BY GODWIN OBI
Federal Government sudden stoppage of it’s planned effort to disburse the Cabortage Vessels Finance Fund (CVFF) even after it had given approval for it’s disbursement is not only a shock to shipping stakeholders but also, smarks an act of policy rascality on the part of government.
Shipping practitioners who had hitherto awaited the commencement of the long awaited disbursement of the CVFF had wondered how a responsible government would not support ship owners in their zest to acquire more vessels in the overriding interest of the shipping sector and Nigeria’s economy.
Indigenous maritime operators were happy when the Nigerian Maritime Administration and Safety Agency (NIMASA) confirmed it had received President Muhammadu Buhari’s approval to disburse the fund to those qualified for it in line with the Treasury Single Account (TSA) policy and the CVFF Guidelines 2006. NIMASA later confirmed shortlisting 11 companies to benefit from the fund.
But speaking recently in Lagos at an event on the removal of wrecks and derelicts from the Nigerian waters, the Minister of Transportation Rotimi Amaechi has said that the approval earlier given by President Buhari administration, authorizing the disbursement of the fund had been cancelled.
Amaechi was responding to a call on him by a ship owner to ensure that the fund is disbursed to enable indigenous maritime operators to acquire new vessels. Most Nigerian ship owners have old fashioned single-hull ships that will be phased out by NIMASA on December 31.
The minister said he will not fight for payment of the fund again as he had struggled for two years to get the approval. “But the ship owners started talking and the next thing I saw was a memo cancelling the approval. I won’t fight again to get another approval for payment of the cabotage fund to the ship owners,” he stated.
The CVFF is a two per cent contribution by indigenous ship owners to every contract executed and is meant for the development of cabotage fleet and local shipping capacity.
