Sambo: CVFF Requires a Special Purpose Vehicle to Gain Traction
The Minister for Transportation, Mr. Mu’azu Jaji Sambo, has said that the Cabotage Vessel Financing Fund (CVFF) would require a Special Purpose Vehicle to gain the needed traction it is hoped to generate for Nigerian maritime stakeholders.
While fielding questions from journalists regarding the delay in disbursement of the fund, Sambo stated that with the resources currently in the CVFF coffers, not much would be achieved in terms of vessel acquisition aimed at establishing the long sort after national fleet.
Speaking on the financial straits, which the Ministry has to deal with to ensure its disbursement, the Minister noted that for robust impact, a special purpose vehicle is required to provide funding which would generate the needed impact that the indigenous stakeholders crave.
He said: “The law is very clear how the funds should be disbursed. Luckily for me since I came on board, I have had this conversation with the DG NIMASA. We have only about $350million and that would not be enough to do everything we want to do. So, we must think out of the box.
“How can we get this fund tripled or quadrupled so that if we have an entity, through some financial arrangements that would be able to say, look, for every dollar you pay, we are going to provide four dollars to your stakeholders. That is the kind of thing we are working on right now. So, let’s say for example if we have about $350million, we want to say this entity has $1.5billion,” he said.
With the resources generated, Sambo said, the Ministry can then look into the kinds of vessels to be invested in thereby stimulating active indigenous participation in shipping.
“Then, we can look at different classification of vessels. From fishing trawlers to cargo carriers. If we have Nigerians own these vessels, we are in an indirect way establishing a national fleet. What is a national fleet? Being owned by Nigerians and flagged Nigerian flag. We are working on this day and night. I am passionate about it. We will disburse this fund and Nigerians would be happy with us. If it is the only thing I achieve, I would say God, I thank you.”