Headlines

PLIs seek possession of NIMASA’s 50 percent equity shares of CVFF from CBN

Mr Aburime Ehimare, Zenith Bank

—propose joint monitoring team to oversee utilisation of funds, track and monitor vessels.

Funso OLOJO

The 12 Primary Lending Institutions (PLIs) appointed by the Nigerian Maritime Administration and Safety Agency (NIMASA) have introduced another dimension to the disbursement of the $700million Cabotage Vessels Financing Funds(CVFF).

The disbursement, which had suffered serial delays and postponements, is expected to commence in August, 2025 among successful bidders from the pool of indigenous ship owners.

As the countdown to the disbursement process began, NIMASA held a one- day Stakeholders’ forum on operationalisation of CVFF in Lagos on Monday, May 12th, 2025.

At the forum, which was meant to unfold the structure and modalities of disbursement to stakeholders, Mr Aburime Ehimare, a senior management staff at Zenith Bank, one of the PLIs chosen to disburse the CVFF, made a strong appeal to NIMASA to allow the PLIs take possession of the 50 percent NIMASA’s equity contribution to the CVFF.

It could be recalled that the equity contributions to the disbursement of the

Funds are shared among three parties to the exercise.

NIMASA will contribute 50 percent, the PLIs will contribute 35 percent while the ship owners wishing to access the funds will contribute the remaining 15 percent.

However, the Zenith Bank make a strong appeal that NIMASA’S 50 percent contribution should be warehoused in a consolidated project account that will domicile with the PLIs.

It could be recalled that the $700m CVFF from where NIMASA would fund its 50 percent equity contribution is domiciled in a Treasury Single Account (TSA) with the Central Bank of Nigeria (CBN).

However, Mr Ehimare said the funds should be warehoused by the PLIs to engender liquidity assurance and transparent disbursement process.

” In this session and previous sessions, we have largely agreed that the PLIs will bear 100 percent credit risk of the CVFF disbursement, including NIMASA’s 50 percent contribution.

” But we want to propose that to make these investments enduring ones for the PLIs and by extension, all stakeholders, the NIMASA’s 50 percent equity contribution should be warehoused in a designated project account with the PLIs before disbursement.

” That will provide liquidity assurance and improve the project distribution timeline and also accelerate the process of disbursement” the banker argued.

Mr Ehimare, who raised four vital points that should be considered to ensure seamless disbursement process and infuse confidence in the PLIs, also made a proposal for the establishment of what he called post – disbursement Stakeholders working group that would be monitoring the implementation of the project.

” There is need to have a post- disbursement stakeholders working group.

” NIMASA needs to consider a joint implementation committee for post disbursement which shall comprise the PLIs, NIMASA and industry experts so that we can monitor the programme and resolve operational challenges as they come so that the intended purpose of the CVFF could be realized.

The Zenith Bank chief also wanted all the parties involved in the CVFF disbursement to agree on security – sharing framework that will define clearly the public process.

” For instance, if there is a vessel liquidation, what will be the sharing formula between NIMASA and the PLIs because, even though we have shared interests in these vessels, their characteristics and unique features are not the same.

” This with ensure sustainability of interests and investments.

Ehimare also made strong appeal on behalf of his bank, the Zenith and other PLIs that NIMASA should avail them its technical competence to ensure that vessels bought with the CVFF money could be properly tracked and monitored by the PLIs.

” For us at Zenith and I am sure I am speaking for the rest of PLIs, we want to make a strong appeal to NIMASA to allow us leverage its regulatory capacity and technical competence to provide vessel tracking data.

” This will help the the PLIs to do their own bits.

‘”There are some areas we do not have core competence as much as NIMASA.

” This was discussed at our previous engagements that as part of our 100 percent credit risks, the banks have to put in place the relevant technology to track all these vessels and monitor the utilisation of the Funds.

” We shall be depending on NIMASA to carry out such technical responsibilities” he appealed.

The 12 PLIs engaged by NIMASA to disburse the CVFF include Fidelity Bank, Stanbic IBTC, United Bank for Africa (UBA), Zenith Bank, Lotus Bank and Union Bank.

Others are First Bank,Jaiz Bank, Sun Trust Bank, Globus Bank and the Bank of Industry(BOI).

Analyses

The trillion naira vault: Building political-proof ports for Nigeria

The Monday Discourse with Ibrahim Nasiru focuses on the strategy to lock away the NPA’s port modernisation funds from the groping hands of the politicians in other to avert the calamity which befell the infamous Cabotage Vessels Financing Fund (CVFF)

Following up on the intense national discussion regarding the NPA’s ₦1.489 trillion revenue target, here is a preview of my analysis on how we can structurally lock this massive wealth away from bureaucratic hands.

We cannot allow the historic failure of the Cabotage Vessels Financing Fund (CVFF) to paralyze our economic imagination.

The solution to Port decay isn’t to stop collecting funds, but to change who holds the keys to the vault.

From deploying bankruptcy-remote SPVs to issuing local currency infrastructure bonds backed by pension funds, this piece outlines the exact financial engineering needed to modernize Apapa and Tin Can Island.

Watch out for the full analysis tomorrow.

Headlines

At World Environment Day celebration, NIWA renews commitment to clean, secure waterways

Umar Yusuf Girei, NIWA Ag. MD

Gloria Odion, Maritime reporter

The Acting Managing Director/Chief Executive Officer of the National Inland Waterways Authority (NIWA), Umar Yusuf Girei, has reaffirmed the agency’s commitment to maintaining clean, safe and sustainable inland waterways as Nigeria joins the global community to mark the 2026 World Environment Day.

The celebration, themed “Urbanisation and Climate Change: Building Resilient Cities for a Sustainable Future,” draws attention to the environmental challenges accompanying rapid urban growth and climate change impacts.

In a statement delivered at NIWA Headquarters in Lokoja, Girei extended greetings to cities across the country, noting that urban areas are increasingly expanding around waterways which continue to serve as vital centres of commerce, culture and economic activity.

He, however, warned that urbanisation places significant strain on the environment, leading to challenges such as rising temperatures, flooding and erosion, all of which require urgent and coordinated response measures.

According to him, NIWA views inland waterways as natural infrastructure for building urban resilience, explaining that properly managed rivers and channels help mitigate flooding by serving as drainage pathways, while also offering a cleaner, low-carbon option for transporting goods and passengers.

Girei reiterated the Authority’s commitment to responsible dredging, protection of riverbanks, and sustained efforts to keep waterways free from pollution and indiscriminate waste disposal.

He also stressed that government cannot shoulder the responsibility alone, urging Nigerians to contribute by disposing of waste properly, planting trees along riverbanks, reporting illegal dredging and encroachment activities, and supporting environmental protection initiatives.

He further encouraged greater adoption of water transportation as a safer and more sustainable alternative to road transport across the country.

Headlines

Tope Fajemirokun, WABOTAN President, decries high cost of water transportation in Nigeria

Funso OLOJO, Editor

The President of the Waterfront Boat Owners and Transporters Association of Nigeria (WABOTAN), Mr. Tope Fajemirokun, has lamented the prohibitive cost of water transportation in Nigeria which he said has continued to discourage Nigerians from using this viable mode of transportation.

Fajemirokun make this observation during a live Radio broadcast in Lagos.

The WABOTAN President further disclosed that commuters pay more using water transportation than when using road transportation, a development which he feared was inimical to the growth of water transportation that he believed was a viable alternative to road transportation.

According to him, a commuter pays as high as N10,000 commuting on waters from Badagry to CMS, Lagos on two- way journey.

“The cost of water transportation remains high. For example, a commuter travelling from Badagry to CMS may spend about ₦5,000 each way, amounting to ₦10,000 daily on transportation alone.

” This is one of the major factors discouraging passengers from using the waterways. That is why we are appealing to government at all levels to invest more in the sector,” he added.

To bring the cost of water transportation down, Fajemirokun called on government to invest more on water transportation and also give assistance to private operators in the business.

He lamented that rising fuel prices have significantly affected the operations of boat owners and transporters, noting that the increase in fuel costs, coupled with prevailing economic challenges, has made it difficult for operators to acquire new boats and expand their businesses.

“When you are in business, you must continue to improve and invest in it despite the challenges,” he said.

He also expressed appreciation to NIWA and LASWA for their commitment to maintaining safety standards on Nigeria’s waterways.

Fajemirokun further outlined several initiatives undertaken by WABOTAN to educate its members on safety practices ahead of the rainy season.

“Since the beginning of the year, we have been educating our members on safety measures.

“We have conducted two safety induction programmes this year and are currently planning another one before August.

“With the support of my friend and brother, Frank Meke, the programme will bring together stakeholders, the media, and regulatory agencies to further strengthen safety awareness,” he stated.

The WABOTAN President noted that the association has implemented several safety measures in preparation for the rainy season and acknowledged the efforts of regulatory authorities in sensitizing operators and passengers.

“A few months ago, LASWA invested significantly in clearing water hyacinth from Lagos waterways. Water hyacinth is a fast-growing aquatic plant that obstructs navigation and poses safety risks on waterways,” he explained.

Fajemirokun said WABOTAN has enjoyed strong cooperation from both LASWA and NIWA in promoting safety and regulatory compliance across the sector.

“We have received tremendous support from LASWA and NIWA, and we are working closely with them.

“However, we remain particularly concerned about Rivers and Bayelsa States, where incidents on the waterways tend to increase during the rainy season due to their proximity to the Atlantic Ocean.

“With NIWA’s support, we are intensifying sensitization efforts in those states and across other parts of the country,” he said.

He added that several states are establishing their own waterway authorities and commended NIWA for providing guidance and support in that regard.

Speaking on the need to phase out unsafe banana and wooden boats, Fajemirokun called for greater government intervention and financial support for operators seeking to invest in safer and more modern vessels.

“The government needs to come to our aid, just as the Lagos State Government has been doing.

“Eliminating banana and wooden boats will be easier if government provides the necessary support and investment.

” State governments should also invest more in water transportation to ensure that Nigerians can fully benefit from the opportunities offered by the waterways,” he said.

He further urged government authorities to take a more active role in developing the water transportation sector, noting that the high cost of water travel discourages many commuters.

Also speaking on the programme, veteran maritime journalist Frank Meke acknowledged government efforts but stressed that more needs to be done to unlock the full potential of Nigeria’s water transportation system.”Our roads are heavily congested. As we speak, Apapa remains gridlocked. Imagine the impact if government invested more in water transportation.

” Sometimes, there appears to be more lip service than concrete action. The blue economy holds enormous potential.

” Look at the investments and sacrifices being made by associations like WABOTAN to strengthen the sector.

” Government agencies should demonstrate a similar level of commitment,” Meke said.

He also expressed concern about states such as Kwara, Niger, Benue, and Taraba, where waterways could serve as a more affordable and efficient means of transporting agricultural produce.

According to him, many farmers in these states need reliable and cost-effective transportation options to move their goods to market, making water transportation a viable alternative.

Meke called on the government to declare a state of emergency in the water transportation sector, emphasizing the need for alternative modes of transportation beyond road networks.

“Nigerians need efficient alternatives to road transport, and WABOTAN has played a significant role in advancing the sector.

“Government should provide soft loans to boat operators to enable them to acquire modern vessels.

“Investment should not be limited to boats alone; there is also a need for continuous training of boat captains, crew members, and even passengers.

” As the rainy season approaches, we must prepare adequately for emergencies,” he stated.

Fajemirokun concluded by urging all boat operators to prioritize safety at all times and ensure that passengers wear life jackets before embarking on any journey.

“Safety must always come first. Boat operators and passengers should never neglect the use of life jackets, regardless of the distance of the journey,” he advised.