Following conflicting accounts over the status and currency denomination of the Cabotage Vessel Financing Fund (CVFF), maritime stakeholders have called for a comprehensive audit of the Nigerian Maritime Administration and Safety Agency (NIMASA) accounts from 2004 to date to establish the actual financial position of the fund and determine whether dollar-denominated contributions were converted to naira.
While former NIMASA Director-General, Temisan Omatseye, had maintained that the funds were converted to naira during his tenure, the current Director-General, Dr Dayo Mobereola, has dismissed the claim, insisting that contributions remitted in US dollars remain in dollars with the Central Bank of Nigeria (CBN), while those paid in naira are retained in the local currency.
The disagreement has attracted reactions from maritime stakeholders, with the Nigeria Shipowners Association (NISA) demanding clarification from the Minister of Marine and Blue Economy, Adegboyega Oyetola, while former President of the National Association of Master Mariners (NAMM), Capt. Tajudeen Alao, has called for an independent audit of NIMASA’s accounts.
Alao said an independent audit would help resolve the lingering controversy over the management and currency denomination of the fund, particularly conflicting claims about whether the dollar-denominated contributions were converted to naira or remained in dollars with the Central Bank of Nigeria (CBN).
Speaking on the controversy, the former NAMM president said a former Director-General of NIMASA had confirmed that the dollar funds were converted to naira and deposited with the CBN during his tenure.
However, he noted that if the current Director-General maintained that the funds were still domiciled in dollars with the apex bank, such a position should be regarded as the agency’s current account of the situation.
According to Alao, only a comprehensive audit covering the period from 2004 to date would establish the true financial position of the fund and provide clarity on its management over the years.
He also expressed concern over the prolonged delay in disbursing the CVFF, lamenting that the failure to make the fund accessible to indigenous shipowners for more than two decades had forced many operators out of the shipping business.
He described the situation as detrimental to Nigeria’s maritime industry and efforts to develop indigenous shipping capacity.
Alao further argued that cargo guarantees and the ship-management capacity of prospective beneficiaries should be considered among the eligibility requirements for accessing the fund.
He explained that prospective beneficiaries must demonstrate the ability to manage vessels and secure cargo to ensure that loans obtained from the fund are effectively utilised and repaid.
He stressed that the CVFF was established to support indigenous shipowners and strengthen local participation in shipping, adding that its prolonged non-disbursement had undermined the objectives for which it was created.
On his part, NISA President, Sola Adewumi, said the ministry and NIMASA should address Omatseye’s claims, arguing that the guidelines governing the administration of the CVFF did not provide for converting contributions from dollars to naira.
Adewumi questioned the rationale behind converting the fund when shipowners continued to make payments to the relevant authorities in US dollars for shipping-related transactions and other obligations.
According to him, the ministry and NIMASA should explain why the fund would be converted to naira when shipowners were still required to make their payments in dollars.
“If you have heard from the former DG that the money has been converted to naira, it is left for the DG and the ministry to counter what the man has said because he was once in that position, so he should know better than people like us,” Adewumi said.
“Money was not meant to be converted to naira ordinarily because we are paying in dollars. Even as we speak, we still pay them in USD. So, why are they converting it to naira? These are the questions we should ask ourselves,” he said.
Adewumi maintained that the existing CVFF guidelines only stipulated the contributions expected from shipowners without making provisions for converting the fund into the local currency.
He argued that if the government intended to maintain the fund in naira, the authorities should explain why contributions and other shipping-related payments were still required in dollars.
“Does the guideline say that the money should be converted? No. The guideline only says that we should contribute, and for all the transactions we are doing, we are paying for shipping, developing, and it’s usually in USD. So, if they want it in naira, then why should they ask us to be paying in USD?” he queried.
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