FG approves 5 banks for disbursement of Cabotage Fund

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Lagos, Dec.11, 2022 – The federal Government has approved five banks as the primary lending institutions for the disbursement of Cabotage Fund.

The banks are Union Bank, Zenith Bank, Polaris Bank, UBA and Jaiz Bank.

A statement issued by the Nigerian Maritime Administration and Safety Agency (NIMASA) in Lagos today said that Mallam Mu’azu Jaji Sambo, the Minister of Transportation,  made the announcement in Lagos at a joint press conference with the NIMASA boss, Dr. Bashir Jamoh, last weekend following the approval of the banks by the government.

sambo had earlier announced that President Mohammadu Buhari had given approval for the disbursement of the $350 million Cabotge Fund.

Dr. Bashir Jamoh, the Director General of NIMASA, said that the funds available for disbursement were slightly over ₦16 billion and $350 million.

“What we have collected so far is in two folds made up of naira and dollar components.

“So far, the Funds available under the CVFF in naira component is around Sixteen Billion naira (₦‎16,000,000,000:00), while contributions in Dollar component hovers around the Three Hundred and Fifty Million Dollar mark ($350,000,000:00).

The Cabotage Vessel Financing Fund (CVFF) was established with the Nigerian Coastal and Inland Shipping (Cabotage) Act of 2003 to empower indigenous ship owners to take control of the nation’s coastal and inland shipping business, otherwise known as Cabotage trade.

Applicants for the Fund will make an equity contribution of 15 per cent, while NIMASA would make an equity contribution of 35 per cent and 50 per cent would be provided by the banks. GBN)

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