CVFF: CBN to disburse funds to banks after every $50m accrual – FG

Ahead of the disbursement of the $350m and N16bn Cabotage Vessel Financing Fund (CVFF), the Minister of Transportation, Mu’azu Jaji Sambo has stated that President Buhari has directed that the 2% charge that makes up the CVFF should continue to accrue to the CBN Treasury Single Account(TSA) and each time the account hits $50m, the Minister of Transportation should, on the recommendation of NIMASA, direct the apex bank to release the amount to any of the five commercial banks for disbursement”.

The Minister, according to a statement signed on Thursday by the Ministry’s Director (Press and Public Relations), Henshaw Ogubike, stated this in Abuja at a meeting with representative and Heads of the five Primary Lending Institutions, the MD CEO of Polaris Bank, UBA, Union Bank, Zenith Bank, Jaiz Bank, the DG NIMASA, the MD Shipping NNPC and other stakeholders.

The Minister also called for a concerted effort by key stakeholders to make the quick disbursement of the CVFF a reality.

The Minister reiterated that President Buhari had approved the immediate disbursement of the Cabotage Vessel Financing Fund (CVFF) through five primary lending institutions, namely Polaris, Zenith, Union, Jaiz and UBA banks.

According to him, “The President also approved that the 2% charge that makes up the Cabotage Fund should continue to accrue to the CBN Treasury Single Account(TSA) and each time the account hits $50m, the Minister of Transportation should, on the recommendation of NIMASA, direct the CBN to release the amount to any of the five banks for disbursement”.

The Minister noted that it has taken seventeen years to get presidential approval for the disbursement and charged the key stakeholders to expedite action on the necessary details to facilitate the quick disbursement of the funds.

“We have received the approval of the President to disburse the funds. It is now left for the key players to actualise the approval by the President”, he said.

Sambo said the maritime sector would be a major income earner for the country if properly managed, adding that it was fulfilling for him to lead the historic process of disbursing the Cabotage Funds.

Section 44 part VIII of the Cabotage Act 2003 provides for the establishment of the Cabotage Vessel Financing Fund (CVFF) and a 2% deduction on cabotage-protected trade earnings goes into the savings for the development of indigenous tonnage (ships) in Nigeria.

The Bankers and other critical stakeholders had hours of closed-door deliberation after the minister’s remark, to chart out a clear course for the final disbursements in the coming days