NIMASA Targets N1bn Monthly Revenue From N50bn Modular Floating Dock

The Nigerian Marítime Administration and Safety Agency (NIMASA) has disclosed that its N50 billion modular floating dock would generate a whopping N 1billion monthly into the federation account.

Speaking at the Institute of Maritime Studies (IMS), University of Lagos, the director general, NIMASA, Dr Bashir Jamoh, said, the Floating Drydock would also maximise a national blue economy asset through inter-agency partnership.

According to him, the floating dock is a tripartite inter-agency partnership involving three sister government agencies with clearly outlined statutory functions. 

“The Nigerian Ports Authority (NPA), provides the location for the establishment of the dry-dock (the Hardware); the Infrastructure Concession and Regulatory Commission (ICRC) midwifed the public-private partnership to make it bankable and viable (the Software),” Dr Jamoh added.

The NIMASA boss, however, hinted that the agency has started sensitising littoral states to take advantage of their blue economy potentials by engaging with their respective governors to serve as the engines room for growth.

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Speaking further, he said,  Nigeria would soon boost its Cabotage trade with new vessels, even as he announced the involvement of the Nigerian National Petroleum Company  Limited (NNPCL), in the project by providing 9 per cent out of the 15 per cent required from the shipowners.

To achieve this, the NNPCL offered to provide 9 percent funding that will enable shipowners to access the CVFF and buy new ships.

Jamoh added that, NIMASA will provide 50 per cent of the funding while the commercial banks selected as primary lenders will provide 35 percent while the selected shipowners will provide 15 per cent required, which they will share with the NNPCL.

According to him, the shipowners have complained that many of them do not have the financial strength to provide 15 percent of the funding, which is why the NNPCL agreed to offer them nine per cent so that the shipowners will only have to source for only six per cent.

“NNPCL said it needs ships to lift Nigerian crude and that it will give Nigerian shipowners the specifications of ships to buy and also give them nine per cent out of the 15 per cent of the funding that was supposed to be provided by the shipowner. 

take over the ship and provide the cargo until it recovers the amount invested in the acquisition of the ships,” Jamoh explained.

Jamoh said that NIMASA is expected to give each shipowner about $25 million, adding that about $350 million would be provided by the agency while the banks will add another 35 per cent and shipowners another 15 per cent.   

He said, buying new ships will allow Nigeria to take over its shipping business and the opportunities in the blue economy.

“Nigeria’s future lies in the blue economy because there has been a drastic reduction in the demand for Nigerian crude because the developed nations are finding alternatives to fuel. This is one of the reasons oil prices have continued to fluctuate in the international market.

“As the world continues to work towards phasing out the use of fossil fuels, now is the time for Nigeria to focus on finding alternative revenue sources to crude oil,” Jamoh said.