Home News FG Sets Up Committee For Disbursement Of Cabotage Vessel Financing Fund. ….Appoints Dakuku, Chairman.

FG Sets Up Committee For Disbursement Of Cabotage Vessel Financing Fund. ….Appoints Dakuku, Chairman.

by timenews
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The Federal Government has set up a committee to develop guidelines for the disbursement of N72bn Cabotage  Vessel Financing  fund (CVFF).
The Committee which was set up by the Minister of Transport. Rt. Hon. Rotimi Amaechi on 23rd of January, 2020  is to be headed by the Director General of Nigerian Maritime  Administration and Safety Agency(NIMASA), Dr. Dakuku Peterside
Other members of the committee include 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.
Rt. Hon. Amaechi said the committee which was drawn from among shipowners
, would review the guidelines and come up with workable one that would suit all parties involved..
“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 for the establishment of the committee”, he said.
He further explained that some of the benefits accruing from the disbursement of the fund include the creation of employment for Nigerians and the enhancement of indigenous capacity in the maritime industry , which would affect the Nigerian economy positively.

In his speech on the occasion, The DG of NIMASA and the Chairman of the committee, Dr. Dakuku Peterside, revealed that only contributors to the fund would be eligible to access it, adding that the Fund had grown to $200m.

Dakuku pointed out that the fund which 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,  seeks to encourage indigenous participation in the maritime industry, adding that  discussions were on with the Central Bank of Nigeria (CBN) on how to make funds available to operators in the maritime industry, while the Agency was working with the supervising Ministry to ensure that the CVFF was disbursed to qualified applicants using a single digit interest rate.
“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 adds.He further disclosed that 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 year.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.

It would be recalled that the Minister of Transport, Rt. Hon. Rotimi Amaechi had in a forum in December, 2019 announced the federal government’s approval for the disbursement of the Cabotage Vessel Financing Fund.
Photo: Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi.

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