From Anthony NwaGod, Lagos
After 19 years of several failed promises of disbursement, the Federal Government has once more assured that the Cabotage Vessel Financing Fund (CVFF) will soon be available to indigenous coastal ship owners.
The Minister of State for Transportation, Sen. Gbemisola Saraki,
who said the process was ongoing, disclosed that the CVFF is now $350 million, having risen 56 per cent since last year, when the former minister, Chibuike Amaechi, disclosed that it was $195 million.
Saraki, who spoke last weekend in Lagos during a ministerial briefing after a week-long tour of the Western Ports, said it was a shame that no indigenous ship owner has been able to access the fund established to enable them acquire vessels nearly 20 years after it came to being.
“The guidelines for the disbursement of the fund have been formulated and would soon be presented to the National Assembly for approval,” she explained.
“It would immediately be followed by the actual disbursement of the funds to the already shortlisted beneficiaries.
“The delay in the disbursement is not the fault of the Federal Ministry of Finance, but rather more of securing approval of the guidelines for the disbursement from the National Assembly. This would be done in no distant time.”
She added: “It is really very disheartening that the fund has not been disbursed, but we will work with the National Assembly to ensure its disbursement.
“Just watch, it has to be disbursed, especially with the coming on stream of the African Continental Free Trade Area AfCFTA.
“In the course of this visit, I have also interacted with so many stakeholders, including the indigenous ship owners. I know the number of vessels that Nigerians had 10 years ago and I know how many they have now.
“It is really a shame that this fund has not been disbursed, I learnt the value is $350 million now and I am not sure any part of it is missing.
“We will work with the National Assembly to pass the guidelines. It is not really about the Federal Ministry of Finance but I think it is more of the political will to disburse it, and I think we have the political will to do so.”
The Federal Government set up the CVFF in 2003 to address the indigenous ship owners’ lack of capacity.
A two per cent contribution by indigenous ship owners on every contract executed in the nation’s waters, the fund is contained in the Coastal and Inland Shipping Act of 2003 (otherwise known as Cabotage Act 2003).
The purpose is to aid indigenous operators in vessel acquisition financing, with such disbursement backed by Section 42(1)-(2) of the Cabotage Act 2003 to promote capacity for indigenous ship acquisition through financing assistance to Nigerian operators in local coastal shipping.
