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Central Bank of Nigeria (CBN) will release the Cabotage Vessel Financing Fund (CVFF) to the five selected primary lending institutions whenever the money reaches $50 million from the 2 percent charge accrued to the Treasury Single Account (TSA), Mu’azu Jaji Sambo, Minister of Transportation has said.
Section 44 part VIII of the Cabotage Act 2003 provides for establishing the Cabotage Vessel Financing Fund (CVFF) and a 2 percent deduction on cabotage-protected trade earnings goes into the savings for the development of indigenous tonnage (ships) in Nigeria.
The Minister said in a statement signed by the Ministry’s Director of Press and Public Relations, Henshaw Ogubike, on Thursday (February 23, 2023), President Buhari has directed that the 2% charge that makes up the CVFF continue to accrue to the CBN Treasury Single Account (TSA) and that when the account reaches $50 million, the Minister of Transportation should direct the apex bank to release the amount to any of the five commercial banks for disbursement on the recommendation of NIMASA.
President Buhari had authorized the immediate disbursement of the Cabotage Vessel Financing Fund (CVFF) through five primary lending institutions, namely Polaris, Zenith, Union, Jaiz, and UBA banks.
This was after a meeting with representatives and heads of the five primary lending institutions, including the MDs and CEOs of Polaris Bank, UBA, Union Bank, Zenith Bank, Jaiz Bank, and the DG of, Zenith Bank, the DG of NIMASA, and the MD of Shipping at NNPC, among other stakeholders.
He did, however, call for a concerted effort by key stakeholders to make the Cabotage Vessel Financing Fund (CVFF) disbursement a reality.
The Minister noted that it had taken 18 years to obtain presidential approval for the disbursement and charged the key stakeholders with expediting action on the necessary details to enable the funds to be disbursed quickly.
“We have received the approval of the President to disburse the funds.” “It is now left for the key players to actualize the approval by the President,” he said.
Sambo said the maritime sector would be a significant 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.
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