Government, shipowners move against obstacles to disbursing cabotage fund

The Executive Director, Maritime Labour and Cabotage Services, Nigerian Maritime Administration and Safety Agency, (NIMASA), Engr. Victor Ochei (left); Director-General NIMASA, Dr. Bashir Jamoh; Chairman, CabotageVessel Financing Fund (CVFF) Committee of the Nigerian Indigenous Shipowners Association (NISA), Dr. Edward Sohwo and Executive Director Operations NIMASA, Shehu Ahmed, during a visit by the NISA CVFF Steering Committee to the NIMASA headquarters in Lagos.

Arrangements are in top gear by major stakeholders in the maritime industry to actualise the disbursement of the much-delayed Cabotage Vessel Financing Fund (CVFF) before President Muhammadu Buhari vacates office on May 29, 2023.

The Guardian gathered that the fund has accumulated to about $350m and N16b after about 20 years of remittance. Buhari had recently approved the disbursement of the fund.

To ensure a smooth disbursement, the Minister of Transportation, Alhaji Muazu Sambo; the Director General of Nigerian Maritime Administration and Safety Agency, (NIMASA), Bashir Jamoh; members of the Nigerian Indigenous Shipowners Association (NISA) and Ship Owners Association of Nigeria (SOAN), among others it was learnt are currently putting heads together to ensure fair disbursement of the fund.

Some of the major factors highlighted for fair disbursement of the fund are; the establishment of the CVFF disbursement committee by the government; the need for an audit of the fund; issues of harmonised guidelines for disbursement; disunity among shipowners; and the issues of equity contribution, among others.

To ensure a transparent process, Jamoh has been constantly engaging stakeholders to ensure effective communication for seamless disbursement of the fund.

Jamoh, during the meeting with NISA last week reassured Indigenous Shipowners of the commitment of the agency under the supervision of the Federal Ministry of Transportation, to implement the presidential approval for the disbursement of the CVFF.

At the meeting, he revealed major conditions for the disbursement of the $350m and N16b Cabotage Fund to indigenous ship owners.

The ship owners at a different meeting led by the Chairman, Board of Trustees of the association, Chief Isaac Jolapomo, noted that the association has sent a delegation to NIMASA to seek clarity following the controversies surrounding the disbursement of the CVFF.

While giving feedback on the meeting between the committee and NIMASA, the Chairman of the CVFF Committee of NISA, Dr Edward Sowho, explained that Jamoh affirmed that the accruals of the CVFF are currently in both United States dollar and naira.

Giving details, Jamoh reportedly informed that $350m is currently in the dollar account though he cannot give the exact figure of the accruals in the naira account, as it is yet to be reconciled. He also noted that the $350m has been allocated to five financial institutions.

According to Sowho, the NIMASA boss stressed that the Federal Government has not set up any committee for the disbursement, though he promised that the disbursement would be done before May 29, 2023.

Sowho added: “The NIMASA DG asked that before the CVFF will be disbursed, the division among indigenous ship owners must end. That NISA and SOAN must collapse into a body of indigenous ship owners.

“Secondly, the NIMASA DG asked that NISA must change the name of its CVFF Committee because the Federal Ministry of Transportation is about to set up a committee with the same name. The NIMASA DG told us that the Federal Ministry of Transportation couldn’t have a committee named CVFF Committee while NISA also has a committee with the same name.

“Thirdly, the NIMASA DG asked us to accept the disbursement of the amount in the CVFF. The NIMASA DG said that NISA cannot fault the amount in the CVFF and expect it to be disbursed,” he concluded.