CVFF DISBURSEMENT: Ship owners dismiss rumoured replacement with ship acquisition model

Segun Oladipupo

Following recent reports that the federal government may eventually not disburse the Cabotage Vessel Financing Fund (CVFF) to individual beneficiaries but may acquire vessels and assign to stakeholders for management, ship owners have denounced the notion saying it does not tally with the law establishing the fund.

Nigeria Ship Owners Association (NISA) said any arrangement different from the agreement contained in the law establishing it is a mere rumour because there is a standard laid down for disbursement of the said fund.

Tunji Brown, a member of the steering committee of NISA told our correspondent in Lagos on Thursday that the earlier procedure is intact.

According to him, except a new guideline is approved by the National Assembly to the effect, the federal government cannot derail from the laid down procedure.

“Please note that is not correct because Cabotage Act and 2006 guidelines do not permit government to acquire vessel.

“A committee was set up to come up with a new guideline and until a new guideline is approved by the National assembly, 2006 guideline is the only law under wich CVFF can be disbursed,” he said

Also speaking, a member of NISA, Otunba Sola Olatunji said that the fund has a modality for disbursement adding that any arrangement outside the law will amount to flouting the Act establishing the fund.

He said, “CVFF is an intervention fund meant for shipping development in Nigeria by Nigerians. It’s shipping promotion and maximization of shipping potentials within our maritime domains and West Africa inclusive.

“Cabotage Act was what prompted the CVFF which was spearheaded by Chief Jolapamo , Capt. Iheanacho, Capt. Dada Labinjo , Admiral Kanu etc. 16 years down the line a lot of fund has been accruable to the CVFF as a results of activities. CVFF disbursement can’t be done by one big man because the guidelines are clearly spelt out.

“It is either you follow the procedure as laid by an act of parliament or you run contrary to the law and be ready to face the music. In my view, what you are hearing outside can best be treated as rumour and not true,” he stated.