Shipowners Bemoan Continued non-disbursement of Cabotage Funds

Abiola Seun I

Indigenous shipowners have again lamented the continued refusal of government to disburse the controversial Cabotage Vessel Finance Fund (CVFF) more than a decade the programme was launched.

They claimed that this development has been the bane of the development of the nation’s maritime industry.

According to the President of the Shipowners Association of Nigeria (SOAN), Greg Ogbeifun, non-passage of the Petroleum Industry Governance Bill (PIGB) and non- disbursement of Cabotage Vessel Finance Fund (CVFF) are the twin- problems stunting the growth of maritime sector.

Ogbeifun said while the CVFF has remained an issue, the non-passage of the PIGB has affected long term development in the shipping industry.

He said, “I don’t think much has changed from our side. I think the PIGB is affecting the ability of International Oil Companies (IOCs) to make long term plans in our industry ‎so everything is still short term. Hopefully when the PIGB is passed and everyone knows what is going on, then they (IOCs) can make long term plans and hopefully the business will get better.
‎ On the disputed CVFF, Ogbeifun said the CVFF remained an issue.
“CVFF still remains an issue. My opinion is sincerely a complicated issue and I have my ideas and I will make it open soon,” Ogbeifun said.
Report had it that Nigeria lost $50billion worth of investment in the oil and gas industry which has affected the growth of the nation’s shipping sector.

The investment which was lost in the last 16 years to non passage of the Petroleum Industry Governance Bill (PIGB) would have resulted in additional 1.5 million barrels per day crude oil production for the country.

According to a maritime forecast made available to our correspondent, PIGB would allow for more oil production and more oil production means more crude oil tankers for export.
The report read, “Nigeria exports 100% of its crude oil by sea, so, an additional 500bpd of crude oil production in the next one or two yeas will amount to 182,500,000 barrels per year or 25,347,222 MTS of cargo per annum.
“This volume of cargo will require a minimum of 91voyagies of a very large Crude carrier (VLCC) vessel to lift, which will generate a lot of activities in the maritime industry.”
The report further stated that the Nigerian oil industry relies heavily on the maritime industry for its smooth operations and whatever happens in the oil and gas industry affects the shipping industry