Deliberations on $700m CVFF disbursement on hold — Investigation

FINDINGS by the Nigerian Tribune have revealed that efforts to implement the disbursement of the $700 million Cabotage Vessel Financing Fund (CVFF) are currently on hold due to the delays in the appointment of a minister of transportation by the presidency.

It will be recalled that as of last check, the coordination agency of government in charge of the disbursement of the fund, the Nigerian Maritime Administration and Safety Agency (NIMASA), had rejected the 8.5 percent request from the five commercial banks mandated to disburse the funds.

However, speaking with the Nigerian Tribune on why efforts on disbursement of the CVFF has mellowed in recent weeks, a source in the Federal Ministry of Transportation revealed that the absence of a substantive minister of transportation has ensured that everything concerning the CVFF disbursement is put on hold.

The source said, “Since the last Federal Executive Council (FEC) under former President Muhammadu Buhari was dissolved, everything concerning the disbursement of the CVFF has been put on hold.

“The FMOT is the coordinating ministry in charge of the fund disbursement and if the minister is not on seat, nothing happens. There are certain correspondences that will require ministerial approval.

“We know where the process stopped and are eagerly awaiting the appointment of a new minister of transportation to continue from where the former minister stopped.”

The Federal Government had appointed five primary lending institutions, namely; Jaiz Bank, United Bank of Africa (UBA), Union Bank, Zenith Bank and Polaris Bank, to handle the disbursement of the $700 million CVFF disbursement to indigenous ship-owners in pursuant to the nation’s drive to enhance indigenous capacity.