Following President Muhammadu Buhari’s approval to disburse the $350million and N16billion Cabotage Vessel Financing Fund (CVFF), Minister of Transportation, Mu’azu Jaji Sambo, has said that the Central Bank of Nigeria (CBN) will be directed to release the funds to the five selected Primary Lending Institutions each time the money hits $50 million from the 2 per cent charge accrue to the Treasury Single Account (TSA).
The Minister stated this in a statement signed on Thursday by Ministry’s Director of Press and Public Relations, Henshaw Ogubike, in Abuja after a meeting with representatives and Heads of the five Primary Lending Institutions, the MD/CEOs of Polaris Bank, UBA, Union Bank, Zenith Bank, Jaiz Bank, the DG NIMASA, the MD Shipping NNPC among other stakeholders.
The Minister said that President Buhari has directed that 2 per cent charge that makes up the CVFF should continue to accrue to the CBN Treasury Single Account (TSA) and each time the account hits $50million, the Minister of Transportation should, on the recommendation of NIMASA, direct the apex bank to release the amount to any of the five commercial banks for disbursement.
The Minister reiterated that President Buhari had approved the immediate disbursement of the Cabotage Vessel Financing Fund (CVFF) through five primary lending institutions, namely Polaris, Zenith, Union, Jaiz and UBA banks.
However, he called for a concerted effort by key stakeholders to make the quick disbursement of the Cabotage Vessel Financing Fund (CVFF) a reality.
The Minister noted that it has taken 18 years to get presidential approval for the disbursement and charged the key stakeholders to expedite action on the necessary details to facilitate the quick disbursement of the funds.
“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,” he said.
Sambo said 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 per cent 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 after the minister’s remark, to chart out a clear course for the final disbursements in the coming days.
SOURCE: THE SUN
