Nigerian Chamber of Shipping Caution Federal Government Over Delay in Disbursing $700 Million Cabotage Vessel Financing Fund

The Nigerian Chamber of Shipping (NCS) has raised concerns over the prolonged delay in disbursing the $700 million Cabotage Vessel Financing Fund (CVFF). The President of the Chamber, Mr Aminu Umar, has appealed to the incoming Minister of Transportation to pick up from where the previous administration left off.

Since its establishment in 2003 by the Coastal and Inland Shipping (Cabotage) Act, the CVFF has aimed to develop the capacity of indigenous ship acquisition and lend financial support to Nigerian coastal shipping operators. However, nearly two decades later, not a single vessel owner has benefited from the fund, despite contributions of two percent from their contract sum being made.

In a recent interview in Lagos, Mr Umar emphasized the need for continuity and urged the government not to start the disbursement process from scratch. He pointed out that previous administrations had suffered from delays and failed to disburse the fund before their tenures ended, leaving the process hanging.

"The past administration of former President Muhammadu Buhari has already done so much as regards efforts towards the disbursement of the CVFF fund," said Mr Umar. "My advice to whoever is appointed Minister of Transportation will be that he or she should continue from where the last administration stopped."

It is crucial to avoid repeating past mistakes and ensure that the disbursement process is swift and efficient, according to Mr Umar. He highlighted the need for the next administration to capitalize on the progress made and prevent any further unnecessary delays.

The CVFF is financed through various means, including a two percent surcharge on contracts performed by vessels engaged in coastal trade, tariffs, fines and fees for licenses, waivers, and loans granted from the Fund. The Nigerian Maritime Administration and Safety Agency (NIMASA) administers the Fund.

In conclusion, the non-disbursement of the CVFF has been a longstanding concern for indigenous ship-owners. The NCS urges the Federal Government to prioritize the implementation of the CVFF, ensuring that the fund is utilized for its intended purpose of supporting the growth and development of the Nigerian maritime industry.

Source of content: OOO News 2023-08-03 News

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