The Minister of Transportation, Honourable Rotimi Amaechi, on Thursday night, confirmed the long-awaited approval by President Muhammadu Buhari for the disbursement of the Cabotage Vessel Financing Fund (CVFF), which according to Industry sources now stands at $124m (N44.6bn).
The Minister of Transportation stated this while speaking at the Nigerian Shippers’ Council Stakeholders Appreciation Night (NSC SAN) 2019, which held in Lagos.
He said the ministry would begin meetings with indigenous ship owners in January to commence the disbursement process.
According to the Honourable Minister of Transportation, “I have got approval to disburse the CVFF.
“I just want to use this opportunity to inform stakeholders that the President has approved the cabotage fund and by Tuesday, 16th of December 2019, I will meet with the Nigerian Shippers’ Council (NSC) and the Nigerian Maritime Administration and Safety Agency (NIMASA) to look at the dynamics of the fund.
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“In January, we will invite the operators for their proposals and to see the nature of their businesses and how they can get the aid. The President has given the approval and we will begin the process to disburse it by next year.”
Amaechi also urged the National Assembly to support the fight against maritime insecurity currently plaguing the nation’s maritime sector, adding that he was determined to fight maritime insecurity to a standstill.
In his words, “the National Assembly should please back us in the fight against insecurity on our waterways.
“I would like the National Assembly to note that we will fight the issue of insecurity to a standstill so that no more killings or kidnappings will happen on our waterways.
“Currently, India has issued a statement that its citizens should beware of Nigerian waters.
“Nigeria is currently ranked number one in terms of insecurity among maritime nations, while Somalia, who used to be number one, is currently number three.”
He admonished Nigerian elites to allow Nigeria to grow as a nation.
“We can fight the war. It is not only kidnappers, bunkers but also the elites who are benefiting from the activities of insecurity on our waterways,” he added.
The Minister also commended the management of the Nigerian Shipper’s Council for the cordial relationship with the staff, applauding the management’s initiative of Housing Scheme for more than 100 staff.
The CVFF is a special intervention fund created alongside the country’s Coastal and Inland Shipping Act, 2003, otherwise known as the Cabotage Act, to assist indigenous ship owners with the acquisition of vessels to enable them to operate maximally in the country’s cabotage trade.
The fund was also to form a source of aid to enable local ship owners to compete favourably against foreign ship owners in crude oil freighting on the Nigerian waters.
The CVFF has however remained undisbursed since its creation in 2003, despite efforts by industry operators to access the fund which is under the custody of NIMASA.
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