The Sea Empowerment and Research Center (SEREC) has said that the bureaucratic bottlenecks in the disbursement of the Cabotage Vessel Financing Fund , CVFF, needs to be streamlined while expediting the process to enable Nigerians to fully benefit from the fund, which is essential for supporting indigenous maritime operations.
In a statement ,Eugene Nweke . Head of Research at .SEREC, said that for the government to address the challenges of accessing the Fund, it must
streamline bureaucratic processes , simplify and accelerate the disbursement process, increase transparency and accountability.
He also said that the government must as a matter of urgency establish clear guidelines, transparent decision-making processes, and effective monitoring mechanisms.
The seasoned Customs broker explained that the Fund has accumulated approximately ₦16 billion naira and $350 million dollars. Established to promote indigenous ship acquisition capacity and provide credit facilities to local maritime operators, the CVFF’s disbursement is long overdue.
He further explained that the group is puzzled by the government’s delay in disbursing the CVFF adding that this delay may be attributed to competing priorities, limited resources and competing interests diverting attention away from the Fund.
He said:”For instance, the Nigerian Maritime Administration and Safety Agency (NIMASA) has reported that the CVFF has the potential to create over 10,000 jobs and generate ₦50 billion in revenue annually. However, the delay in disbursement has hindered the realization of these benefits.
“Recognize the importance of the CVFF in promoting Nigeria’s participation in the African Continental Free Trade Area (AfCFTA) and allocate sufficient resources to support its disbursement.
“We urge the government to establish a clear timeline for CVFF disbursement, provide transparent and regular updates on the disbursement process and allocate sufficient resources to support the Fund’s disbursement within the next 6 months.
“The continued delay in CVFF disbursement may be attributed to politicization. And to address this, the government must: implement Transparent and Accountable Processes, ensure decision-making processes are based on merit and technical considerations, establish effective oversight bodies and monitor the CVFF’s management and disbursement.
“Foster Open Communication and Collaboration – Ensure the CVFF serves its intended purpose.”
According to Nweke, the Fund if disbursed will increase indigenous participation and enable indigenous shippers to acquire modern vessels and compete with foreign shipping companies.
He stated that the Fund will bring about economic growth and development, create jobs, stimulate the economy and contribute to the country’s Gross Domestic Product, GDP.
“The Fund will also improve maritime infrastructure, developed ports, terminals, and ship repair facilities if and when it is properly disbursed without delay.
“The government must demonstrate its sincerity and commitment to developing the maritime industry, supporting indigenous shippers, and promoting economic growth and development. The benefits of CVFF disbursement far outweigh any contemplations or reasons given by NIMASA and the central government.” He added
