Saraki raises fresh hope on disbursement of $350m Cabotage fund

The Minister of State for Transportation, Senator Gbemisola Saraki, has assured that the Federal government has the political will to ensure that the controversial Cabotage Vessel Financing Fund (CVFF) is disbursed to deserving indigenous shipowners.

The CVFF established under the Cabotage and Inland Shipping (Cabotage) Act of 2003, is an accumulated fund from the contribution of two per cent of contract value by indigenous ship owners designed to promote the development of indigenous ship acquisition to enable local shipowners compete with their foreign counterparts.

However, 19 years after the Act was established, no ship owner has benefitted from the fund as it has remained inaccessible, thereby defeating its objectives.

Speaking at an interactive session with the media on Friday to round up her week- long visit to the Lagos ports, Saraki said it was disheartening that 19 years after the fund was set up, it is yet to be disbursed.

She noted that while the guidelines for disbursement were necessary, it did not have to take this long to be concluded by the relevant body responsible for the disbursement of the fund.

She, however, assured that the ministry under her watch will work with the National Assembly to expedite action of the disbursement process.

“I was part of those who passed the CVFF at the National Assembly years back. So, it is very disheartening to see that nothing has changed after so many years. But we will work with the National Assembly to ensure the money is disbursed. Just watch. It is absolutely imperative now more than ever, especially with the coming up of the African Continental Free Trade Area (AfCFTA).

“I have interacted with the indigenous shipowners and I know the number of ships we have a decade ago and how many they have now.

“It is a shame that today the indigenous shipowners can’t take advantage of the benefits that the Cabotage Act envisages. It is not about the Ministry of Finance but the Ministry of Transportation, NIMASA and the National Assembly. The National Assembly has to pass the guidelines but the guideline is not something that will take up to four years to pass. It is just about the political will and I can assure you that we have the right political will to ensure we start the disbursement of this fund,” she said.

Saraki also allayed fears that the fund, which she said has accrued to over $350million has been tampered with stating that the fund was still intact and approval would soon be secured for its disbursement.

She said, “We don’t know of any funds missing in the CVFF. The money is intact and it is currently about $350million.”