CVFF Disbursement: Ex- DG NIMASA Calls For Establishment Of VLFC

 A former Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) Barrister Temisan Omatseye has called for the establishment of a Vessels Leasing and Financing Company (VLFC) to aid the disbursement of the controversial Cabotage Vessels Financing Fund (CVFF).

Omatseye said this in an interview with Shipping Position Daily in Lagos on Tuesday.

Recall that earlier this year, it was reported that the planned disbursement of the CVFF may not be possible any time soon following fears of the actual value in the fund despite the announcement by the Minister of Transportation, Rotimi Amaechi, that the fund will be disbursed.

Reacting to this, Omatseye, told our correspondent that he has been proposing to the government to establish the company which will be saddled with the responsibility of procuring the vessels and managing the vessels.

“So, I have been proposing to the government that the way it could move forward in this fund is basically to set up a Vessels Leasing and Financing Company, use that money as seed money which can build up to the maritime bank or whatever they want to do”

“The lease company can go ahead and acquire the assets and provide it to them, so it becomes a lease and you will be paying and any time you don’t pay the bank can take it off and give to somebody else.

 So that is what I feel should be done and in that way the fear of giving money to somebody who will not buy the vessels will be taken away, because the leasing company will buy the vessels and hand it over to you, they can dictate who will manage the vessel and if you are not performing they can take the vessel away from you and they can buy brand new vessels” he said.