Minister of Transportation Mu’azu Sambo has called on Primary Lending Institutions (PLIs) and other stakeholders to accelerate the disbursement of the Cabotage Vessel Financing Fund (CVFF). The appeal was made in a statement released by Henshaw Ogubike, the ministry’s Director of Press and Public Relations, during a meeting with heads of the PLIs—including the managing directors of Polaris Bank, UBA, Union Bank, Zenith Bank, and Jaiz Bank—alongside the Director General of the Nigeria Maritime Administration Agency and other interested parties.
Sambo reiterated that President Major General Muhammadu Buhari (retd.) had approved the immediate release of CVFF funds through five designated PLIs: Polaris, Zenith, Union, Jaiz, and UBA banks. The CVFF, a federal intervention fund, is intended to develop indigenous shipping capacity in Nigeria by supporting the maintenance of existing vessels and the acquisition of new ones. Additionally, the president confirmed that the two‑percent charge constituting the Cabotage Fund will continue to accrue to the Central Bank of Nigeria’s Treasury Single Account. Whenever this account reaches $50 million, the Minister of Transportation, on the recommendation of NIMASA, will direct the CBN to release the amount to any of the five banks for disbursement.
The minister noted that it has taken 17 years to obtain presidential approval for the fund’s release and urged key stakeholders to expedite the necessary procedures to ensure swift disbursement. “We have received the approval of the president to disburse the funds. It is now left for the key players to actualise the approval by the president,” he said.
Sambo emphasized that a well‑managed maritime sector could become a major source of income for the country and expressed personal satisfaction in leading the historic disbursement of the Cabotage Funds. Section 44, Part VIII of the Cabotage Act 2003 provides for the establishment of the CVFF and mandates a two‑percent deduction from cabotage‑protected trade earnings to fund the development of indigenous tonnage in Nigeria.
Following the minister’s remarks, bankers and other critical stakeholders engaged in closed‑door deliberations for several hours to chart a clear course for the final disbursements, which are expected in the coming days.
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