The Federal Government has urged banks and stakeholders to work towards the quick disbursement of the Cabotage Vessel Financing Fund (CVFF).
Mu’azu Sambo, the minister of transportation, made the call at a meeting with representatives of the primary lending institutions and other key stakeholders.
This is contained in a statement by Henshaw Ogubike, the director of press and public relations of the ministry on Thursday in Abuja.
Sambo said the ministry had received the approval of the president to disburse the funds, and it was now left for the key players to actualise the approval by the president.
He said President Buhari had approved the immediate disbursement of the Cabotage Vessel Financing Fund through five primary lending institutions, namely Polaris, Zenith, Union, Jaiz and UBA.
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“The president also approved that the 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 $50 million, the minister of transportation should on the recommendation of the Nigerian Maritime Administration and Safety Agency (NIMASA), direct the CBN to release the amount to any of the five banks for disbursement,” Sambo said.
The minister said that it had taken 17 years to get presidential approval for the disbursement and urged the key stakeholders to expedite action on the necessary details to facilitate the quick disbursement of the funds.
Sambo said the maritime sector would be a major income earner for the country if properly managed, adding that it was fulfilling for him to lead the historic process of disbursing the cabotage funds.
Section 44, Part VIII of the Cabotage Act 2003 provides for the establishment of the Cabotage Vessel Financing Fund and a two percent deduction on cabotage-protected trade earnings goes into the savings for the development of indigenous tonnage (ships) in Nigeria. NAN
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