As the Federal Government gears up for the disbursement of the long-delayed Cabotage Vessel Financing Fund (CVFF) by August, former acting President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, has made a case for freight forwarders to be included as beneficiaries of the fund.
In a chat with Shipping Position Daily, Farinto declared that freight forwarders have made indirect but undeniable contributions to the CVFF and therefore deserve to benefit from it, just as indigenous ship owners do.
“The CVFF is not for indigenous shipowners alone,” Farinto asserted. “Freight forwarders too can access it. The only reason it seems we haven’t is because no freight forwarder has applied. But that doesn’t mean we haven’t contributed. The 2% levy that formed the CVFF was drawn from transactions involving cargoes—and without cargo, there’s no shipping. So indirectly, we’ve been part of the ecosystem sustaining that fund.”
Farinto’s advocacy comes at a critical time when the maritime sector is awaiting the long-promised release of the CVFF, a fund meant to promote indigenous participation in the shipping industry by financing vessel acquisition. While the Federal Ministry of Marine and Blue Economy has repeatedly promised to disburse the fund, which is currently valued at over $350.
He commended the recent move by the Minister of Marine and Blue Economy, Adegboyega Oyetola, to ensure disbursement of the CVFF before August, adding that if that promise is kept, “I will clap for them (government). I will be delighted.”
Farinto however expressed regret that many of the original indigenous shipowners for whom the fund was conceived have gone into extinction due to the delay in disbursement. “The people that may eventually benefit from this fund will be the new generation, not the old ones.
He threw his support behind the loan conditions, especially the two-year moratorium and eight-year re-payment structure, describing them as favourable and practical. “It’s a vessel you are investing in, not a car. If you manage your business well, by the third year you should be able to repay. The structure is sound,” he noted.
Farinto also endorsed the inclusion of inland waterway operators and boat owners in the CVFF scheme. He argued that such inclusion, recently approved by the ministry, would help modernize Nigeria’s inland water transport system, which he described as dangerously outdated. “Many of these boats were manufactured during the medieval period. They use torchlights at night, and their life jackets expired over a decade ago. If they can access CVFF, they will upgrade their boats, and that will bring value and safety to the sector.”
The ANLCA chieftain also used the opportunity to call on the federal government to reduce or completely cancel the import levy on used vehicles.
He stressed that the high cost of clearing vehicles, coupled with multiple charges, is hurting ordinary Nigerians, especially young people who rely on vehicles for ride-hailing services to survive. “Even banks and lawmakers now go for Nigerian-used vehicles, because foreign-used vehicles are out of reach. We must ease the pressure by cutting levies and duties”, he argued.
Reflecting on the performance of President Bola Tinubu’s administration, Farinto admitted that the beginning was tough, but maintained that the President is laying the foundation for a strong institutional framework. “I misread him at first,” he confessed. “But now, I see that he is building institutions. We’ve been living on borrowed robes. Unlike in the past when dollars were shared for pilgrimages and importers couldn’t access forex, he has taken steps to stabilize the economy. It’s just unfortunate that some of the agencies implementing his policies create bottlenecks.”
Farinto suggested that Tinubu, after clocking two years in office, should consider overhauling his cabinet. “He should change all his ministers and bring in new hands to refocus his vision. Look at the Regional Maritime Bank – a policy that was hanging for 16 years – now it has $500 million for take-off. That bank can transform maritime infrastructure. It’s another form of CVFF, and it can solve many problems”.
While acknowledging that some Nigerians remain pessimistic, he urged citizens to give the president’s policies a chance before passing judgment. “We must not always be quick to condemn. Let the bank start, let the CVFF be disbursed, then we can evaluate.”
