Greg Ogbeifun, president, Shipowners Association of Nigeria (SOAN), says the association has written to the Nigerian Maritime Administration and Safety Agency (NIMASA) demanding immediate disbursement of the Cabotage Vessel Financing Fund (CVFF).
Speaking in Lagos at the weekend, Ogbeifun said his members, who have contributed, would also engage NIMASA to demand for prompt disbursement of the fund.
“For instance, Starz Group alone has contributed $1.25 million; C&I Leasing contributed $1.8 million; Slok contributed over $1 million, while Seabulk has contributed $1.3 million. We have all contributed to the fund and if we have genuine transaction, we have the right to meet the government to disburse the fund for the benefit of all ship owners,” he said.
CVFF as a product of the Coastal and Inland Shipping Act (Cabotage) of 2003, was established after the passage of Cabotage Law. The fund, which is being managed by commercial banks known as selected primary lending institutions (PLIs), appointed to participate in the lending, monitoring and management of loans under the CVFF scheme, is aimed at promoting the goals of Cabotage Act.
The resources in the fund is realised from collection of about 2 percent of the freight carried by any indigenous owned vessel, meaning that the money in the fund is gotten from businesses executed by local operators, whom the fund is expected to benefit.
“Members of SOAN who have genuine transaction have applied for CVFF and we are waiting to see how NIMASA will react to the applications. We will also collectively engage them. We are not going on a confrontation and people in government that are responsible for the fund need idea on how to appropriately disburse the fund without hitting the rock and to maintain visible achievement,” he said.
According to Ogbeifun, he is convinced that the administration of President Muhammadu Buhari is desirous to disbursing the fund to grow shipping capacity, as “the new administration is desirous of breaking the jinx of disbursing the CVFF and the way to do it is to test the water.”
Adewale Ishola, a ship operator, said NIMASA needed to release the money accumulated in the Cabotage fund to finance and empower local ship operators, which was the original reason for setting up the fund.
“Disbursement of this fund to credible shipping firms can help the nation’s economy, especially as oil revenue continue to shrink, it will help reduce pressure on government in terms of wealth and job creation,” he said.
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