Respite for Local Shipowners as FG Set to Disburse CVFF

ABIOLA Seun |

There is respite on the way for indigenous shipowners as the Honourable Minister of Transportation, Rotimi Amaechi, has summoned stakeholders to an urgent meeting to address the shipping community’s concern over the government’s continued inability to disburse accruals into the Cabotage Vessel Finance Fund (CVFF) to qualified indigenous operators.

The Minister, who represented President Mohamed Buhari, who was the Special Guest of Honour at a public book presentation titled: Harnessing Nigeria’s Maritime Assets – Past, Present and Future, authored by the Executive Director, Finance and Administration of the Nigerian Maritime Administration and Safety Agency (NIMASA), Mr. Bashir Jamoh, said that the government understands stakeholders’ yearnings for the review of the disbursement guidelines of the fund, alluding that the meeting is to find solution to it. Amaechi said the meeting will be in his office.

The unjustifiable failure of the government to disburse the fund with accruals of over N124 billion, is said to be not only the cause of the inability of the indigenous shipping companies to participate in international cargo business, but also stifles development of local capacity.

Recall that the Director General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dakuku Peterside had earlier in the month said the Cabotage Vessel Finance Fund (CVFF) had accumulated to a whopping sum of $124 million (about N37.9 billion at 306-$).

He said that the Federal Government would soon commence disbursing the money to beneficiary ship owners in Nigeria.

Speaking in a press conference in Lagos, Peterside said the Minister of Transportation whose responsibility it is to disburse the fund to ship owners has declared his intention to ensure that it is disbursed between now and next year.

He explained that the seeming delay in disbursing the money to ship owners was out the Minister’s determination to carry out proper due diligence, so that the fund does not go the way of similar funds in the past, which were not repaid by some beneficiaries