FG Sets Up Committee to Disburse $200m Cabotage Fund
The Minister of Transportation, Rotimi Ameachi, Thursday said that a Committee to disburse the Cabotage Vessel Financing Fund (CVFF) has been set up.
Amaechi told newsmen in Lagos that the Committee is to be headed by the Director General, Nigerian Maritime Administration and Safety Agency (NIMASA).
The CVFF is worth USD200million.
Speaking to newsmen after a closed door meeting with stakeholders, Amaechi said the Committee said the Committee to disburse the fund is to ensure that no shipowner fails to pay back after receiving the fund.
According to him, it was left for the banks disbursing the fund to ensure that all measures were put in place for the money to bepaid back.
“It is the committee that will determine whether it will be single digit or not. The essential element in it is that the responsibility will be transferred to the lending institutions so nobody will just walk away with the fund.
“It means that you must be held responsible for the funds that are accrued to you. That risk will be borne by the lending institution. The lending institution will give the guidelines necessary for borrowing the money so if you don’t have it, you can borrow the money.
“There must be rules by which anybody will qualify to borrow the money. After that you approach the lending institutions that in turn will put their own expectations in place because if you just allow people to go and take the money and walk away, we will not get it back.
“The idea is to enhance the development of the maritime industry and to do that, people must borrow and return for others to be able to borrow and that will grow the economy.”
Among other members of the Committee are former Director General of NIMASA, Temisan Omatseye, Maritime lawyer, Mr. Mike Igbokwe (SAN)Chairperson of the Shipowners Forum, Mrs Margret Orakwusi, former President, Nigerian Shipowners Association (NISA), Aminu Umar.
NIMASA DG, Dakuku Petreside, explained that the Committee was set up following recommendations from the stakeholders.
He said that how soon the fund will be disbursed will be based on the approval of the guidelines by the National Assembly.
He said the guidelines will be observed by the lending banks.
Amaechi had disclosed last year that his Ministry had received approval to disburse the fund
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