The immediate release of the Cabotage Vessel Financing Fund (CVFF) to qualified Nigerians has been approved by Nigerian President Muhammadu Buhari.
The government claims that this is an endeavour to expand Nigerians' capacity to produce and own ships domestically.
At a press conference, Transport Minister Mu'azu Jaji Sambo announced the good news, stating that Union, Zenith, Polaris, UBA, and Jaiz Banks had been confirmed as the key lending institutions for the release of the funds by the Presidential permission the Ministry had received last Friday.
Dr Bashir Jamoh, the director general of the Nigerian Maritime Administration and Safety Agency (NIMASA), recently stated that the organisation had $350 million and more available for distribution.
He said they divided their initial finds equally between Naira and US cash.
“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%.