FG Moves to Disburse $350 Million Cabotage Fund to Nigerians to Boost Economy
- The Nigerian government has begun the process of disbursing the Cabotage Vessel Financing Fund (CVFF) kept with the Central Bank of Nigeria (CBN)
- The fund is key to job creation in the maritime sector and essential to vessel financing and growing the country’s economy
- The Minister of Finance, Wale Edun, revealed the importance of disbursing the fund, saying President Bola Tinubu is committed to the plan
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian government has concluded plans to disburse the Cabotage Vessel Financing Fund (CVFF) kept with the Central Bank of Nigeria (CBN) to drive the country’s economy, create employment and boost Nigeria’s place as a key maritime destination in Africa.
The minister of Finance, Wale Edun, reiterated President Bola Tinubu’s commitment to disbursing the fund.
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NIMASA to collaborate with FG over CVFF
NIMASA’s head of public relations, Osagie Edward, said the disbursement was the focus of discussions between the agency’s director general, Dayo Mobereola and the finance minister.
The minister stressed that the fund’s disbursement is a priority, which is expected to impact the economy positively.
The New Telegraph reported that NIMASA’s DG explained that the ministry of Marine and Blue Economy has seen the fund’s disbursement as an important performance indicator in the ministry.
According to him, Gboyega Oyetola, the minister of Marine and Blue Economy, directed NIMASA to engage with the finance ministry to resolve challenges and establish frameworks to fast-track the CVFF disbursement to unlock the sector’s potential.
The NIMASA boss said that funds had been kept with the CBN since the Treasury Single Account (TSA) was implemented.
NIMASA, FG create committee for disbursement
To accelerate the process, Edun has approved the inclusion of a representative from the finance ministry in NIMASA’s in-house committee on CVFF disbursement under the Ministry of Marine and Blue Economy’s supervision.
Edun stressed the importance of regular updates and transparency in using the fund, ensuring that contributors and key stakeholders benefit while placing Nigeria’s maritime industry on the path to sustainable growth.
House of Reps intervenes
In 2023, the House of Representatives approved the disbursement of the $700 million Cabotage vessel fund.
The Coastal and Inland Shipping (Cabotage) Act of 2003 established the fund to boost the development and growth of indigenous ship purchase capacity by providing financial assistance to Nigerian operators in the domestic shipping business.
The House asked the Nigerian Maritime Administration and Safety Agency (NIMASA) to stop the planned fund disbursement to individuals and companies.
It also asked the House Committee on Local Content to interface with external auditors to audit all contracts entered into in the cabotage regime and report to the House.
Legor Idagbo, chairman of the Committee, told journalists in Abuja on Thursday, June 1, 2023, that investigations showed that due process was followed in the planned disbursement.
According to Idagbo, the Committee asked NIMASA and the Ministry of Transport to provide detailed information on the total amount accrued to the fund and the amount disbursed from inception.
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He said the Committee met with the Minister of Transport and DG of NIMASA on May 11, 2023, to find out the details regarding the issue.
After 17 years of waiting, FG to share N145bn Cabotage Fund
Legit.ng earlier reported that indigenous shipowners in Nigeria were 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 in March 2023. The available funds for disbursement stood at slightly over N16 billion.
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Source: Legit.ng
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
Kola Muhammed (Copyeditor) Kola Muhammed is an experienced content strategist who has overseen content and public relations strategies for some of the biggest (media) brands in Sub-Saharan Africa.
