Article Summary
- Reps concerned that since the establishment of the Cabotage Vessel Finance Fund, there have been no reliable data as to the total amount that has so far accrued to the Fund.
- They added there was no certainty as to the actual worth of the fund at the moment,
- Minister of State for Transport and NIMASA Director-General are also expected to report to the House Committee on local content on the state of the Cabotage Vessel Finance Fund.
The Nigerian House of Representatives recently ordered the suspension of disbursement for the Cabotage Vessel Financing Fund.
The Fund which is disbursed by Nigerian Maritime Administration and Safety Agency (NIMASA) is expected to finance the purchase of vessels and equipment to provide billions of dollars’ worth of value to Nigeria’s Maritime economy.
The move to suspend disbursement came after the adoption of a motion of urgent public importance by Rep. Henry Nwawuba (PDP-Imo) during plenary in Abuja reported by the News Agency of Nigeria.
Suspension
The report stated that the Rep. Henry Nwawuba (PDP-Imo) in his motion, said Cabotage vessel finance fund was established by the Coastal and Inland Shipping (Cabotage) Act, 2003 to promote the development of indigenous ship acquisition capacity, the report added:
- “He said this is by providing financial assistance to Nigerian operators in the domestic coastal shipping.
- “He is concerned that since the establishment of the Cabotage Vessel Finance Fund, there have been no reliable data as to the total amount that has so far accrued to the Fund.
- “There was no certainty as to the actual worth of the fund at the moment, adding that since the establishment of the Cabotage Vessel Finance Fund in 2003, there was no record of any Nigerian citizen or company who had benefited from the fund” according to the Rep member.
Contract Audit
The House directed the Committee on Local Content to engage an external auditor to audit all contracts entered into in the cabotage regime and report same to the House within seven days, urging them to present an audited statement of account showing all monies that have accrued to the Cabotage Vessel Finance Fund within seven days.
The committee is to commence immediate investigations into the Cabotage Vessel Finance Fund to determine all monies that have accrued to the fund since its establishment in 2003 and report to the House within 14 days.
The Minister of State for Transport and NIMASA Director-General are also expected to report to the House Committee on local content on the state of the Cabotage Vessel Finance Fund and how the funds have been applied over the past 20 years.
Backstory
Recall Nairametrics reported recently that The Nigerian Government revealed that it is about to commence the disbursement of the Cabotage Vessel Financing Fund.
They added that the total exposure of the CVFF is within the region of 350 million dollars and this amount is 50 per cent of NIMASA control.
- The total exposure of the CVFF is within the region of 350 million dollars and this amount is 50 per cent of NIMASA control.
- The primary lending institutions will provide 35 per cent and shipowners will have to provide 15 per cent, making 50 per cent in total.
- The NNPC agreed to offer them nine per cent so that the shipowners will only have to source for only six per cent.
