Indigenous ship-owners lose hope over disbursement of $350m CVFF

Indigenous ship-owners have told the Nigerian Tribune that they have lost hope in the disbursement of the $350m Cabotage Vessel Financing Fund (CVFF) any time soon.

Generated from a surcharge of 2 percent of the contract sum performed by vessels engaged in coastal trade, the CVFF was established by the Coastal and Inland Shipping Act 2003 for the purpose of developing indigenous ship acquisition capacity, and to provide financial assistance to indigenous/domestic coastal shipping operators.

Speaking with the Nigerian Tribune exclusively in Lagos, the National President of the Nigerian Shipowners Association (NISA), Mr. Sola Adewunmi revealed that many of the association members have lost hope in the disbursement of the fund.

According to the NISA President who is also the Chief Executive Officer, Equatorial Energy Company, “Yes, we have had series of meetings on the CVFF disbursement with officials of the Ministry of Marine and Blue Economy, but I can confirm to you that nothing has come out from those meetings.

“The meetings have focused on how the money will be disbursed, the modalities that will be used. At a point, an international consultant was brought in to discuss with us how the money will be disbursed.

“It was part of the Key Performance Indicators of the Ministry of Marine and Blue Economy that the money should be disbursed before the end of 2024. However, here we are at the end of the year, nothing has happened.

“We at NISA are totally disappointed with government over the CVFF disbursement. We are not impressed at all with all what has been done. We have indigenous ship-owners who cannot buy ships. There is no indigenous ship-owner today that is willing to go and borrow money at 37 percent just to buy a vessel. There is no indigenous ship-owner today in Nigeria that is ready to take such a risk to go and borrow money given the time range that will be placed on such loan for repayment,” he said.

When asked if he believes the fund is still intact, the NISA National President stated, “Yes, people have been saying the money is no longer there. That it has been used for other purposes. But the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dayo Mobereola has debunked such claims and has insisted that the money is still there. So, we are still waiting and will continue to wait for them to disburse.”

When asked if he sees any hope of disbursement taking place next year, Mr. Sola Adewunmi explained: “The zeal that was there before is no longer there. indigenous ship-owners have started looking for other alternatives to survive. There is no hope next year that the fund will be disbursed. If it comes, fine, but my members are no longer waiting for it. Many have moved on with their lives through other means.”

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