a level playing field and creating an enabling environment for businesses in Nigeria's maritime sector. The Director General of NIMASA, Dr. Dayo Mobereola, made this known while receiving the Executive Members of the Nigerian Merchant Navy Officers and Water Transport Senior Staff Association. He emphasized that under the supervision of the Ministry of Marine and Blue Economy, led by Hon. Adegboyega Oyetola, CON, NIMASA is taking strategic steps to enhance local participation and encourage investment in the industry. Dr. Mobereola revealed that NIMASA is deepening its collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) to explore policies that will boost indigenous involvement and strengthen Nigeria's maritime sector. 'The Honourable Minister of Marine and Blue Economy is committed to encouraging indigenous players to invest more in Nigeria's maritime industry. Issues such as national carriers and trade terms remain top priorities under this administration. Our focus is to create an enabling environment where private investors can thrive. In this regard, we have initiated discussions with the NCDMB and NNPC Limited to address these critical matters,' he stated. In response, Comrade John Aleakhue Okpono, Secretary General of the Merchant Navy Officers and Water Transport Senior Staff Association, emphasized the need for closer collaboration between NIMASA and the Merchant Navy. He also urged the Agency to review waiver clauses to ensure more opportunities for Nigerian seafarers. NIMASA remains committed to fostering strategic partnerships that will enhance local investment, create jobs, and drive sustainable growth in the maritime sector. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
