Mu’azu Sambo, the minister of transportation, has encouraged primary lending institutions and other stakeholders to expedite their efforts to ensure that the Cabotage Vessel Financing Fund is disbursed as soon as possible.
During the meeting with the managing directors of Polaris Bank, UBA, Union Bank, Zenith Bank, Jaiz Bank, the director general of the Nigeria Maritime Administration Agency, and other stakeholders, Sambo made this statement.
He reaffirmed that the immediate payment of the CVFF through five primary lending institutions, namely: Polaris, Zenith, Union, Jaiz, and UBA banks, had been approved by the President, Major General Muhammadu Buhari .
The federal government established the CVFF as an intervention fund to improve local shipping capacity in Nigeria for the upkeep of current vessels or the acquisition of new ones.
The CVFF is an intervention fund created by the federal government for the development of indigenous shipping capacity in Nigeria for the maintenance of existing vessels or the purchase of new ones
Notwithstanding, the president also agreed that the Central Bank of Nigeria Treasury Single Account 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 once the account reaches $50 million.
The federal government established the CVFF as an intervention fund to improve local shipping capacity in Nigeria for the upkeep of current vessels or the acquisition of new ones.
The minister said that it had taken 17 years for the presidential sanction for the disbursement, and he tasked the important parties to move swiftly on the required details to enable the prompt disbursement of the cash.
“The president has given his blessing for us to distribute the funds. The president’s approval is now up to the relevant parties to implement, he said. If properly managed, the maritime industry, according to Sambo, could generate significant revenue for the nation. He also said it was an honor for him to oversee the historic Cabotage Funds disbursement process.
In conclusion, the Cabotage Vessel Financing Fund is established under Section 44 of Part VIII of the Cabotage Act of 2003, and 2% of the proceeds from trade that is cabotage-protected are deducted to fund the construction of indigenous tonnage (ships) in Nigeria.After the minister’s remark, the bankers and other important parties spent hours in closed-door discussion outlining a clear route for the final disbursements in the following days.
Source: PUNCHÂ
