Mu’azu Sambo, the minister of transportation, has urged Primary Lending Institutions (PLIs) and other stakeholders to expedite efforts to disburse the Cabotage Vessel Financing Fund as soon as possible (CVFF).
At a meeting with representatives of the Heads of the PLIs, including the Managing Directors of Polaris Bank, UBA, Union Bank, Zenith Bank, Jaiz Bank, the Director General of the Nigeria Maritime Administration Agency (NIMASA), and other stakeholders, the Minister made this statement.
He reaffirmed that the prompt release of the CVFF through five major lending institutions, namely: Polaris, Zenith, Union, Jaiz, and UBA banks, had received President Buhari’s approval.
According to him, the President also agreed that the Central Bank of Nigeria (CBN) Treasury Single Account (TSA) should continue to accrue the 2% charge that makes up the Cabotage Fund, and that 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, each time the account reaches $50 million.
The Minister made a note that it had taken 17 years to obtain presidential clearance for the disbursement and he tasked the important parties to move swiftly on the required details to enable the prompt disbursement of the monies.
“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.
If properly handled, the marine industry, according to Sambo, may generate significant revenue for the nation. He also stated it was an honor for him to oversee the historic Cabotage Funds disbursement process.
The Cabotage Vessel Financing Fund (CVFF) is established under Section 44 of Part VIII of the Cabotage Act of 2003, and 2% of the profits from trades that are cabotage-protected are deducted for the development of indigenous tonnage (ships) in Nigeria.
After the minister’s remark, the Bankers and other important players spent hours in closed-door discussion outlining a clear route for the final disbursements in the following days.
