President Muhammadu Buhari has approved the disbursement of N16 billion and $350 million to shipowners under the Cabotage Vessel Financing Fund (CVFF).

The money is for qualified Nigerians as part of the Federal Government’s commitment to grow indigenous capacity of Nigerians to own vessels.

Zenith, Polaris, UBA, Union and Jaiz Banks have been appointed as Primary Lending Institutions for the disbursement of the funds.

Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh, announced that the funds available for disbursement was slightly over N16 billion and $350 million.

Jamoh said: “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 naira component is around N16 billion while contributions in Dollar component hovers around the $350 million mark.

Minister of Transportation, Engr. Mu’azu Jaji Sambo, at a press briefing at the weekend, 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. It is my belief that finally we are going to break the 17-year-old jinx that has hindered the expansion of the maritime industry.

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“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 be liaising with the Minister of Finance, Budget and National Planning and the Governor of the Central Bank of Nigeria (CBN) to work immediately for the 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 NIMASA and the Federal Ministry of Transportation, would be expected to transfer the funds to the Primary Lending Institutions.”

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 Cabotage trade.

Applicants of the Fund would make an equity contribution of 15 per cent while NIMASA would make an equity contribution of 35 per cent; and 50 per cent would be provided by the banks.

The Star