FG orders banks to disburse cabotage vessel financing fund

The Federal Government has called on bankers and stakeholders to make a concerted effort towards the quick disbursement of the Cabotage Vessel Financing Fund (CVFF) a reality.

The Minister of Transportation, Mu’azu Sambo made the call at a meeting with representatives of the Primary Lending Institutions and other key stakeholders.

This is contained in a statement by Mr Henshaw Ogubike, Director, Press and Public Relations of the Ministry on Thursday in Abuja.

Sambo, said that the ministry had received the approval of the President to disburse the funds, and it was now left for the key players to actualise the approval by the President.

He said that President Buhari had approved the immediate disbursement of the Cabotage Vessel Financing Fund through five primary lending institutions, namely Polaris, Zenith, Union, Jaiz and UBA banks.

“The President also approved that the two per cent charge that makes up the Cabotage Fund should continue to accrue to the CBN Treasury Single Account (TSA).

“And each time the account hits 50 million dollars the Minister of Transportation should on the recommendation of the Nigerian Maritime Administration and Safety Agency (NIMASA) direct the CBN to release the amount to any of the five banks for disbursement,” Sambo said.

The minister said that it had taken 17 years to get presidential approval for the disbursement and urged the key stakeholders to expedite action on the necessary details to facilitate the quick disbursement of the funds.

Sambo said the maritime sector would be a major income earner for the country if properly managed, adding that it was fulfilling for him to lead the historic process of disbursing the cabotage funds.

Out correspondent reports that Section 44, Part VIII of the Cabotage Act 2003 provides for the establishment of the Cabotage Vessel Financing Fund (CVFF) and a two per cent deduction on cabotage-protected trade earnings goes into the savings for the development of indigenous tonnage (ships) in Nigeria.