By Stephen Ubanna
After several years of behind the scene maneuvering for the disbursement of the, North American country of the United States, US, multi-billion dollars Cabotage Vessels Finance Fund, CVFF, by former President Muhammadu Buhari’s Administration, hope, appears to have brightened for the final disbursement of the funds by President Bola Ahmed Tinubu’s Administration to deserving indigenous shipping Companies.
Recall that the CVFF, was established by former President Olusegun Obasanjo, under section 42 of the Coastal and Inland Shipping Cabotage Act, 2003,’’ to promote the development of indigenous ship acquisition capacity and to provide credit facilities to the local shipping operators but that was how far the Administration could go.
The CVFF, going by the Act, 2003, setting it up by the Obasanjo’s Administration, is funded by a mandatory two percent contribution from ship owners operating in Nigerian coastal and inland water ways as well as levies, fines, license fees and other amounts provided by the National Assembly that should be paid by the ship owns at any given time.
As a prelude to the disbursement of the multi-billion-dollar funds, the then President Buhari, in 2022, 19 years, after NIMASA, had started collecting the two percent levy on shipping companies, had approved five Money Deposit Bank, MDB, comprising of Union Bank, Zenith Bank, Polaris Bank, United Bank for Africa, UBA, popular, Pan African Bank and Jaiz Bank, to facilitate the disbursement of the funds.
Senator Gbemisola Saraki, a former minister of Transportation and his successor Engr. Mua’azu Jaji Sambo, were said to have made several attempts at different times to see to the disbursement of the CVFF, when it was only $350 million in the Treasury Single Account, TSA, in the then Godwin Emefiele, led Central Bank of Nigeria, CBN, now under the custody of Department of State Service, DSS. but failed to get the required Presidential nod to proceed with the disbursement of the funds, thus dampening the enthusiasm of the Local ship owners.
The unfulfilled promises by the Buhari’s Administrations to facilitate the disbursement of the over $350 million during his Administration, in NIMASA’s Account in CBN, may have led to speculations making the rounds that some amount from the funds had developed K-leg.
Dayo Mobereola, the incumbent, Director General, of NIMASA, who could not take it was said to have repeatedly assured Nigerians at every given opportunity that the CVFF account with the CBN, is safe and secure.
There is no gain saying the fact that the significant capital outlay required for vessel acquisition and other maritime infrastructure needed for efficient delivery of services may have made the indigenous ship owners not to take full advantage of the several business opportunities available in Nigeria and other maritime countries in the West and Central African sub-regions to invest in the industry, thus leaving the foreign shipping companies to dominate the sector.
President Tinubu may have read the handwriting on the wall that if this should continue, there is no way that the country’s indigenous ship owners can compete with the foreign shipping companies who have the resources to buy new ocean-going vessels to compete for cargoes to carry to the Nigerian market, West and central African sub-regional markets that the Nigerian government is set to step in to address the financial challenges of the indigenous ship owners.
Wale Edun, minister of Finance and Coordinating minister of the economy may have gladdened the heart of the indigenous ship owners when he stated recently of the commitment of President Tinubu’s Administration ‘’to facilitate the disbursement of the CVFF, which Mobereola, the NIMASA, Chief Executive Officer, CEO, had said had hit the over $360 million bracket in CBN , under the incumbent governor, of the bank, Olayemi Michael Cardoso.
Edward Osagie, an Assistant Director, and head of the agency’s Public Relations Department had said that the disbursement of the funds was the focus of discussions when Mobereola, the maritime regulatory agency helmsman led a delegation to meet the minister in his Abuja, Federal Capital Territory, FCT’s office.Given an insider information to their discussion at the high-profile meeting, the NIMASA, spokesperson, had said that that the minister had emphasized at every stage of their discussions that ‘’the CVFF disbursement remains a top priority of President Tinubu’s Government.
He had alluded to the minister’s claims that the President is enthusiastic in seeing to the disbursement of the 22-year-old funds as it is expected ‘’to have a positive ripple effect on the economy, drive growth, create employment opportunities and further strengthen Nigeria’s position as a maritime hub in the African Continent’’.
Adegboyega Oyetola, a former governor of Osun state and now minister of marine and blue economy may have known that there is nothing he can do for now to facilitate the disbursement of the CVFF, that he was said to have directed the NIMASA boss, to engage the minister of Finance ‘’to resolve the technicalities and establish the modalities to fast-track the disbursement of the funds to beneficiaries’’.
The NIMASA boss may have used the opportunity provided by the visit to the minister of Finance and Coordinating minister of the economy to draw his attention to President Tinubu’s Administration efforts ‘’to unlocking the nation’s maritime sector’s full potentials’’.
He was said to have reassured the minister that funds are safe as it has been domiciled with the CBN, since the implementation of the TSA, during the Obasanjo’s Administration.
Perhaps, to facilitate the disbursement of the funds this time around, with failing, the minister of Finance was said to have approved the inclusion of a representative from the ministry in the NIMASA’s in-house Committee on the funds, under the supervision of the supervisory ministry of marine and blue economy.
He was said to have stressed the importance of regular updates and transparency in the utilization of the fund, ensuring that contributors and key stakeholders benefit efficiently while positing Nigeria’s maritime industry for sustainable growth.
