The Ship Owners Association of Nigeria (SOAN) has called on the Federal Ministry of Marine and Blue Economy not to disburse the $700 million Cabotage Vessel Financing Fund (CVFF) to all indigenous ship-owners, stating that not all ship-owners qualify to apply for the fund.

Speaking with the Nigerian Tribune in an exclusive chat, President of SOAN, Mr. Sonny Eja stated that any indigenous ship-owners without a valid contract shouldn’t bother applying for the fund.

According to Mr. Sonny Eja, “I was at an event two days ago, and I said, yes, that the plan to disburse the CVFF is a welcome development. But there must be very, 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 Bank of Industry (BOI) is involved.

“We had a very successful outcome with the Nigerian Content Development and Monitoring Board (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 these funds that will be disbursed, 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. Also, If you don’t have a valid contract, don’t bother applying for the CVFF. 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, he should not bother applying; because if he applies and gets the funds, how does he repay if he doesn’t have a valid contract?

“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.”

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