CVFF: Move towards Disbursement Gaining Grounds

CVFF: Move towards Disbursement Gaining Grounds

By Kathy Kyari 
The Management of the Nigerian Maritime Administration and Safety Agency, NIMASA, and the executives of the five primary lending institutions (PLI) approved for the disbursement of the Cabotage Vessel Finance Fund (CVFF) met this afternoon in Lagos, and advancement toward the disbursement of the CVFF is gaining ground daily.

Jaiz Bank, Polaris Bank, Union Bank, Zenith Bank, and UBA are the five PLI.

The Director-General Dr. Bashir Jamoh addressed the CEOs to the meeting, which he presided over in the boardroom of NIMASA, and stated that its main goals were to interact with them, inform them on the specifics of the Cabotage Act, and develop methods for the payment.

In order to avoid the mistakes made by the precursor of the CVFF, the Ship Acquisition and Ship Building Fund, SASBF, Jamoh highlighted that their engagement was to draw on their financial and lending experiences.

According to the NIMASA boss, the SASBF failed because it was run by the Ministry of Transportation and the former National Maritime Authority without the necessary expertise in loan disbursement and recovery. He said that up to this day, more than 8 shipowners have not repaid the SASBF loan.

He stated that a significant conference involving NIMASA, shipowners, and other stakeholders will cover the decisions made regarding the means of distribution between the banks and NIMASA. He asserts that the conclusion of the big meeting will serve as the foundation for the federal government's final decisions.

Jamoh explained to the bankers that NIMASA will bear 50% of the CVFF funds, the banks will bear 35%, and the shipowners will bear the remaining balance.

The PLIs that embraced the initiative praised NIMASA and the federal government and said they were ready to participate in the payment but asked for extra time—at least one week—to complete their own assignments and submit a report to the NIMASA management.

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