Don’t disburse N44.6bn CVFF to mushroom ship-owners, Group warns FG

Ahead of the planned disbursement of the N44.6bn Cabotage Vessel Financing Fund (CVFF) by the Federal Government in January 2020 to indigenous ship-owners, the Nigerian Association of Master Mariners (NAMM) has warned that the process of disbursement should be well structured to avoid disbursement of funds to mushroom operators. This is even as the association urged regulatory agencies in the maritime sector to uphold the safety of lives and properties on Nigeria’s waterways.

Speaking during a press briefing in Lagos on Monday, President of NAMM, Captain Tajudeen Alao added that the Federal Government should ensure that come 2020, security for ships going through coastal waterways are well provided.

Captain Alao also highlighted areas in which government should engage in the maritime industry, which includes cabotage enactment fund, coastal state responsibility, maintenance of ports infrastructure amongst others.

According to Captain Alao, “Ahead of the CVFF disbursement next month, we want the government to engage the right people and therefore give this money to serious operators that can make the industry grow.

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“We do not want a situation where mushroom shipping companies will spring up and get a share of this money because we all know the CVFF money is now available.

“We also want to appreciate the government for deeming it fit to decide to disburse the CVFF funds to operators because this will go a long way in enhancing capacity among ship-owners in the nation’s maritime domain.”

On shipping, NAMM urged Nigeria to get it right in the area of the flag state and coastal State responsibility.

It would be recalled that the Honourable Minister of Transportation, Rt. Hon. Rotimi Amaechi had confirmed the long-awaited approval by Mr President for the disbursement of the CVFF, which according to Industry sources now stands at $124m (N44.6bn).

The Minister of Transportation had 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. In January, we will invite the operators for their proposals and 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.”