Nigeria’s Minister of Transportation, Mr. Rotimi Amaechi, says the two hundred million dollars Cabotage Vessel Financing Fund (CVFF), which was initially used to build Faculties of Maritime in different Nigerian Universities will now be applied to Ship Owners directly.
Mr. Amaechi disclosed this at a briefing with journalists in Lagos, South-West Nigeria, shortly after a meeting organized by the Nigerian Maritime Administration and Safety Agency (NIMASA) for Cabotage Stakeholders.
A committee chaired by the Director-General of NIMASA, Dr. Dakuku Adol Peterside, has also been set up with guidelines for disbursement of the funds.
The Minister said, “In the past, the money was applied to building maritime university and faculties of maritime in other universities across the country. This would be the first time the money is applied to Ship Owners directly.
“We have also agreed today to set up a committee that will come forward with the proposed guideline which will be presented to the National Assembly.
“It is the committee that will determine if it will be a single-digit or not, and the committee would be chaired by the DG of NIMASA.
“As part of efforts to mitigate the risk involved in the disbursement, the banks will be involved in developing the criteria for the disbursement of the fund, so the risk will be borne by the lending institutions.”
Mr. Amaechi also noted that the committee would determine the percentage interest to be inserted in the procurement of CVFF.
Earlier, Director-General, NIMASA and Head of the Committee, Dr. Dakuku Peterside said the meeting was convened on the instance of the Minister to discuss the singular issue of CVFF disbursement.
He said after extensive discussions by relevant stakeholders, it was decided that the committee should come up with the draft guidelines.
“The minister will study this draft and pass on to the National Assembly for approval in line with the Cabotage Act. Thereafter, we will move to the next phase of actual disbursement using the banks as a platform,” he said.
Dr Peterside also disclosed two factors that would determine the disbursement of CVFF:
“One factor will be how soon the National Assembly approves the draft guidelines and the other factor will be that the provisions of the guidelines will have to be followed adequately by the participating banks. So stakeholders have to meet these requirements before the disbursement of CVFF.”
Responding, Chairperson, Ship Owners Forum (SOF), Mrs. Margaret Orakwusi expressed satisfaction at the development:
“I look forward to the disbursement of the fund and a better shipping industry where the fund would be utilized judiciously.”
Source: VON
