The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA),Dr. Bashir Jamoh, has urged indigenous shipowners to come together in groups so that they can access the over $360 million, about N427 trillion, Cabotage Vessel Financing Fund (CVFF).
Though the agency had made recommendations to the Minister of Marine and Blue Economy, Gboyega Oyetola, Jamoh appealed to the shipowners to borrow a leaf from the consolidation, which happened in the banking sector.
According to him, coming together will also enhance the capacity of indigenous shipowners to take advantage of the huge potentials in the coastal trade
The CVFF fund, which was established by the Coastal and Inland Shipping (Cabotage) Act 2003, is to develop the indigenous ship acquisition capacity and to provide financial assistance to Nigeria operations in the domestic coastal shipping business.
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The source of funds for the CVFF is mainly from a surcharge of two per cent of contract sum performed by any vessel engaged in coastal trade, tariff, fines and license fees and any other amount determined and approved by the National Assembly.
To ensure easy disbursement of the fund, the federal government, had in December 2022, appointed five commercial banks for disbursement of the $360 million 17 years after the CVFF was established.
The banks are Union Bank, Zenith Bank, Polaris Bank, United Bank for Africa, UBA, and Jaiz Bank.
The disbursement of the fund had been enmeshed in controversies since the government started promising shipowners that it was ready to disburse the fund.
In a chat with our correspondent, Dr. Bashir Jamoh, urged ship owners to come together in groups to be able to access the fund.
