Local Shipowners Urge Quick Disbursement of CVFF

ABIOLA Seun

For the umpteenth time, the indigenous shipowners in Nigeria has called for the disbursement of the Cabotage Vessel Financing Fund (CVFF) towards acquisition of more tankers and dry cargo vessels, noting that only such determined commitment can ensure a timely utilisation of the fund.

Speaking yesterday, the President, Shipowners Association of Nigeria (SOAN), Engr Greg Ogbeifun also emphasized the need to create more jobs for youths.

Ogbeifun who made his observation in Lagos said it had become imperative not only to disburse the CVFF, but to also do it at a single digit interest rate, to effectively make provisions for purchase of more vessels.

He further urged stakeholders to focus on achieving a common goal of growing the Nigerian maritime industry and to boost the Gross Domestic Product (GDP), pointing out if all critical stakeholders, as well as government agencies collaborate, the maritime industry will surge faster.

Ogbeifun maintained that a proper management of the maritime industry would assist the Federal Government entrench diversification from oil, to non-oil revenue.

“The whole essence of Cabotage Vessel Financing Fund is to enable ship owners have access to the fund at a single digit interest rate.

“The political will from the Nigerian Maritime Administration and Safety Agency (NIMASA) had, however, been challenging.

“We ship owners must ensure that we are eligible to access the fund. We need to look at our processes and system to ensure they meet the requirements.

“We are making progress but we need the media to continue with the news that will enable every player in the shipping industry to do the right thing,’’ Ogbeifun said, stressing that Nigerian ship owners must focus on owning ships now.

The nation’s foremost shipowner frowned on merely concentrating on chartering ships from London by Nigerian ship owners, noting that purchasing tanker and dry cargo vessels would help in creating more jobs for youths.

Ogbeifun insisted that if Nigerian ship owners purchase vessels, it would enable indigenous shipping operators to charter vessels in Nigeria, rather than from London.

Ogbeifun said a proper management of the maritime industry would assist the Federal Government to encourage diversification from oil to non-oil revenue.

He said the essence of CVFF which was introduced in 2004 based on two percent freight earnings of shipping operators engaged in coastal shipping services is to enable ship owners have access to the fund at a single digit interest rate.

Advocating the imperative to disburse the CVFF at a single digit interest rate to make provisions for purchase of more vessels, Ogbeifun said the acquisition of more tankers and dry cargo vessels through the CVFF to create more jobs for youths.