17 years after, FG approves disbursement of $350m Cabotage fund

…. Approves Zenith, Polaris, others for disbursement

By Seun Ibiyemi

The Minister of Transportation, Eng Muazu Jaji Sambo has announced an approval for the disbursement of the Cabotage Vessel Financing Fund (CVFF) by President Muhammadu Buhari with immediate effect.

Sambo made the disclosure on Saturday at the flag off ceremony of the third phase of the Nigerian Seafarers Development Program (NSDP) held at the Naval dockyard in Lagos.
Sambo said “President Muhammadu Buhari has approved my request for the disbursement of the CVFF Fund.
Finally, we are breaking the 17-year old jinx.

He said, in this regards five primary lending institutions have been approved by Mr President to do the disbursement which Zenith bank, Polaris, United Bank of Africa (UBA) and Jaiz Bank.

“By the time we commencement to the beneficiaries, we have made a case that the fund belongs to the Nigerian shipowners.

“The president who is a respecter of the law therefore approved the disbursement of the fund with immediate effect.

“We shall approach the Minister of Finance and Budget Planning, as well as the Central Bank of Nigeria for the immediate disbursement of the fund.

“Sambo assured that even though the CVFF Fund which has hit over $350million is warehoused in the Treasury Single Account (TSA) of the Federal Government, it would be transferred to the approves primary lending institutions” he said

We have pledged to the president that they would continue to allow the funds to go into the treasury single account, however, whenever bthe money hits the threshold of 50 million dollars, the central bank of Nigeria upon recommendation from NIMASA and the federal ministry of transportation would inspect the transfer of the funds to the primary lending institutions.