Posted on December 11, 2022
… Jamoh says ₦16 Billion, US$350 Million presently available***
With President Muhammadu Buhari’s approval for immediate disbursement of the Cabotage Vessel Financing Fund (CVFF), to qualified Nigerian shipowners as part of the Government’s commitment to growing indigenous capacity, the Minister of Transportation, Muazu Sambo has announced the appointment of five banks, as Primary Lending Institutions.
The Minister said Government appointed the Union, Zenith, Polaris, UBA and Jaiz Banks; as the PLI for the disbursement of the funds.
Mu’azu Sambo stated 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.
“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 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.”
Corroborating the Minister’s position, the Director General of the Nigerian Maritime Administration and Safety Agency, NIMASA, Dr. Bashir Jamoh, highlighted that the funds presently available for disbursement was slightly over ₦16 billion and $350 million.
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 naira component is around ₦16,000,000,000, while contributions in Dollar component hovers around the $350,000,000 mark.
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 percent while NIMASA would make an equity contribution of 35 percent, and 50 percent would be provided by the banks.