FG directs banks to set modalities for Cabotage Fund disbursement
Economy Transportation

FG directs banks to set modalities for Cabotage Fund disbursement

The Federal Government has given five primary lenders in the disbursement of the $350 million Caboge Fund  72 hours to draw up modalities for the fund.

Director-general of the Nigerian Maritime Administration and Safety Agency (NIMASA), Bashir Jamoh, gave the directive at a meeting with the banks in Lagos on Tuesday.

The NewsZenith reports that the banks are Jaiz, Polaris, UBA, Union Bank and Zenith.

President Muhammadu Buhari gave approval for the disbursement of the fund on Dec. 11, 2022.

Jamoh said the primary lenders could not disburse without stakeholders’ engagement.

According to him, the modalities should include interest rate, tenure, collateral and requirements needed to access the fund.,

He added that this is in line with global standards as the funds would be in foreign currencies.

“Therefore, the stakeholders’ engagement starts today.

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“We are on track, we have started with the banks who are Primary Lenders (PLs) and all five of them are here today.

“We have listened to them and they listened to us.

“And from all indications, they are ready for us as well,” the NIMASA boss said.

He asked the banks to come up with a collective decision and standard template for the disbursement of the fund.

Jamoh said the banks should notify ship owners once they conclude plans on the guidelines.

He said the guidelines must adhere to the best practices.

The Fund is to assist Nigerian ship owners to buy new ships or refurbish existing ones.

The government introduced it in 2004 and contributed two per cent deductions from the value of every contract awarded under the Cabotage regime.

The Cabotage Fund is under the management of the NIMASA while the fund is being warehoused at the Central Bank of Nigeria.




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