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.
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.
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%.
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.