Ship-owners Engage NIMASA On Disbursement Of Cabotage Fund

Members of Shipowners Association of Nigeria (SOAN) have written to the Nigerian Maritime Administration and Safety Agency (NIMASA) on need to disburse the Cabotage Vessel Financing Fund (CVFF).
President of the association, Engr. Greg Ogbeifun told newsmen at the pre-election press briefing of the association in Lagos, weekend that the association was determined to ensure effectively utilization of the fund.
He said his members have contributed immensely to the fund hence have need to write to NIMASA on need to disburse the fund.
He said, “We will engage the authority own the disbursement of the fund. For instance, Starz group contributed, $1.25million, Cand I Leasing contributed $1.8million, Slok contributed over $1million while Seabulk contributed $1.3million and on like that.
CVFF is a product of the Coastal and Inland Shipping Act of 2003 and provides for the disbursement of loans to indigenous operators in the shipping industry to grow their fleet.
The fund is derived from the two per cent surcharge on all Cabotage contracts which are deducted and warehoused by NIMASA and while NIMASA contributes 35per cent, the banks who are the Primary Lending Institutions (PLIs) contribute 50 per centwhile the applicant makes an equity contribution of 15per cent