Group Seeks Immediate Disbursement of Cabotage Fund

Ports Consultative Council (PCC) has charged Nigerian Maritime Administration and Safety Agency (NIMASA), nation’s maritime apex body, on speedy processing of disbursing the Cabotage Vessel Financing Fund (CVFF).

Chief Kunle Folarin, PCC’s chairman who made the call also highlighted the need for NIMASA be cautious with the funds disbursement.

Guideline on the disbarment of the fund was released in 2006 in pursuant to section 44, part VIII, Coastal and Inland Shipping (Cabotage) Act 2003 by the Federal Ministry of Transport, with a sole aim of increasing indigenous ship acquisition capacity. 

Folarin stated:  “For me, I cannot blame NIMASA for taking appropriate caution. You know what happened to the fund in the past. They were disbursed and nearly 80 per cent of them did not refund the money. So, this is supposed to be a revolving fund. It is supposed to be there for the future.

“I believe that NIMASA is trying to be taking caution but they cannot wait on forever. They should accelerate the processes but for taking caution and making sure that it goes to the right people, for the right uses and is monitored for execution, I think they have done the right thing.”

Speaking further Folarin said that  “What we have in Nigeria are obsolete. They are not in tune with the right situation all over the world. You are either building an industrial port or you are building a container-oriented port or a general cargo port.

“What we have is a mixed development in Nigeria. Is not that bad but then the infrastructure requirements of a mixed development port are huge. You got to do the roads; you have to build up security and also common user terminal has to develop.