Cabotage fund : Minister calls for immediate disbursement
… Meets managing directors of banks
The Minister of Transportation, Mu’azu Jaji Sambo, has called for concerted effort by key stakeholders to ensure immediate disbursement of Cabotage Vessel Financing Fund (CVFF).
The Minister said this in Abuja, during a meeting with representatives of Primary Lending Institutions, the MDs and CEOs of Polaris Bank, UBA, Union Bank, Zenith Bank, Jaiz Bank, the DG of NIMASA, the MD Shipping NNPC and other stakeholders.
He reiterated that President Muhammadu Buhari had approved immediate disbursement of CVFF through five primary lending institutions namely; Polaris, Zenith, Union, Jaiz and UBA.
According to him : “The President also approved that two percent 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 CBN to release the amount to any of the five banks for disbursement”.
The Minister noted that it has taken 17 years to get presidential approval for the disbursement of CVFF. He charged stakeholders to expedite action on the necessary details to facilitate quick disbursement of the funds.
His assertions : “We have received approval of the President to disburse the funds. It is now left for the key players to actualise the approval by the President”.
Sambo said the maritime sector would be a major income earner for the country if properly managed, adding that it is fulfilling for him to lead the historic process of disbursing the Cabotage Funds.
Section 44 part VIII of the Cabotage Act 2003 provides for establishment of the Cabotage Vessel Financing Fund and two percent 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
L-R: Surajo Salisu, MD Jaiz Bank, Adekunle Sonola,MD/CEO Polaris bank,Adaora Umeoji, DMD Zenith Bank, Mu’azu Jaji Sambo, Honourable Minister of Transportation, Oliver Alawuba, GMD UBA, Joe Mbulu, ED/CFO Union bank