Indigenous shipowners set to tackle NIMASA on disbursement of $100m CVFF

Abiola Seun, Zion Olalekan

The newly elected executive council of the Shipowners’ Association of Nigeria (SOAN) has vowed to take on the management of Nigerian Maritime Administration and Safety Agency (NIMASA) on the need to disburse the accrued proceeds of the Cabotage Vessel Financing Fund (CRFFN)

The newly-elected President of the association, Dr Mcgeorge Onyung, made this vow yesterday after he was given the mandate to lead the ship owners.

Recall that the CVFF is a two per cent contribution by indigenous ship-owners for every contract ship-owners execute and is meant for the development of cabotage fleet and local shipping capacity but, the CVFF, has slightly over-shot $100 million.

However, speaking after the election, the newly elected president said the association would engage the Nigerian Maritime Administration and Safety Agency (NIMASA) and the federal ministry of Transportation over the disbursement of the fund.

According to him, the intervention fund was created for the benefits of shipowners and it must be disbursed for their use.

“The CVFF is created for the benefit of indigenous shipowners and the fact that it had not been disbursed means something needs to be fine-tuned. So I will come back with my team to look at what are the possibilities and what is the real nagging problem so that we can address it for a win-win situation.

“It is not my job to ensure CVFF is disbursed but I believe the government is working on the disbursement but we will create a team that will address all issues that affect our members and the CVFF is one of them. We will look at the best way to ensure that it is disbursed to our members.”

Onyung who further disclosed that the task ahead the new executive is enormous, supported NIMASA’s five years waiver cessation plan for the actualisation of Cabotage act.

“I believe waiver cessation is what is being thought of and of course NIMASA is the authorised agency and has thought about it very well though it is a new plan but we will work on it to be successful it’s a new thing and we will work on it.”

The newly elected president also promised to build an association that would engage stakeholders in the sector constructively.

“The task for the future is very enormous; I want to see a very smoother relationship with our stakeholders and regulators. The shipping industry to be moved to the next level and creating a formidable team that will engage stakeholders. l will work with them and engage them positively.”

“On Cabotage, I believe going forward; it will be made to work. It is a good thing but we have to sit and go back to the drawing board and see which area we can fine tune the rough edges and see areas that can be smoothen for the benefits of the maritime industry,” he stated.

Also speaking, the immediate past president of SOAN, Engr. Greg Ogbeifun rued the non-disbursement of the CVFF by the government.

He said the non-disbursement has affected activities of shipowners to compete favourably in the sector.

“I think Nigeria maritime sector has grown tremendously and the Nigerian content act is working with NIMASA to give opportunities to Nigerians who want to be ship owners but the challenge still remains that the funds that is statutorily designed to help the acquisition of ships by Nigerians is still being locked up by NIMASA and the ministry of transport.

“That fund has to be released to be able to allow Nigerians acquire the ships and be able to take their rightful position, otherwise the opportunities for foreigners will continue to be there,” he advised.