Indigenous ship-owners in Nigeria are set to receive the first disbursement of the Cabotage Vessels Finance Fund (CVFF) from Primary Lending Institutions (PLIs) expected kick off in March 2023.
The PLIs United Bank of Africa (UBA), Zenith Bank, Union Bank, Jaiz Bank and Polaris Bank.
The CVFF is an intervention fund created by the federal government to develop indigenous shipping capacity in Nigeria to maintain existing vessels or purchase new ones.
The available funds for disbursement stand at a little over N16 billion and $350 million.
The Fund is expected to make an equity contribution of 15 pdercent, while the Nigerian Maritime Administration and Safety Agency (NIMASA) will make an equity contribution of 35 percent.
The banks will provide the remaining 50 percent.
The Minister of Transport, Mu’azu Sambo, recently met with the managing directors of the approved PLIs in Abuja to discuss disbursement procedures.
Sambo also disclosed that President Muhammadu Buhari had approved the immediate disbursement of the CVFF.
Sambo noted that it has taken 17 years to get presidential approval for the disbursement and charged the key stakeholders to expedite action on the necessary details to facilitate the quick distribution of the funds.
Reports revealed that President Buhari also approved that the 2 percent charge that makes up the Cabotage Fund should continue to accrue to the Central Bank of Nigeria’s Treasury Single Account (TSA).
On the modality to distribute the fund, the statement explained that each time the account hits $50 million, the minister of Transportation, on the recommendation of NIMASA, will direct the CBN to release the amount to any of the five banks for disbursement
The interventions cut across different economic sectors have gulped over N4 trillion and beneficiaries of the interventions are expected to repay the money as it is a loan, not a grant.
The CBN had in another platform provided a detailed analysis of how much it had spent over the years on various interventions.
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
