As part of efforts to expedite the disbursement of the Cabotage Vessel Finance Fund (CVFF), the Minister of Transportation, Mu’azu Jaji Sambo has held a strategic meeting with the Chief Executives of the designated Primary Lending Institutions (PLIs).
Sambo, at the meeting in Abuja, called for a concerted effort by key stakeholders to make the quick disbursement of the CVFF a reality, according to a press statement signed by the Director, Press and Public Relations, Henshaw Ogubike mnipr.
The meeting was attended by the Managing Directors of Polaris Bank, UBA, Union Bank, Zenith Bank, Jaiz Bank, the Director General of NIMASA, the Managing Director of Shipping NNPC and some other stakeholders.
Sambo reiterated that President Buhari had approved the immediate disbursement of the CVFF through the designated banks, noting that it has taken seventeen years to get presidential approval for the disbursement.
According to him, “The President also approved that the 2% charge that makes up the Cabotage Fund should continue to accrue to the CBN Treasury Single Account (TSA) and each time the account hits $50m, the Minister of Transportation should, on the recommendation of NIMASA, direct the CBN to release the amount to any of the five banks for disbursement”.
“We have received the approval of the President to disburse the funds. It is now left for the key players to actualise the approval by the President.”
Sambo stated that the maritime sector would be a major income earner for the country if properly managed, adding that it was fulfilling for him to lead the historic process of disbursing the Cabotage Funds.
Section 44 part VIII of the Cabotage Act 2003 provides for the establishment of the Cabotage Vessel Financing Fund (CVFF) and a 2% deduction on cabotage-protected trade earnings goes into the savings for the development of indigenous tonnage (ships) in Nigeria.
The Bankers and other critical stakeholders had hours of closed-door deliberation with the Minister to chart out a clear course for the final disbursements in the coming days.