Guidelines For N72.4bn Cabotage Fund Disbursement Coming
The Federal Government of Nigeria through the Minister of Transportation, Honourable Rotimi Amaechi has set up a Committee to come with guidelines for the disbursement of about $200 million or N72.4 billion Nigeria Cabotage Fund to indigenous ship owners.
The Committee which is headed by the Director-General of Nigerian Maritime Administration and Safety Agency (NIMASA), Mr. Dakuku Peterside, has other members of the Committee as Temisan Omatseye, a former Director-General, Margaret Orakwusi, Chairperson, Nigerian Ship-owners Forum and Aminu Umar, Managing Director, Sea Transport Services Nigeria Limited, among others.
The Cabotage Vessels Financing Fund (CVFF) is an intervention fund created alongside the Coastal and Inland Shipping Action, 2003, otherwise known as the Cabotage Act. The fund is meant to provide leverage to indigenous ship owners for acquisition of vessels for the purpose of trading on Nigerian cabotage area. The fund has remained undisbursed to ship owners since 2003, but Amaechi said the fund had been earlier “applied to building a maritime university and faculties of maritime in other universities across the country.”
Addressing newsmen shortly after a meeting with indigenous ship-owners and other maritime stakeholders in Lagos on Thursday, the Minister said, “What we have agreed is to set up a committee that will come forward with the proposed guidelines that I will send to the National Assembly. The committee for developing the guidelines would be chaired by Dakuku Peterside.
“In the past, the money was applied to building a maritime university and faculties of maritime in other universities across the country. This would be the first time the money is applied to ship owners directly.”
In line with efforts to moderate the risk involved in the disbursement, the minister stated that financial institutions would be involved and the financial risk would be borne by the lending institutions.
According to him “The banks will be involved in developing the criteria for the disbursement of the fund, so the risk would be borne by the lending institutions,”
Speaking further, he explained that the Dakuku Committee will among other things, determine the interest rate for the fund, which is to be taken as a loan by shipowners who would meet the disbursement guidelines.
The DG, NIMASA on his part said, “The meeting was convened on the instance of the minister to discuss the singular issue of CVFF disbursement which the minister has gotten approval from the president. After extensive discussions by the stakeholders here, it was decided that the committee should come up with the draft guidelines.
“The minister would study this draft and pass on to the National Assembly for approval in line with the Cabotage Act. Thereafter, we would move to the next phase of actual disbursement using the banks as a platform to be disbursed.”
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