Ultimate magazine theme for WordPress.

Amaechi sets up Guidelines Committee to disburse N72 bn Vessel Financing Fund

  … ‘Only Contributing Shipowners

The Honourable Minister of Transportation, Mr. Rotimi Amaechi

Ahead of a planned commencement
of the disbursement of the Cabotage Vessel Financing Fund (CVFF), the Federal
Government has set up a committee to develop guidelines for the distribution of
the fund. 

Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi,
established the committee at a meeting on Thursday in Lagos with maritime

He said the panel, selected from among shipowners , would review existing guidelines and come up with a workable document.

That was as the Director-General
of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku
Peterside, who was chosen as Chairman of the committee, said only shipowners,
who are contributors to the fund, would be qualified to access the facility.

Amaechi stated, “We have looked
at the old guidelines and we have seen that it will not be favourable to every
party involved. Our commitment towards ensuring the disbursement of the CVFF
remains unwavering, hence, the reason we are setting up this committee to look
at the guidelines and come up with a workable one that will suit all parties

The Minister said part of the
economic benefits of the disbursement of the fund would be creation of
employment for Nigerians and enhancement of indigenous capacity in the maritime
industry, which will help grow the Nigerian economy.

In his address at the forum,
Dakuku disclosed that the CVFF had grown to $200 million (about N72 billion).
He said only contributors to the fund will be eligible to access it.

Dakuku reiterated that the fund
was meant to promote indigenous capacity in the shipping sector by assisting
Nigerians in the procurement of maritime assets in line with the Cabotage Act,
which seeks to encourage indigenous participation in the maritime industry.

He also disclosed that in
addition to talks with the Central Bank of Nigeria (CBN) on how to make funds
available to operators in the maritime industry, the Agency was working with
the supervising Ministry to ensure that the CVFF was disbursed to qualified
applicants using a single digit interest rate.

The Director-General said, “On
our part as an Agency, our utmost goal is to grow the maritime sector and
encourage more indigenous participation. We are working with the Ministry of
Transportation and also discussing with the Central Bank of Nigeria, to see the
possibility of granting loans to qualified operators at single digit interest
rate, as this will give room for greater participation and also open up vistas
of opportunities for massive job and wealth creation in the sector.”

He said NIMASA was working with
stakeholders to ensure that the Cabotage Act was fully actualised through a
Five-Year Cabotage waiver cessation plan set for implementation from next

Members of the CVFF committee,
besides Dakuku, are Chairman, of Nigerian Ship Owners Forum, Mrs. Margaret
Orakwusi; Vice Chairman, C&I Leasing, Emeka Ndu; Managing Director, Starz
Marine, Engr. Greg Ogbeifun; and President, Nigerian Shipowners Association
(NISA), Aminu Umar, among others.

The CVFF is meant to help
Nigerians buy ships and other assets to grow their capacity, support economic
growth, and compete favourably on the international scene.

Leave A Reply

Your email address will not be published.