After 17 Years of Waiting, FG to Share N145bn Cabotage Fund as Zenith, UBA, Others Prepare for Implementation
- The federal government has approved over N145bn($350m) for disbursement to indigenous shipowners
- The money, which is from the Cabotage Vessels Finance Fund (CVFF), will be given only to those shortlisted from March
- Mu'azu Sambo, the Minister of Transport, met with Primary Lending Institutions (PLIs), including Zenith and United Bank of Africa, to discuss the disbursement
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Indigenous shipowners in Nigeria are set to receive the first disbursement of the Cabotage Vessels Finance Fund (CVFF) from Primary Lending Institutions (PLIs).
Unless there are any last-minute changes, the disbursement will kick off on March 2023.
According to a report by Leadership, the available funds for disbursement stand at slightly over N16 billion and $350 million.
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The CVFF is an intervention fund created by the federal government to develop indigenous shipping capacity in Nigeria to maintain existing vessels or purchase new ones.
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The Punch reports that applicants of the Fund are expected to make an equity contribution of 15%, while the Nigerian Maritime Administration and Safety Agency (NIMASA) will make an equity contribution of 35%. The banks will provide the remaining 50%.
FG speaks on the Cabotage Fund
The Minister of Transport, Mu'azu Sambo, recently met with the managing directors of the five approved PLIs in Abuja to discuss disbursement procedures.
The PLIs include Polaris Bank, United Bank of Africa (UBA), Union Bank, Zenith Bank, and Jaiz Bank.
Sambo also disclosed that President Muhammadu Buhari had approved the immediate disbursement of the CVFF.
The Federal Ministry of Transportation disclosed that President Buhari had approved the immediate disbursement of the CVFF.
Sambo noted that it has taken 17 years to get presidential approval for the disbursement and charged the key stakeholders to expedite action on the necessary details to facilitate the quick distribution of the funds.
Leadership also revealed that the statement added that Buhari equally approved that the 2% charge that makes up the Cabotage Fund should continue to accrue to the Central Bank of Nigeria's Treasury Single Account (TSA).
On how the money will be distributed, the statement noted that each time the account hits $50 million, the minister of Transportation, on the recommendation of NIMASA, will direct the CBN to release the amount to any of the five banks for disbursement.
CBN gives breakdown of intervention across sectors
In another report, the Central bank of Nigeria has provided a detailed analysis of how much it spent over the years on various interventions.
The interventions cut across different economic sectors have gulped over N4 trillion.
Beneficiaries of the interventions are expected to repay the money as it is a loan, not a grant.
Source: Legit.ng
