By Yemi Olakitan and Hauwa Ali
As part of the Federal Government’s commitment to increasing Nigerians’ capacity to own vessels, President Muhammadu Buhari has approved five financial institutions for the immediate distribution of the Cabotage Vessel Financing Fund (CVFF) to qualifying Nigerians.
Engineer Mu’azu Jaji Sambo, the minister of transportation, who made this announcement, stated that Union, Zenith, Polaris, UBA, and Jaiz Banks were confirmed as the designated Primary Lending Institutions for the disbursement of the funds by the Presidential approval that the Ministry received on Friday. Dr. Bashir Jamoh, the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), stated that the monies available for payment were little over 16 billion Naira and $350 million in a statement released on Sunday.
“What we have so far gathered is divided into two parts, each made up of naira and dollars. The CVFF has so far made available funds totaling about sixteen billion naira (16,000,000,000:00), while contributions in dollars have been somewhere around the three hundred fifty million dollar mark ($350,000,000:00), the official stated. Sambo stated that for the execution, the Ministry of Transportation has established contact with the Minister of Finance and the Governor of the Central Bank of Nigeria (CBN). “My request for the release of the Cabotage Vessel Financing Fund has been approved by President of the Federal Republic of Nigeria, Muhammadu Buhari. I think we’re finally going to end the 17-year curse that has prevented the maritime industry from growing.
“We have argued that you, the shipowners, are the rightful owners of the funds. Mr. President is a gentleman who respects the law and agrees with us that we should move on right away. In order to start securing the approval right away, we will be in contact with both the Governor of the Central Bank of Nigeria (CBN) and the Minister of Finance, Budget, and National Planning.
“We have promised the President that they will continue to permit the funds to go into the Treasury Single Account, TSA; however, whenever the money hits the threshold of $50 million, the CBN would be expected to transfer the funds to the Primary Lending Institutions upon recommendation from the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Federal Ministry of Transportation,” he said.
The Nigerian Coastal and Inland Shipping (Cabotage) Act of 2003 and the CVFF were both created to provide indigenous ship owners the power to take over the country’s coastal and inland shipping industry, also known as the “cabotage trade.”
In order to qualify for the Fund, applicants must provide 15% of their own equity, while NIMASA will contribute 35% and the banks will contribute 50%.