The Minister of Transportation, Muazu Sambo, has explained the current delay in the disbursement of the Cabotage Vessel Financing Fund (CVFF), saying it was due to the inquiry by the House of Representatives.
LEADERSHIP reports that the House of Representatives had penultimate week asked the Nigerian Maritime Administration and Safety Agency (NIMASA) to halt its plan to disburse the sum of $700m Cabotage Vessel Finance Fund to indigenous shipowners.
The members resolved to direct the Committee on Local Content to commence investigations of the Cabotage Vessel Finance Fund to determine all monies that have accrued to the fund since its establishment in the year 2003 and report to the House within 14 days.
However, speaking on the development at the investiture ceremony and inauguration of the 7th President of the Nigerian Chamber of Shipping (NCS) in Lagos, on Friday, Sambo said the position of the lawmakers is in line with the standard practice of inquiry and due diligence.
He, however, assured that there will be no going back on the disbursement of the fund, saying the ministry has been meeting with members of the house to harmonise perspectives that will lead to the disbursement of the fund.
He said, “Against all odds, we got the Presidential approval to disburse the Cabotage Vessel Financing Fund. All machinery was in motion to disburse it in the first week of April, through the selected financial institutions in line with the Cabotage Act and approved Regulations but the disbursement of the fund is delayed presently by an inquiry from the House of Representatives.
“You will agree with me that their stand is a welcome development and it is in line with the standard practice of inquiry and due diligence. My team has been meeting with the members of the House to harmonise perspectives which will lead to the disbursement of the funds in the coming days. No going back.”
Sambo used the occasion to speak on some of his achievements in office, saying, “A few months ago, upon assuming office as the Minister of Transportation, I decided to go after the proverbial low-hanging fruits that will positively impact the maritime landscape in a short time.
My team and I took a thorough assessment of projects in all parastatals under the Ministry and we made a list of deliverables within the time frame we have, and we put in the will and resources to achieve them.
“It may interest you to know that, without knowing the proponents behind the Badagry Seaport, reading through the memorandum and being convinced that it will further boost shipping activities in Nigeria, we presented it to the Federal Executive Council at our maiden appearance and got immediate approval.
“We fast-tracked the realisation of bringing shipping closer to the hinterlands of Nigeria through the established policy of Inland Dry Ports (IDPs). To this end, the inland dry ports of Dala in Kano, Kano state and Funtua in Katsina state were declared as ports of origin and final destination, following the completion of all necessary infrastructure at the two locations.
“Within this short time as well, the Lekki Deep Seaport was commissioned by the President of the Federal Republic of Nigeria, Muhammadu Buhari, Just two days ago, the federal government approved the Development of the Ilaje Deep seaport in Ondo State, Snake Island in Lagos and the Burutu Port in Delta State. These ports are to be executed through Public -Private Partnership (PPP) arrangements and will enhance the activities of this chamber in the long run.”
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