CVFF: -₦‎16 Billion, $350 Million Dollars Available For Disbursement- Jamoh

–Appoints Union, Zenith, Polaris, UBA and Jaiz Banks as Primary Lending Institutions.

 

 

President Muhammadu Buhari, GCFR, has approved the immediate disbursement of the Cabotage Vessel Financing Fund, CVFF, to qualified Nigerians as part of the Federal Government’s commitment to grow indigenous capacity of Nigerians to own vessels.

The Honorable Minister of Transportation, Engineer Mu’azu Jaji Sambo who made the announcement at a press conference this weekend said that the Presidential approval received by the Ministry on Friday confirmed Union, Zenith, Polaris, UBA and Jaiz Banks as the appointed Primary Lending Institutions for the disbursement of the funds.

The Director General of the Nigerian Maritime Administration and Safety Agency, NIMASA, Dr. Bashir Jamoh, OFR, announced that the funds available for disbursement was  slightly over ₦16 billion naira 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 the National Seafarers Development Programmes NSDP ,the Director General of NIMASA said, “Today marks another milestone on the human capacity development drive of the maritime industry as championed by NIMASA.

“The Honourable Minister may respectfully recall that the Agency in fulfilling one of its core functions in the area of Maritime Capacity Building in 2008 initiated the NSDP with the sole mandate of training Nigerian youths to become seafarers and Naval Architects.

“The programme was designed to train Nigerian youths up to Degree level in Marine Engineering, Nautical Sciences and Naval Architecture in some of the best Maritime Training Institutions (MTIs) abroad and to position them to compete effectively in the global Maritime Industry.

“It was noted that the number of Nigerian seafarers on ocean going vessels as at then had depleted over the years and the urgent need to boost it adequately for effective implementation of the coastal and inland shipping policy of the Government, informed the initiative.

“At some point, it was said that Nigeria had less than ten (10) Seafarers on ocean going vessels, while countries like the Philippines had over Four hundred thousand (400,000), and currently earn over Six billion U.S dollars ($6,000,000,000.00) in forex inflow from their seafarers employed around the world.

“Countries like India, Indonesia and China also have their nationals all around the world working in the maritime industries. It is hoped that with continuous progress made and better projections in the NSDP, Nigeria will soon be among the major players in the global maritime sector.

“It is important to note that from inception to 2020, the programme has enrolled 2,041 students, while 892 are now licensed deck and engine officers including naval Architects, the rest are in their final stage of the programme.

“It may please the Minister to know that about 486 of the graduates are now gainfully employed and sailing in both coastal and ocean going vessels.

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.

His words: “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.”

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.