The Federal Government has shortlisted a total of five commercial banks operating in the country to act as Primary Lending Institutions PLIs, for the disbursement of the N261billion comprising N16billion and $350million that has accrued into Cabotage Vessel Financing Fund CVFF accounts. The five banks include Union, Zenith, Polaris, UBA and Jaiz Banks.

This is sequel to approval by President Muhammadu Buhari for the immediate disbursement of the 29-year old fund derived from two per cent deductions from the total value of contract awarded under the Coastal and Inland Shipping Cabotage Act 2003, which was part of efforts to build indigenous fleet.

Minister of Transport, Engr. Mu’azu Sambo, who confirmed this during a media briefing at weekend, also confirmed that the president has approved a list of the five commercial banks comprising Union, Zenith, Polaris, UBA and Jaiz Banks, which will act as PLIs for the disbursement of the funds to indigenous shipping companies.

Meanwhile, Director General of the Nigerian Maritime Administration and Safety Agency, NIMASA, which is the custodian of the fund, Dr Bashir Jamoh, has also said that the funds available for disbursement was slightly above N16 billion and $350 million.

“What we have collected so far is in two folds made up of naira and dollar components under the CVFF in naira component is around N‎16billion while contributions in the dollar component hovers around $350million”, Jamoh said.

The Minister noted that the Ministry of Transport has commenced liaison with the Minister of Finance and the Governor of the Central Bank of Nigeria CBN, for the disbursement.

The Minister said: “President Muhammadu Buhari has approved our request for the disbursement of the CVFF. It is my belief that finally we are going to break the 17-year-old jinx that has hindered the expansion of the maritime industry.

“We have made a case that the funds belong to you, the ship owners. Mr. President is a man who respects the law and is on the same page with us to proceed with immediate effect. We will be liaising with the Minister of Finance, Budget and National Planning and Governor of the CBN to work immediately on the approval.

We have pledged to the president that they will continue to allow the funds to go into the Treasury Single Account, TSA; however, whenever the money hits the threshold of $50million, the CBN upon recommendation from NIMASA and the Federal Ministry of Transport, would be expected to transfer the funds to the Primary Lending Institutions.”

The CVFF was established by the Nigerian Coastal and Inland Shipping (Cabotage) Act of 2003, to empower indigenous ship owners to take control of the nation’s coastal and inland shipping business, otherwise known as Cabotage trade.

Under the disbursement guidelines, applicants to the fund are expected to make an equity contribution of 15 per cent while NIMASA would make an equity contribution of 35 per cent eve the PLI provides the balance 50 per cent of the value of the tanker being acquired.