The Minister of Transportation, Mu’azu Jaji Sambo has met with the banks shortlisted to disburse the $350 Millon Vessel Financing Fund (CVFF) for indigenous ship owners.
President Muhammadu Buhari had given approval for the funds to be disbursed after close to two decade of saving the funds.
The Minister met with the representative Heads of the Primary Lending Institutions, the MD CEO of Polaris Bank, UBA, Union Bank, Zenith Bank, Jaiz Bank, the DG NIMASA, the MD Shipping NNPC and other stakeholders over the modalities to disburse the money.
Industry stakeholders have warned that if the beneficiaries are not chosen based on capabilities to leverage the funds, the money will be wasted. They also warned against corruption in the process of disbursements.
A statement by Henshaw Ogubike, The Director(Press and Public Relations) Federal Ministry of Transportation said the minister called for a concerted effort by key stakeholders to make the quick disbursement of the Cabotage Vessel Financing Fund (CVFF) a reality.
The Minister noted that it has taken seventeen years to get presidential approval for the disbursement and charged the key stakeholders to expedite action on the necessary details to facilitate the quick disbursement of the funds.
“We have received the approval of the President to disburse the funds. It is now left for the key players to actualise the approval by the President”, he said.
Sambo said the maritime sector would be a major income earner for the country if properly managed, adding that it was fulfilling for him to lead the historic process of disbursing the Cabotage Funds.
Section 44 part VIII of the Cabotage Act 2003 provides for the establishment of the Cabotage Vessel Financing Fund (CVFF) and a 2% deduction on cabotage-protected trade earnings goes into the savings for the development of indigenous tonnage (ships) in Nigeria.
The Bankers and other critical stakeholders had hours of closed-door deliberation after the minister’s remark, to chart out a clear course for the final disbursements in the coming day.
He reiterated that President Buhari had approved the immediate disbursement of the Cabotage Vessel Financing Fund (CVFF) through five primary lending institutions, namely Polaris, Zenith, Union, Jaiz and UBA banks
According to him, “The President also approved that the 2% charge that makes up the Cabotage Fund should continue to accrue to the CBN Treasury Single Account(TSA) and each time the account hits $50m, the Minister of Transportation should, on the recommendation of NIMASA, direct the CBN to release the amount to any of the five banks for disbursement”.
