Chamber of Shipping rues delay in disbursement of $700m CVFF

The Nigerian Chamber of Shipping (NCS) has bemoaned the delay by successive Federal Government administrations in disbursing the $700 million Cabotage Vessel Financing Fund (CVFF), urging whoever is appointed next as minister of transportation to begin the implementation process from where the last administration stopped.

Speaking with the Nigerian Tribune in Lagos, President of the Chamber, Mr Aminu Umar stated that, “The past administration of former President Muhammadu Buhari has already done so much as regards efforts towards the disbursement of the CVFF fund.

“My advice to whoever is appointed minister of transportation will be that he or she should continue from where the last administration stopped. If the government is genuine about disbursing the CVFF fund, then whoever comes in as minister of Transportation must continue from where the last minister stopped.

“This is very important in-order to avoid a situation where the entire process is started all over again. We cannot afford to start re-inventing the wheel of disbursement from the beginning since there is already a template that is on ground.

“if you remembered what happened to the last administration; it took time for them to start, and by the time they will be concluding the disbursement efforts to a logical stage, the lifespan of that administration was already winding down.

“We cannot afford to have a repeat. The current administration must continue from where the last administration stopped. Past administrations have started the disbursement all over again, waited too long to conclude, and by the time it’s getting to a stage where hopes are high, the lifespan of that administration will be over.

“I pray this administration takes up from where the last administration stopped so that indigenous ship-owners can take advantage of the fund. It’s been about 20 years since the CVFF fund was established, yet no single vessel owner has benefited from the fund even though we keep contributing our two percent to the fund since it is statutory.”

The Cabotage Vessel Financing Fund was established by the Coastal and Inland Shipping (Cabotage) Act 2003. The Fund was established for the purpose of developing indigenous ship acquisition capacity, and to provide financial assistance to indigenous/domestic coastal shipping operators. The Fund is generated from a surcharge of two percent of the contract sum performed by vessels engaged in coastal trade, monies generated from tariffs, fines and fees for licenses and waivers, a sum periodically approved by the National Assembly, and interests that accrue from loans granted from the Fund. The Fund is administered by the Nigerian Maritime Administration and Safety Agency (NIMASA).

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