Buhari approves disbursement of cabotage vessel financing fund

President Muhammadu Buhari, has approved the immediate disbursement of the Cabotage Vessel Financing Fund, CVFF, to qualified Nigerians.

This is part of the federal government’s commitment to grow indigenous capacity of Nigerians to own vessels.

The Minister of Transportation, Engr Mu’azu Jaji Sambo, who made the announcement at a press conference this weekend said Union, Zenith, Polaris, UBA and Jaiz Banks have been appointed as Primary Lending Institutions for disbursement of the funds.

“The president of the Federal Republic of Nigeria, Muhammadu Buhari has approved my request for the disbursement of the Cabotage Vessel Financing Fund. It is my belief that finally we are going to break the 17-year-old jinx that has hindered the expansion of the maritime industry.

The CVFF was established alongside the Nigerian Coastal and Inland Shipping (Cabotage) Act of 2003, to empower indigenous ship owners to take control of the nation’s coastal and inland shipping business, otherwise known as Cabotage trade. Applicants of the Fund would make an equity contribution of 15 per cent while NIMASA would make an equity contribution of 35 per cent; and 50 per cent would be provided by the banks.

The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamo, said the funds is slightly over ₦16 billion and $350 million dollars. In his words  

“What we have collected so far is in two folds made up of Naira and Dollar components. So far, the Funds available under the CVFF in naira component is around Sixteen Billion naira (₦‎16,000,000,000:00), while contributions in Dollar component hovers around the Three Hundred and Fifty Million Dollar mark ($350,000,000:00).

On his part, the Honorable Minister noted that the Ministry of Transportation has commenced liaison with the Minister of Finance and the Governor of the Central Bank of Nigeria, for the implementation.