The Minister of State for Transportation, Ademola Adegoroye, has assured Nigerian shipowners that the Federal Government will disburse money accrued under the Cabotage Vessel Financing Fund (CVFF) to them before the end of the current administration on May 29.
Speaking on Tuesday at the maiden Annual Lecture of the Institute of Maritime Studies at the University of Lagos, the Minister said government is targeting the acquisition of 28 vessels with a total of $700 million through the much-awaited CVFF.
He said, “The fisheries sub-sector is another area the government is working very hard to create jobs for our people and make water transport easier for Nigerians. Absolutely, that is what every responsible government would do but I can assure you that government will do everything to make it easier for shipowners to get more ships that can continue to grow our blue economy. It makes sense for every responsible government to do that, once it gets too expensive, it becomes a problem even for our economy.
“We are hoping and praying that we disburse the fund before the end of the current administration. We have a short time. We have barely eight weeks but I know they are working day and night to achieve this. It is possible; if not, government is a continuum. It is a government policy and nobody can do anything about it.”
Director General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Bashir Jamoh, who delivered the maiden lecture, said that the fund has a total of $350million contributed by ship owners while some banks selected as primary lending institutions and potential beneficiaries of the loan will contribute 35 per cent and 15 per cent respectively to acquire the targeted number of vessels.
Jamoh said the loan will be given at a single-digit interest rate.
“Besides using the blue economy to drive local shipping growth, the initiative will also awaken the nation’s dying marine insurance sub-sector. The blue economy initiative is everybody’s business as the benefits will also be for everybody. The ocean is a way of life, we need to exploit it sustainably for our economic benefits,” he said.