About 49 per cent or N686 billion ($490 million) of equity in the N1.4 trillion ($1 billion) of the Regional Maritime Development Bank (RMDB) being promoted by the Maritime Organisation of West and Central Africa (MOWCA) has been ceded to private sector stakeholders. This is just as the Federal Government of Nigeria advises on due diligence before the final take-off of the specialised lender.

The bank, with head office in Nigeria, is being established to tap $100 billion resources in the maritime industry yearly by member countries – Angola, Benin, Cameroon, Cape Verde, the Congo, Côte d’Ivoire, the Democratic Republic of the Congo, Gabon, The Gambia, Ghana, Guinea, Guinea-Bissau Equatorial Guinea, Liberia, Mauritania, Nigeria, Sao Tome and Principe, Senegal, Sierra Leone and Togo. Also, 51 per cent or N714 billion ($510 million) of the bank shares have been reserved for member countries.

While commending MOWCA Secretary General, Dr Paul Adalikwu, for promoting good corporate governance, the Minister of Marine and Blue Economy, Adegboyega Oyetola, advised that due diligence be observed before the full take-off of the bank to avoid mistakes from inception. The minister urged all the member countries to contribute their quotas in ensuring that the bank is adequately financed, adding that Nigeria would be transparent in the nomination of qualified persons to fill the allotted positions to the country, including the post of president and managing director of the bank.

Also, Adalikwu, who was on his first visit to the minister in Abuja since the creation of the marine and blue economy ministry, said that Nigeria’s stake in regional maritime issues was expanding, noting that the bank’s charter provided that a minimum of eight countries should endorse the charter and that nine countries have so far signed up for the bank creating the grounds for easy take off. He informed the minister that MOWCA had become more accountable and transparent under his watch in running its affairs with detailed annual reports made available for the Council of Ministers and member countries.

Last year, after securing administrative office at the Nigerian Maritime Administration and Safety Agency (NIMASA) Abuja zonal office, delay in the nomination of vice presidents from various member countries and takeoff fund of $1 billion was said to have been major issue that hampered the takeoff of the hanks. It would be recalled that the idea to establish the regional bank was unveiled at the Bureau of Transport Ministers’ meeting in Angola in 2005, when Nigeria was tipped to host the headquarters, while member countries were asked to contribute $1 billion.

They agreed to focus on the growth and development in West and Central Africa with a view to raising debt and equity capital of $850 million and $150 million respectively. The approval for Nigeria to host the banks’ headquarters was further ratified at the 13th General Assembly of MOWCA in Dakar, Senegal in July 2008 after which the late President Umaru Yar’Adua approved it in February 2009. The bank is designed to function like a regular commercial bank, requiring sufficient capitalisation to support maritime activities but lack of adequate funding has slowed down its operation as major countries depend on Nigeria for a larger percentage of the takeoff money.

It was learnt that the delay in nomination of the vice presidents by each country was also linked to the recent recall of Secretary General, Paul Adalikwu to the Ministry of Marine And Blue Economy. Notwithstanding in the delay of the bank, the President of Nigeria Chamber of Shipping (NCS), Alhaji Aminu Umar said that Nigerian ship owners do not need to wait for the bank to take off as there were better opportunities and alternatives that would serve the industry better than the bank. Umar said: “If there is no maritime bank, that does not meant that Nigerian ship owners cannot have access to funds. One of the funds is the Cabotage Vessel Finace Fund (CVFF).

There are other intervention funds that ship owners can be able to access from the Central Bank of Nigeria (CBN) which has nothing to do with the CVFF. There are funds and opportunities of finance by other big multilateral organisations. “Banks like African Export –Import Bank (AFREXIM) and Nigerian Export and Import Bank (NEXIM). Today, NEXIM is leading the financing and championing the establishment of Sealink which is a shipping company that some investors and promoters are trying to push to be able to become liner service within the West African sub-region.”

Source- New Telegraph Newspaper.