Transport minister explains delay in disbursement of CVFF

The Minister of Transportation, Muazu Sambo has explained the current delay in the disbursement of the Cabotage Vessel Financing Fund (CVFF), saying it was due to the inquiry by the House of Representatives.

Recall that the House of Representatives had penultimate week asked the Nigerian Maritime Administration and Safety Agency (NIMASA) to halt its plan to disburse the sum of $700m Cabotage Vessel Finance Fund to indigenous shipowners.

The members resolved to direct the Committee on Local Content to “immediately commence investigations of the Cabotage Vessel Finance Fund to determine all monies that have accrued to the fund since its establishment in the year 2003 and report to the House within 14 days.”

Speaking on the development at the investiture ceremony and inauguration of the 7th President of the Nigerian Chamber of Shipping  (NCS) in Lagos on Friday,  Sambo said the position of the lawmakers is in line with the standard practice of inquiry and due diligence.

He, however, assured that there will be no going back on the disbursement of the fund.

He said the ministry has been meeting with members of the house to harmonise perspectives that will lead to the disbursement of the fund.

He said, “Against all odds, we got the Presidential approval to disburse the Cabotage Vessel Financing Fund. All machinery was in motion to disburse it in the first week of April, through the selected financial institutions in line with the Cabotage Act and approved Regulations but the disbursement of the fund is delayed presently by an inquiry from the House of Representatives.

“You will agree with me that their stand is a welcome development and it is in line with the standard practice of inquiry and due diligence. My team has been meeting with the members of the House to harmonize perspectives which will lead to the disbursement of the funds in the coming days. No going back.”

Sambo used the occasion to speak on some of his achievements in office, saying, “A few months ago, upon assuming office as the Minister of Transportation,  I decided to go after the proverbial low-hanging fruits that will positively impact the maritime landscape in a short time. My team and I took a thorough assessment of projects in all parastatals under the Ministry and we made a list of deliverables within the time frame we have, and we put in the will and resources to achieve them.

“It may interest you to know that, without knowing the proponents behind the Badagry Seaport, reading through the memorandum and being convinced that it will further boost shipping activities in Nigeria, we presented it to the Federal Executive Council at our maiden appearance and got immediate approval.

“We fast-tracked the realization of bringing shipping closer to the hinterlands of Nigeria through the established policy of Inland Dry Ports (IDPs). To this end, the inland dry ports of Dala in Kano, Kano state and Funtua in Katsina state were declared as ports of origin and final destination, following the completion of all necessary infrastructure at the two locations.

“Within this short time as well, the Lekki Deep Seaport was commissioned by the President of the Federal Republic of Nigeria, Muhammadu Buhari, GCFR. Just two days ago, the Federal Government approved the Development of the Ilaje Deep seaport in Ondo State, Snake Island in Lagos and the Burutu Port in Delta State. These ports are to be executed through Public -Private Partnership (PPP) arrangements and will enhance the activities of this chamber in the long run.”

Sambo added that the ministry also got approval for a cargo tracking scheme for all imports and exports across all borders-land and sea.

“The Electronic Cargo tracking note which is an official marine waiver certificate document required by several African countries to effectively control and manage import/export traffic has come to stay,” he said.

The Minister said the scheme will block revenue leakages and provide transparency in cargo invoicing.

He added that the implementation of the scheme will abet the problem of under-declaration, concealment and wrong classification of cargo.

Sambo assured the Nigerian Chamber of Shipping of his support just as he tasked the newly inaugurated NSC President, Aminu Umar to work together with his team and build on the achievements of his  predecessors to make the Nigerian Chamber of Shipping an enviable organization.

“The success of the team inaugurated today will be achieved through collaboration, among many other factors.

“I must say the humility, unassuming mien and endearing disposition displayed constantly by my brother, Alhaji Aminu Umar is worthy of commendation, and I know this organization will prosper under your watch. I know with the impeccable team you have, you will make an indelible mark.

“I want to pledge to the Nigerian Chamber of Shipping that it will always have my support and by extension the support of the Federal Ministry of Transportation. Though I  have a few days left as the Minister of Transportation,  I will always give my support in and out of government. I believe that history will be kind to us: that we came, we saw and gave our best, against all odds but with the kind and effective support of Mr President at all times,” he said.