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Why Nigerian Shipping Lines Can’t Get Bank Loans – Ecobank

Lack of jobs, clear business plan and incompetence have added up to the lack of collateral security forming a pile of factors hindering indigenous ship owners from getting bank loans to do business. Same reasons have also been given by regional commercial bank, Ecobank Nigeria as factors preventing players in the indigenous shipping industry from accessing the Cabotage Vessels Financing Fund (CVFF).

Coming on the heels of the challenges faced by the indigenous ship owners over the issue of funding and favourable global competition, the head of Maritime Centre of Ecobank, Mrs. Deremi Akinsete-Chidi disclosed in an interview with newsmen at the just concluded Nigeria Maritime Expo (NIMAREX) 2014 that many of the indigenous ship owners do not meet loan requirements.

Deremi said that for over a decade, her bank had created the maritime desk to address many of the issues and developments in the maritime subsector, especially with focus on the indigenous shipping lines, amongst which is the issue of access to funding.

Denying industry insinuations indeed, at commercial banks are not willing to support the indigenous ship owners. Deremi said, “When they (indigenous ship owners) come to us for loans, we would ask questions such as, what do they need the loan for? How will they pay back the money at the time of expiration? And we would need collateral before we can give the loan, but it is so surprising that many of them do not have these requirements.
She stressed that many of the indigenous Shipping lines do not have jobs and off-keeps or even a long term plan. “Some of them do not even have a business proposal or a business plan for which they intend to get the loan and they expect to get loan from the banks.

Everyone knows that that is possible,” she said, adding that the bank is ready to finance those who can meet the basic requirements.
Source: Leadership Nigeria