DEADLINE: 18TH MARCH, 2021
NIGERIAN MARITIME ADMINISTRATION AND SAFETY AGENCY (NIMASA)-
(ESTABLISHED UNDER THE NIGERIAN MARITIME ADMINISTRATION AND SAFETY AGENCY ACT, 2007)
MARITIME HOUSE: 4 BURMA ROAD, APAPA, P.M.B. 12861, LAGOS.
EMAIL: info@nimasa.gov.ng
WEBSITE: www.nimasa.gov.ng
PROC. 0321SNO1
IMPLEMENTATION AND DISBURSEMENT OF THE CABOTAGE VESSEL FINANCING FUND (CVFF): EXPRESSION OF INTEREST AS A PRIMARY LENDÍNG INSTITUTION
We have received the approval of the President and Commander in Chief to disburse the Cabotage Vessel Financing Fund (CVFF) to qualified indigenous maritime operators in line with the Treasury Single Account (TSA) policy and the CVFF Guidelines 2005. The Cabotage Vessel Financing Fund (CVFF) is a fund set up by the provisions of section 42(1)-(2) of the Cabotage Act 2003 for the purpose of promoting the development of indigenous ship acquisition capacity by providing Financial assistance to Nigeria operators in domestic coastal
shipping. In line with the provisions of section 44, part vi of the Coastal and Inland Shipping (Cabotage) Act 2003, the Federal Ministry of Transportation issued guidelines for the implementation of the Cabotage Vessel Financing Fund (CVFF) 2006.
Section 4 of the guidelines specified the minimum requirement for participation as Primary Lending Institutions (PLIS) without prejudice to NIMASA’s qualification criteria:
(a) Must have an existing relationship with NIMASA. (WAIVED IN VIEW OF TSA)
(b) Must have shareholders fund in excess of N25 billion; and
(c) Must have proof of substantial financial support in terms of credits extended to indigenous maritime operators.
The functions of the Primary Lending institution (PLIS) as contained in section 6 (c) of the Guidelines includes the following:-
(i) Liaising with NIMASA in determining the risk acceptable criteria for the utilization of the Cabotage Vessel Financing Fund (CVFF) or issuing of guarantees.
(ii) Participation in the financing and management of specific projects where necessary to further secure repayment of the loan or obligation;
(iii) Active involvement in on-lending, monitoring and entire loan management; and
(iv) Any other financial advisory or ancillary services as the fund may determine.
In addition to the above and in view of the Treasury Single Account policy of the Federal Government of Nigeria, your bank shall also indicate as follows:
a) Preparedness to open a dedicated account for each applicant who shall deposit a minimum of 15% of the loan request (Sum applied for) into the account.
b) Commitment of your bank to contribute between 10%- 35% of the loan request.
c) Commitment to a cumulative single digit interest rate.
On approval of the loan request by the Honourable Minister of Transportation, NIMASA shali transfers its portion of the loan request into the dedicated account.
You areherebyinvitedtoforward your expression of interest by submitting ten (10) copies of your application to the hereafter stated address with clear proposals on extent of participation and interest rates mechanism.
The Director General/CEO
NIMASA
9th Floor
4 Burma Road,
Apapa, Lagos.
Your application is expected to reach the office of the Director General not later than 2pm on Thursday 18th March 2021.
SIGNED:
CHUDI OFFODILE
Executive Director, Finance and Administration
For: Director General/CEO
