The Minister of Transportation, Rotimi Amaechi, on Thursday said a committee had been set up to come up with the guidelines for disbursing the Cabotage Vessel Financing Funds.
Amaechi made the disclosure at a meeting of relevant cabotage stakeholders on CVFF, in Lagos.
According to him, the fund was initially applied to building a university, building faculty of maritime in different universities, but now it will be applied to shipowners directly.
He said the committee would be chaired by the Director-General of the Nigerian Maritime Administration and Safety Agency, Dr. Dakuku Peterside.
Amaechi said: “What we have agreed today is to set up a committee that will come forward with the proposed guideline, which will be presented to the National Assembly.
“It is the committee that will determine if it will be a single digit or not.”
Amaechi said as part of efforts to mitigate the risks involved in the disbursement, financial institutions would be involved and the fiscal risk borne by them.
He said: “The banks will be involved in developing the criteria for the disbursement of the fund, so the risk will be borne by the institutions.”
The minister also said the committee would determine the percentage interest to be inserted in the procurement of CVFF.
Peterside said the meeting was to discuss the CVFF disbursement, which the minister had got approval for.
He said after extensive discussions by stakeholders, it was decided that the committee should come up with a draft guideline.