The President of Nigeria, Muhammadu Buhari, has authorised the immediate release of the Cabotage Vessel Financing Fund (CVFF) to eligible Nigerians.
According to the government, this is an effort to increase Nigerians’ ability to build and own ships domestically.
Transport Minister Mu’azu Jaji Sambo made the news at a press conference, saying that the Presidential approval received by the Ministry last Friday affirmed Union, Zenith, Polaris, UBA, and Jaiz Banks as the appointed primary lending institutions for the release of the money.
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Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Bashir Jamoh, recently said that the agency had more than N16 billion and $350 million ready for distribution.
He explained that their preliminary findings were split evenly between Naira and US dollars.
“So far, the funds available under the CVFF in naira component are around N16,000,000,000:00, while contributions in Dollar component hover around the $350,000,000:00,” he said.
The minister also mentioned that preparations for implementation are already underway, with communications between the Ministry of Transportation, the Minister of Finance, and the Governor of the Central Bank of Nigeria established.
He said, “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 liaise 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.”
The CVFF was set up in conjunction with the Nigerian Coastal and Inland Shipping (Cabotage) Act of 2003 to give native ship owners a say in the Cabotage trade, which involves transporting goods through Nigeria’s coasts and inland waterways.
The Fund’s applicants would put in 15% of their own money, NIMASA would put in 35%, and the banks would put in the remaining 50%.
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