This came after Rep. Henry Nwawuba (PDP-Imo) won approval for a resolution of urgent public interest at a plenary session in Abuja.

TechEconomy recalls President Muhammadu Buhari authorized the transfer of $350 million and N16 billion from the Cabotage Vessel Financing Fund (CVFF).

However, in support of the development of domestic ship purchasing capability, the lawmaker emphasized in his motion that the Coastal and Inland Shipping (Cabotage) Act, 2003 established the Cabotage vessel finance fund.

The anticipated distribution of 700 million dollars in cabotage vessel finance funds to Nigerians and businesses by the Nigerian Maritime Administration and Safety Agency (NIMASA) has been put on hold by the House of Representatives.

This came after Rep. Henry Nwawuba (PDP-Imo) won approval for a resolution of urgent public interest at a plenary session in Abuja.

In support of the development of domestic ship purchasing capability, he emphasized in his motion that the Coastal and Inland Shipping (Cabotage) Act, 2003 established the Cabotage vessel finance fund.

The House however directed the Committee on Local Content to engage an external auditor to audit all contracts entered into in the cabotage regime and report same to the House within seven days.

Additionally, the committee is required to start looking into the Cabotage Vessel Finance Fund right away to determine all funds that have accrued since the fund was established in 2003 and report back to the House within 14 days.

A report on the state of the Cabotage Vessel Finance Fund and how the money has been used over the last 20 years was requested by lawmakers from the Minister of State for Transport and the Director-General of NIMASA.

TechEconomy recalls President Muhammadu Buhari authorized the transfer of $350 million and N16 billion from the Cabotage Vessel Financing Fund (CVFF).

Section 44 part VIII of the Cabotage Act 2003 provides for establishing the Cabotage Vessel Financing Fund (CVFF) and a 2 percent deduction on cabotage-protected trade earnings goes into the savings for the development of indigenous tonnage (ships) in Nigeria.

The Minister said in a statement signed by the Ministry’s Director of Press and Public Relations, Henshaw Ogubike, on Thursday, President Buhari has directed that the 2% charge that makes up the CVFF continue to accrue to the CBN Treasury Single Account (TSA) and that when the account reaches $50 million, the Minister of Transportation should direct the apex bank to release the amount to any of the five commercial banks for disbursement on the recommendation of NIMASA.

President Buhari had authorized the immediate disbursement of the Cabotage Vessel Financing Fund (CVFF) through five primary lending institutions, namely Polaris, Zenith, Union, Jaiz, and UBA banks.

This was after a meeting with representatives and heads of the five primary lending institutions, including the MDs and CEOs of Polaris Bank, UBA, Union Bank, Zenith Bank, Jaiz Bank, and the DG of, Zenith Bank, the DG of NIMASA, and the MD of Shipping at NNPC, among other stakeholders.

He did, however, call for a concerted effort by key stakeholders to make the Cabotage Vessel Financing Fund (CVFF) disbursement a reality.

The Minister noted that it had taken 18 years to obtain presidential approval for the disbursement and charged the key stakeholders with expediting action on the necessary details to enable the funds to be disbursed quickly.

“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,” he said.

Sambo said the maritime sector would be a significant 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.