Where Is The N33.4b Cabotage Vessel Fund?

Two days ago, the House of Representatives beamed its searchlight on the state of Cabotage Vessel Financing Fund, a funding scheme established through Coastal and Inland Shipping (Cabotage) Act of 2003 and meant to provide financial leverage to indigenous ship owners in Nigeria. The Speaker of the House of Representatives, Aminu Tambuwal , at the  hearing, made a remarkable observation that calls for concern. He said the non-disbursement of the fund has heightened the fear  about  misappropriating the CVF funds to the detriment of its objective and  that the Nigerian Inland water ways has remained grossly a wasteland.

Over the years, the issue of non- disbursement of CVF fund has been grabbing news headline. If there is anything creating serious apprehension and generating hot debates among indigenous ship owners in Nigeria, it is the uncertainty and the secrecy that has trailed the disbursement of the fund. The fund was established 10 years ago for Nigerian citizens and shipping companies solely owned by Nigerians as beneficiaries. Due to the huge capital required in shipping business and the enormous constraints dogging the development of indigenous shipping companies, CVFF became imperative to boost the capacity of local shipping companies in acquiring the right type and sizes of vessels.

The fund is generated through two per cent surcharge of the contract sum performed by any vessel engaged in coastal trading and revenue generated under the act including tariff, fines, and fees for licenses and waivers.  Four commercial banks- Skye Bank, Sterling Bank, Diamond Bank and Fidelity Bank– had been earlier appointed to disburse the fund. But 10 years on, the fund remains trapped while indigenous ship owners are gasping for survival due to the dominance of their foreign counterparts who are more financially buoyant.

There is serious apprehension about how much fund has accrued to the CVFF.   Some analysts have condemned the secrecy surrounding the exact fund in the kitty, while others condemned the conflicting figures being bandied around.  Also, there are speculations that the money could have been diverted or misappropriated. The Minister of Transport, Idris Umar, at the public hearing held on Tuesday, however, said a total of N33.4 billion has accrued to the CVFF in the last 10 years.

Umar revealed that six indigenous firms have been selected to benefit from the fund. These are Starzs Investment Company, Aquashield Oil and Marine Services Limited, Nkrah Investemnt,   Zomay Marine and Logistics Limited, UTM Dredging Limited and Seabulk Offshore Operating Nigeria Limited. Though this step appears commendable, the  rationale behind the selection of the final six  firms has been questioned in some quarters. Significantly, it will be of greater impact to also extend the disbursement to others even if it is done in phases.

The question is, how soon will the Federal Government finally allay the apprehension about the CVVF by disbursing the fund? Many indigenous ship owners and concerned analysts are not convinced about  the promise by the government to disburse the fund to other beneficiaries in dire need of the fund after waiting for the past ten years.

As a matter of urgency, there is a need for the Minister of Transport and Nigerian Maritime Administration and Safety Agency, NIMASA, the agency vested with the statutory power to administer the fund, under the leadership of Patrick Akpobolokemi,  to speed up the disbursement of the fund.    It will be of interest for the Transport Minister to keep his promise because hope deferred makes the heart weary.