$350m CVFF Fund Not A Grant, Commercial Banks Tell Indigenous Shipowners
Fred Omotara, Lagos
Commercial banks involved in the disbursement of the $350m Cabotage Vessel Financing Fund (CVFF) on Tuesday said that the fund is not a grant, and indigenous shipowners applying for the fund should know that they have to make repayment to avoid issues that could derail disbursement.
Speaking during a meeting with the Director General of NIMASA, Dr Bashir Jamoh, the Managing Director of Jaiz bank, Dr. Sirajo Salisu say that Indigenous Shipowners should be really to make repayment because the fund has to be repaid.
According to the MD of Jaiz bank, who spoke on behalf of the PLI’s, he assured of prompt action towards disbursing the funds, noting that interested shipowners should be ready to abide by the provisions of the Cabotage Act.
“We will try our best to partner with the beneficiaries or the proposed beneficiaries of these funds and I believe they are much aware that this is not a grant, this is money that is meant for a purpose and we will ensure that that purpose is achieved to the benefits of the country.” He said.
It is noteworthy that the Cabotage Act provides that NIMASA makes 50 per cent available, the PLIs are expected to support the project with 35 per cent, while intending shipowners would be required to make their contribution of 15 per cent of whatever amount of money is needed for the acquisition of a vessel.
The Management of the Nigerian Maritime Administration and Safety Agency NIMASA today met with members of the Executive Management of Jaiz Bank, United Bank of Africa (UBA), Union Bank, Zenith Bank and Polaris Bank which are the Federal Government approved Primary Lending Institutions (PLIs) for the disbursement of the Cabotage Vessel Financing Fund, CVFF.
The MD/CEO Jaiz Bank, Dr Sirajo Salisu, Executive Director UBA Nigeria North, Mrs. Emem Usoro, Managing Director Union Bank of Nigeria, Mr.Mudassir Amray and Change Risk Officer, Polaris Bank, Mr Temi Ariboloye were at the meeting. Also at the meeting were; Executive Directors, Maritime Labour and Cabotage Services of NIMASA, Engr. Victor Ochei, Executive Director, Operations, NIMASA, Mr. Shehu Ahmed and a maritime stakeholder, Hon. Chris Asoluka, among other Top Management staff of NIMASA