20 years after, NASS yet to approve money for $200m CVFF

Almost 20 years since the Coastal and Inland Shipping Act 2003 (otherwise known as the Cabotage Act)   established the procedure for the administration and implementation of the Cabotage Vessel Financing fund (CVFF), the National Assembly has yet to approve or determine any particular sum for the fund which currently stands at $200 million.

Section 43 of the Act provides that the following shall be paid into the Fund: A surcharge of two per cent of the contract sum performed by any vessel engaged in cabotage trade; a sum as shall, from time to time, be determined and approved by the National Assembly; monies generated under the act including tariffs, fines and fees for licences and waivers; and such further sums accruable by the fund by way of interest paid on and the repayment of the principal sums of any loan granted from the fund.

While the cabotage fund has seen immense contribution from two per cent surcharges of the contract sum of indigenous ship owners and monies generated under tariffs, fines and fees for licences and waivers, the National Assembly since inception of the fund has yet to determine and approve any sum of money into the CVFF.

Disclosing this to the Nigerian Tribune exclusively, a leading indigenous ship owner who declined not to have his name in print, explained that the fourth source of funding for the CVFF has yet to generate any kobo into the fund because the fund has not yet been disbursed as loans to any ship owner.

According to the indigenous operator, “The CVFF, when enacted in 2003 from the Coastal and Inland Shipping Act, was expected to be funded from four major sources of revenue.

“However, almost 20 years after, the National Assembly has yet to fulfill its obligation of determining and approving a sum into the CVFF from time to time. This is well captured in Section 43 of the Act.

If the National Assembly had been living up to its responsibility as regards the fund, what we have in that fund should have exceeded the paltry $200million that the director-General of the NIMASA said we have in it.

“Tell me, how many vessels can $200million buy? Do you know the number of indigenous shipowners that we have in Nigeria’s maritime sector? $200million is chicken feed if we are talking of enhancing capacity among the indigenous operators.

“The fourth source of funding has yet to be attained because the fund has not been disbursed.Operators have yet to get the money, so that fourth aspect of fund cannot come in until the money is disbursed.”