The federal government has appointed five commercial banks in the country as primary lending institutions, PLIs to disburse the Cabotage Vessel Financing Funds, CVFF.
The Funds, according to the Director General, Nigerian Maritime and Safety Agency, NIMASA, Bashir Jamoh, has both naira and dollar components of N16 billion and $350 million, respectively.
The CVFF was set up many years ago to assist indigenous ship owners to acquire world-class vessels for their business but has not been disbursed due to delay on the part of the federal government.
The Buhari administration seems to have now shown readiness to finally make the funds available by approving the selection of the five commercial banks to disburse the multi-million dollar funds to qualified indigenous ship owners, maritime experts say.
Speaking on the development, the Minister of Transportation, Muaza Sambo said Union Bank, Zenith Bank, Polaris Bank, UBA, and Polaris Bank have been approved by President Buhari as PLIs.
Sambo said: “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.
“We have made a case that the funds belong to you, the ship owners. Mr. President is a man who respects the law and is on the same page with us to proceed with immediate effect. We will be liaising with the Minister of Finance, Budget and National Planning and the Governor of the Central Bank of Nigeria (CBN) to work immediately for the approval.
“We have pledged to the president that they will continue to allow the funds to go into the Treasury Single Account, TSA; however, whenever the money hits the threshold of $50million, the CBN upon recommendation from the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Federal Ministry of Transportation, would be expected to transfer the funds to the Primary Lending Institutions.”
