Cabotage Vessels Financing Funds: Agents Cautions Minister On Disbursement

The Ministry of Marine and Blue Economy must exercise caution in disbursing the Cabotage Vessels Financing Funds to ship owners.

The African Association of Professional Freight Forwarders and Logistics (APFLON) which gave the caution added that the Minister Adegboyega Oyetola, should set up modality for a verification of ship-owners before disbursing to them.

National President of APFLON, Mr Frank Ogunojemite, who spoke for the association via a statement on Wednesday, lauded the minister for the initiative, urging him however to trade with caution in disbursing this fund to the beneficiaries.

“We, the above-named association, do hereby write to appreciate you for the novel policies and reforms that you have brought to bear on the marine and blue economy sector of the economy since you assumed office.

“The recent approval that you granted to NIMASA to commence the process of disbursing the long-awaited CVFF, which had defied every administration for more than a decade now, is a testament to your resolve to leave the industry better empowered and repositioned than you met it.

“However, much as we applaud you for this giant step, we equally call for caution in disbursing this fund to the beneficiaries.

“This is to avoid the experience of the past where funds such as this were mismanaged and the aim for which the funds were disbursed defeated,” he stressed.

According to him, “While we are not against the disbursement of this fund, we however, call for the verification of the ship owners who are to benefit from this fund to ensure that they are in business and viable enough to be entrusted with such an amount of money as it’s obvious some of them are out of business and some of them moribund,” APFLON boss said.

Ogunojemite said it is a way of guarding against funds diversion, while also advocating the setting up of a committee to verify the credit ratings of the ship owners

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“We must take every necessary step this time around to get it right so that Nigeria can build enough capacity in the area of shipbuilding and ownership and, in turn, gainfully engage our teeming maritime students and graduates in profitable ventures as well as reduce the freight cost for Nigerian-bound cargo.

“We also advise that even when this fund is finally disbursed, it should be closely monitored by the ministry to ensure that the fund is channeled to the aim for which it was disbursed in the first place, otherwise the rationale behind its disbursement will not be achieved,” Ogunojemite stated.

Caution in disbursing the Cabotage Vessels Financing Funds, he said, is of essence given that some of the ship owners may have taken loans even from financial institutions abroad.

Monies disbursed in respect of the facility, without first guaranteeing that they are not servicing any loan anywhere, may led to the money being wrongly invested, the association stated.