The Managing Director, Heritage Bank, Mr
Ifie Sekibo, has called for disbursement of the Cabotage Vessel
Financing Fund (CVFF) and provision of bank loans to shipping investors
at cheaper rates in Nigeria.
Ifie Sekibo, has called for disbursement of the Cabotage Vessel
Financing Fund (CVFF) and provision of bank loans to shipping investors
at cheaper rates in Nigeria.
Sekibo made the call at the ongoing First
Regional Conference of International Africa Ports and Harbour (IAPH) in
Abuja on Tuesday.
Regional Conference of International Africa Ports and Harbour (IAPH) in
Abuja on Tuesday.
According to him, there is cabotage and shipping fund which ship owners should take advantage of.
He said that the banking sector was still struggling to provide the long-term funds requested by the ship owners.
“We are still struggling with the kind of long-term funds they need to achieve the level of optimisation they are looking for.
“We are also engaging with the critical
stakeholders to make sure that they get the kind of funds they need at
reasonable rates, but it is not what can happen overnight.
stakeholders to make sure that they get the kind of funds they need at
reasonable rates, but it is not what can happen overnight.
“Commercial rates today are in the
neighbourhood of between 20 and 23 per cent, while Cabotage funds has a
lot of lower rates between nine and 12 per cent.
neighbourhood of between 20 and 23 per cent, while Cabotage funds has a
lot of lower rates between nine and 12 per cent.
“Infrastructure to decongest the ports, such as construction of Inland ports, need a lot of financing,’’ Sekibo said.
He said that availability of the right financing with high level of equity funding would help in creating structures.
Sekibo said that participants from the
banking sector were attending the conference to understand the processes
and plans of port operators for banks to give guarantee for easy
operations.
banking sector were attending the conference to understand the processes
and plans of port operators for banks to give guarantee for easy
operations.
He said that Heritage Bank was part of
the conference and looking for a way to fund vessel owners to improve
Nigeria’s Cabotage trade.
the conference and looking for a way to fund vessel owners to improve
Nigeria’s Cabotage trade.
Sekibo said after foreign vessels had
stopped at Lagos ports, available cabotage vessels would tranship the
cargo to the neighbouring countries.
stopped at Lagos ports, available cabotage vessels would tranship the
cargo to the neighbouring countries.
He said that Heritage bank was also
partnering with the African Export-Import (Afrexim) Bank to ensure
Nigeria improves on the national carrier.
partnering with the African Export-Import (Afrexim) Bank to ensure
Nigeria improves on the national carrier.
Sekibo said that there was need for
government to formulate a policy to improve infrastructure development
on hinterland connectivity to enable the banking sector to contribute
meaningfully.
government to formulate a policy to improve infrastructure development
on hinterland connectivity to enable the banking sector to contribute
meaningfully.
He, however, gave the assurance that the
banking industry was ready to support and enable Nigeria to be the hub
in the West and Central Africa Region.
banking industry was ready to support and enable Nigeria to be the hub
in the West and Central Africa Region.
