President Muhammadu Buhari, GCFR, has approved the immediate disbursement of the Cabotage Vessel Financing Fund, CVFF, to qualified Nigerians as part of the Federal Government’s commitment to growing the indigenous capacity of Nigerians to own vessels.
The Honorable Minister of Transportation, Engineer Mu’azu Jaji Sambo announced at a press conference that the Presidential approval received by the Ministry confirmed Union, Zenith, Polaris, UBA, and Jaiz Banks as the appointed Primary Lending Institutions for the disbursement of the funds.
Disbursement of funds
The Director General of the Nigerian Maritime Administration and Safety Agency, NIMASA, Dr. Bashir Jamoh, OFR, announced that the funds available for disbursement were slightly over 16 billion nairas and 350 million dollars.
In his words, “What we have collected so far is in two folds made up of Naira and Dollar components. So far, the Funds available under the CVFF in the naira component is around Sixteen Billion naira (₦16,000,000,000:00). In contrast, contributions in the Dollar component hover around the Three Hundred and Fifty Million Dollar mark ($350,000,000:00)."
Maritime expansion
We are going to break the 17-year-old jinx that has hindered the expansion of the maritime industry"
On his part, the Honorable Minister noted that the Ministry of Transportation has commenced liaison with the Minister of Finance and the Governor of the Central Bank of Nigeria, for the implementation.
His words, “The president of the Federal Republic of Nigeria, Muhammadu Buhari has approved my request for the disbursement of the Cabotage Vessel Financing Fund. I believe that finally, we are going to break the 17-year-old jinx that has hindered the expansion of the maritime industry."
Funds transfer
“We have made a case that the funds belong to you, the ship owners. Mr. President is a man who respects the law and is on the same page with us to proceed with immediate effect. We will liaise with the Minister of Finance, Budget, and National Planning and the Governor of the Central Bank of Nigeria (CBN) to work immediately for approval."
"We have pledged to the president that they will continue to allow the funds to go into the Treasury Single Account, TSA; however, whenever the money hits the threshold of $ 50 million, the CBN upon recommendation from the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Federal Ministry of Transportation, would be expected to transfer the funds to the Primary Lending Institutions.”
Cabotage trade
The CVFF was established alongside the Nigerian Coastal and Inland Shipping (Cabotage) Act of 2003, to empower indigenous ship owners to take control of the nation’s coastal and inland shipping business, otherwise known as the Cabotage trade.
Applicants of the Fund would make an equity contribution of 15 percent while NIMASA would make an equity contribution of 35 percent, and the banks would provide 50 percent.
