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NIMASA reads riot act to banks over disbursement of CVFF

—- asks them not to scare away ship owners with unnecessary collaterals
—- gives them 72 -hr ultimatum to come up with harmonised procedures for disbursement 
 The Eyewitness reporter
The Nigeria Maritime Administration and Safety Agency (NIMASA) have met with the five Primary lending institutions (PLIs) selected by the federal government to drive the disbursement process of Cabotage Vessels Financing Funds ( CVFF).
The PLIs approved for the fund’s disbursement are Zenith bank, Polaris bank, United Bank of Africa (UBA) Jaiz bank, and Union bank.
Addressing the Heads of the financial institutions at the Corporate Headquarters of the agency Tuesday, the Director General of NIMASA, Dr. Bashir Jamoh, spelt out the expectations of the government to the PLIs over the long-awaited disbursement of the Cabotage funds.
According to him, the desire of the government was to disburse the funds as quickly as possible but also to avoid the mistakes of the previous intervention funds.
He said the funds are ready and the agency was ready to collaborate with the lending institutions to ensure the success of the project.
Reacting to the request of one of the banks for a 50 percent guarantee by the benefiting ship owners, Dr. Jamoh reminded them that the 50 percent counterpart funding from NIMASA is in dollars which he said would be sent to the banks.
He warned that government would frown at any unnecessary demand for collaterals which may scare the ship owners from accessing the loans.
”We don’t want a situation whereby the banks will be asking for the father and mother of the ship owners and other collaterals that may make the prospective beneficiaries of the funds get scared”
He advised them that in as much as the issue is within the purvey of the banks, he noted that the banks, as a way of securing their investments, could tie the funds to particular shipyards from where the vessels purchased by the money are coming from.
He also asked the banks to look at the area of cabotage contracts secured by the beneficiaries which the bank can use as part of the guarantee.
Jamoh warned that asking for any other guarantee may slow the process of disbursement which government frowns at.
Earlier,  the head of enterprises, Polaris bank, Femi Aribaloye, raised concerns on the risks involved on the part of the banks and the volatility of the shipping industry
“Whatever it is that we needed to do in terms of structure and interest will be carried out, but I think the ultimate or the most important thing here is to ensure that this thing is successful and that’s why we are here and that’s why this particular fund is now being disbursed in collaboration with the bankers.”We are also very much aware of the environment in which we operate, we know things can be a little bit turbulent, and policies and the economic situation might change so, I just want to find out since its also within the purview of the Ministry of Transportation, if there is anything that can be done to further minimize the risk that the PLIs are going to be carrying.

” We look at the chance of the possibility of a partial guarantee because as financial institutions, we would like to ensure that everything is done rightly,” he said.

However, NIMASA DG disclosed that the agency had given the disbursing institutions 72 hours to come up with harmonised position on the modalities for disbursement of the dollar component of the funds which is put at $350 million.

According to him, the banks are expected to come up with issues such as the interest rate, tenor, collateral, and other requirements needed to access the fund.


According to him, the interest rate must be of international best practices because the money to be released to the banks is in foreign currencies and not local currency.He, however, stated further that the disbursement of  CVFF can’t start without stakeholders’ engagement, saying that was why the agency met with PLIs.

“We can’t start disbursement without stakeholders’ engagement, therefore, stakeholders’ engagement starts today(Tuesday)

” We are on track, we have started with the PLIs and all five of them are here today. We have listened to them and they listened to us and from all indications, they are ready for us as well.”

“What we want them to do now is to allow them to come up with a collective decision and that cannot take more than 72 hours.

“As we are leaving this boardroom, they will sit down and decide on a date because we don’t want them to come individually to us with their own interest rate, we want them to have a consensus and a standard template on the disbursement of funds as well as the interest rate.

” This is what we advised them to do and as soon as they finish that, we will then invite the shipowners,” he said.

When asked what the interest rate and the collaterals needed by shipowners to access the loans are, he said the guidelines will disclose that.

“The guidelines will tell us the interest rate and how the interest rate is supposed to be, the tenor, and the collateral because we won’t allow them to come and make the shipowners feel very insecure.”

“I mentioned to them on the issue of collateral, you all have NIMASA money with you, so all these things will be deliberated among themselves, let’s allow them to go through our guidelines seriously and see how they can adjust within themselves because we are giving them international currency, not Nigerian currency, they cannot start looking at Nigeria lending rate but the uniform international best practices so we are still on track because the guidelines stipulated everything, “he said.

Speaking earlier, the Managing Director of Jaiz bank, Dr. Sirajo Salisu, assured indigenous shipowners that the fund would be disbursed to them at the appropriate time.He, however, warned the shipowners that CVFF is not a grant or money that can be received without paying back to the banks.

“We will try our best to partner with the beneficiaries or the proposed beneficiaries of these funds and I believe they are much aware that this is not a grant, this is not  money that they will just take away, this is money that is meant for a purpose and we will ensure that that purpose is achieved to the benefits of the country.”

NIMASA will contribute 50 percent of counterpart funds, the banks (PLIs) will provide 35 percent while the remaining 15 percent will be provided by the benefiting ship owners.
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Customs

Korea deepens collaboration with Nigeria Customs, fetes Adeniyi

Funso OLOJO
The Embassy of the Republic of Korea hosted a formal dinner on Thursday, 31 October 2024, in honour of the Comptroller-General of Customs (CGC) Adewale Adeniyi and members of his management team at the Embassy in Abuja.
 The event underscored the strengthening of bilateral relations and the shared objectives of the Nigeria Customs Service (NCS) and the Korean authorities.
CGC Adeniyi, accompanied by senior officers including Deputy Comptroller-General (DCG) of Human Resource Development, Greg Itotoh, DCG of Tariff and Trade, Caroline Niagwan, and DCG of ICT-Modernisation, Kikelomo Adeola, expressed his appreciation for Korea’s commitment to partnership. In his address, CGC Adeniyi highlighted the progress achieved through collaboration with the Embassy of Korea and other allied agencies, noting how these relationships have enhanced the NCS’s capacity to adopt advanced technologies.
“It is due to our dedicated partnerships that the NCS is now engaged in data analytics programmes, in alignment with World Customs Organization standards,” CGC Adeniyi stated. He elaborated on how these analytics enable the Service to make informed decisions, benefiting from predictive, descriptive, and prescriptive insights. “Learning from global leaders, like Korean Customs, has empowered us to adapt and refine our data-driven strategies,” he added.
The Korean Ambassador, His Excellency Kim Pankym, commended the CGC and his team for their dedication and expressed optimism about continued collaboration. “We are honoured by the Comptroller-General’s presence here tonight, and we look forward to further strengthening ties with the Nigeria Customs Service,” Ambassador Pankym said.
He emphasised the Embassy’s commitment to supporting the growth and modernisation of the NCS.
In his remarks, DCG Greg Itoto expressed the Service’s appreciation for Korea’s proactive engagement with NCS initiatives. “The Embassy’s support and willingness to partner with us are instrumental in driving our Service to greater heights.
“We look forward to continued growth through these collaborations,” Itotoh stated.
The evening reflected the deepening relations between the two nations and affirmed Korea’s dedication to Nigeria’s customs modernisation and capacity-building efforts.
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Oyebamiji, NIWA boss, assures international community of Nigeria’s irrevocable commitment to secure, safe waterways transportation 

Funso OLOJO
The Managing Director of National Inland Waterways Authority (NIWA), Bola Oyebamiji, has taken his campaign for safe and secure water transportation in Nigeria to the international audience in London where he reiterated the irrevocable commitment of the Authority to accident -free navigation on Nigeria’ s inland waterways.
Oyebamiji, who was  in London, attending the 46th Consultative Conference of Contracting Parties in International Maritime Organization, (IMO) Headquarters in the United Kingdom, vowed that no stone would be left unturned to champion the constitutional obligations of the Authority and achieve its mandate under the umbrella of Federal Ministry of Marine and Blue Economy, in line with the Renewed Hope agenda of the current administration of President Bola Ahmed Tinubu.
He said the safety on Nigerian Waterways remains nonnegotiable as the Authority was irrevocably committed to nip in the bud the scourge of boat mishaps occasioned by noncompliance with the safety standards by the reckless boat operators and defaulters.
NIWA boss further disclosed said insights at the ongoing conference would further help to improve and develop Nigeria’s inland waterways for navigation as part of the cardinal objectives of the Authority.
Oyebamiji joined other stakeholders, intellectuals and experts in the maritime sector across the globe, where they are dissecting the topical issues bordering on Marine Geoengineering; Marine Litter and Microplastics and CO2 Sequestration in order to decisively tackle critical ocean challenges across the world.
According to him, by implementing the London Protocol, Nigeria can significantly advance its inland waterways sector, aligning it with sustainable international practices, protecting marine ecosystems and strengthening socio-economic benefits.
The Protocol which has serious implications on the Nigerian Maritime sector is centered on issues relating to inland waterways as it shapes environmental practices, safety and sustainability.
Some of the issues being deliberated on were; environmental protection; strengthened waste management practices; international compliance and standards; capacity building and training; enhanced monitoring and enforcement; support for Sustainable Development Goals (SDGs) and health and livelihood support respectively.
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Bello, Ex Kogi gov.,shuns court proceedings as EFCC seeks his trial in absentia

The Eyewitness Reporter 

The Economic and Financial Crimes Commission, (EFCC)on Wednesday October 30, 2024 asked Justice Emeka Nwite of the Federal High Court sitting in Maitama, Abuja, to proceed with the trial of a former governor of Kogi State, Yahaya Bello in absentia, arguing that his non-appearance in court for arraignment should not be allowed to frustrate his trial.

The EFCC through its lead counsel, Kemi Pinheiro, SAN, also urged the court to enter a plea of “not guilty” on behalf of Bello.

Bello is facing trial on 19-count charges bordering on money laundering to the tune of N80.2billion.

The court had summoned him for arraignment six consecutive times.

Pinheiro told the court that the former governor’s refusal to appear for his arraignment was malicious and that the court should not demonstrate helplessness by not trying him in absentia.

“A court can never demonstrate helplessness. That would be an indication of anarchy and society is based on the rule of law.

“The court demonstrating helplessness will negate the basis of the rule of law,” he said.

Arguing further, the EFCC’s counsel reminded the court that a defendant’s refusal to engage the court’s processes should not frustrate his trial, maintaining that justice is a three-way mechanism.

 “A criminal trial must not be held hostage, truncated or frustrated by a defendant’s refusal to engage the process.

“Justice is a three-way street:  justice to the defendant, justice to the prosecution who has assembled witnesses and justice to the society”.

Earlier in his submissions, he urged the court to enter a not guilty plea for Bello to pave the way for his trial contending that under Section 276 of the Administration of Criminal Justice Act, ACJA, a defendant’s physical presence in court is not an absolute requirement for arraignment.

“The right to plead guilty or not guilty is a right that can be waived by the defendant,” adding that Bello’s absence should not impede the case.

“My first application is to formally enter a plea of not guilty to the defendant, even in his absence.

“The second point is, notwithstanding his physical absence, trial can proceed. What prejudice will the defendant suffer if my lord enters a plea of guilty or not guilty in his absence?

” Even if he was in court and pleaded not guilty, the situation would still be the same.

“The entry of a plea of not guilty by your lordship is an invitation to the prosecution to come and prove the veracity of the allegations”, he said.

In response, counsel for the defendant, Michael Adoyi, opposed the prosecution’s motion, citing a previous court order requiring the defendant’s presence before any applications could be entertained.

He emphasized that the application was contrary to the court’s directive issued earlier.

 “Our first point of response to the application made by the learned senior counsel to the complainant is that the application is made contrary to the subsisting order of this honourable court, even made this morning, that no application can be entertained by this court in the absence of the arraignment of the defendant,” he said.

Pinheiro rebutted Adoyi’s argument, urging the court to reject the defence’s position and proceed with the plea entry, assuring that it would not infringe on the defendant’s rights or affect the trial’s fairness.

Justice Nwite, after listening to both parties, noted that a ruling on the matter may not be possible within the current year due to court schedules.

 “It may not be possible to deliver this ruling this year”

 Pinheiro then proposed that the matter be adjourned for ruling and arraignment, which Justice Nwite granted, adjourning the case until January 21, 2025.

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