Bayo Akomolafe 
President Muhammadu Buhari has said that the 2 per cent charge, which makes up the cabotage fund should continue to accrue to the Central Bank of Nigeria (CBN)’ Treasury Single Account (TSA).
Also, the President said that each time the account hits $50 million,
the minister of transportation should, on the recommendation of the Nigerian Maritime Administration and Safety Agency (NIMASA), direct CBN to release the amount to any of the five banks approved for disbursement.
The Minister of Transportation, Mu’azu Jaji Sambo, who disclosed this in Abuja called for a concerted effort by five banks and key stakeholders to make the quick disbursement of the Cabotage Vessel Financing Fund (CVFF) a reality.
The ministry’s Director, Press, and Public Relations, Henshaw Ogubike said in a statement on Thursday that the minister has held a meeting with representative Heads of the Primary Lending Institutions- the chief executive officers of Polaris Bank, UBA, Union Bank, Zenith Bank, Jaiz Bank, the DG NIMASA, the MD Shipping NNPC, and other stakeholders.
He noted that President Buhari had approved the immediate disbursement of the Cabotage Vessel Financing Fund (CVFF) through five primary lending institutions, namely Polaris, Zenith, Union, Jaiz, and UBA banks.
According to him, “The President also approved that the 2 per cent charge that makes up the Cabotage Fund should continue to accrue to the CBN Treasury Single Account (TSA) and each time the account hits $50m, the Minister of Transportation should, on the recommendation of NIMASA, direct the CBN to release the amount to any of the five banks for disbursement.
“We have received the approval of the President to disburse the funds. It is now left for the key players to actualize the approval by the President.”
The minister 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 disbursement of the funds.
Sambo said the maritime sector would be a major income earner for the country if properly managed, adding that it was fulfilling for him to lead the historic process of disbursing the Cabotage Funds.
Section 44 part VIII of the Cabotage Act 2003 provides for the establishment of the Cabotage Vessel Financing Fund (CVFF) and a 2% deduction on cabotage-protected trade earnings goes into the savings for the development of indigenous tonnage (ships) in Nigeria.
The bankers and other critical stakeholders had hours of closed-door deliberation after the minister’s remark, to chart out a clear course for the final disbursements in the coming days.
