Indigenous shipowners have told the Nigerian Tribune that they have lost hope on the disbursement of the $350 million Coastal Vessel Financing Fund (CVFF) in the short term.
The CVFF, generated from a 2 per cent surcharge on the contract sum carried out by vessels engaged in the coastal trade, was established by the Coastal and Inland Shipping Act 2003 in order to develop vessel procurement capacity indigenous vessels and provide financial assistance to indigenous/national vessels. coastal transport operators.
Speaking to the Nigerian Tribune exclusively in Lagos, the National President of the Nigerian Shipowners Association (NISA), Mr. Sola Adewunmi, revealed that many of the members of the association have lost hope in the disbursement of the fund.
According to the NISA Chairman, who is also CEO of Equatorial Energy Company, “Yes, we have had a series of meetings regarding the disbursement of the CVFF with officials from the Ministry of Marine and Blue Economy, but I can confirm to you that nothing has happened. get out of those meetings.
“The meetings have focused on how the money will be disbursed, the modalities that will be used. At one point, they brought in an international consultant to discuss with us how the money would be disbursed.
“It was part of the Ministry of Marine and Blue Economy's Key Performance Indicators that the money should be disbursed before the end of 2024. Yet here we are, at the end of the year, and nothing has happened.
“We at NISA are totally disappointed with the government for the disbursement of the CVFF. We are not at all impressed with everything that has been done. We have indigenous shipowners who cannot buy boats. Today there is no local shipowner who is willing to borrow money at 37 percent just to buy a boat. Today there is no indigenous shipowner in Nigeria who is willing to take the risk of going to borrow money, given the time frame that will be assigned to such loan for repayment,” he said.
When asked if he believes the fund is still intact, the NISA national president stated: “Yes, people have been saying that the money is no longer there. That has been used for other purposes. But the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dayo Mobereola, has denied such claims and insisted that the money is still there. Therefore, we are still waiting and will continue to wait for them to make the disbursements.”
When asked if he sees any hope of a disbursement happening next year, Mr Sola Adewunmi explained: “The enthusiasm that was there before is no longer there. Indigenous shipowners have begun to look for other alternatives to survive. There is no hope that the fund will be disbursed next year. If it comes, that's fine, but my members are no longer waiting for it. Many have moved on with their lives by other means.”