Shipowners accuse FG of tampering with CVFF fund, demand forensic audit

Nigerian shipowners have accused the Federal government of tampering with the proceeds of the Cabotage Vessel Financing Funding (CVFF), calling for a forensic audit to determine its true value before setting guidelines for its disbursement.

The CVFF, which is a two percent contribution by indigenous ship-owners from every contract they executive, was introduced to develop local shipping capacity. But till date, more than 18 years ago, the over $250million which has accrued into the fund, has yet to be disbursed to any shipowner.

Speaking at the 2022 stakeholders’ forum organised by the Alumni of Maritime Academy of Nigeria Oron (AMANO) with the theme, ‘The State of the Nigerian Maritime Domain in 2022 and Beyond’ in Lagos on Thursday, Chairman, Starzs Investments Company Limited, Engr. Greg Ogbeifun said since the establishment of the Cabotage Act not a dime of the fund has been disbursed, while operators continue to contribute two per cent of their contract values into the fund.

“We need to forensically carry out an audit to determine how much has been accrued into that fund. We started contributing into that fund the moment it was established and as we speak, two percent of our contract value is still being deducted,” he said.

Ogbeifun explained that until a new guideline for the disbursement of the fund is developed by the Minister of Transportation, Rotimi Amaechi, anyone interfering with the fund is committing a crime.

“We are stuck at the moment and anybody interfering with that fund is breaking the law. We need to review the requirement of the Act to enable that fund to be unlocked.

“The Act is very clear and unless it is modified to reflect otherwise, it is mandatory that the Minister must come out with the guidelines taking cognizance of the fact that the funds are no longer in commercial banks but now in government coffers. So, if you take the existing guidelines, you will find that there is a role that the PILs have to play in the funding. So, until the Central Bank can play that role or there is a completely new arrangement, anybody touching that fund is committing a crime,” he said.

In his presentation titled, ‘How to be among the respected maritime nations,’ Ogbeifun said while the nation’s maritime industry has huge untapped potentials, absence of cooperation and synergy among stakeholders that would implement recommendations to restructure and position the industry as well as inadequate platforms are major factors militating against its development.

He recalled that recent efforts to establish a national fleet failed due to the nation’s unfavorable trade policies and tax laws and not because indigenous shipowners could not raise the 60 percent stake allotted to them as claimed by the Minister.

“Once our tax laws are right and tonnage taxes are reviewed, the government does not even need to invest in buying ships. Private sector can now key-in knowing that then they will become competitive with their foreign partners,” he said.

In his goodwill message, the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh said the disbursement of the fund has been politicised but assured that the fund would be disbursed.

He explained that the issue of audit is a statutory requirement that NIMASA account must be audited annually and the audit includes the CVFF account.

“We know what we have there and nobody can touch the money. But there are technically issues regarding the disbursement but we will continue to do what is right until the fund is disbursed. Upon all these, we will not rule out the fact that the issue of the CVFF is politicised,”

In his welcome address, the President of AMANO, Mr. Emmanuel Maiguwa said, with the advancement of ideas and technologies disrupting leading industries all over the world, it has become imperative that as leaders and players in the maritime industry, stakeholders must optimise all available resources and think outside the box to ensure that the Nigerian maritime industry is abreast and at par with standards and best practices all over the world

“The stakeholder’s forum exists for this very reason; to drive important conversations amongst all relevant parties to tackle challenges in the industries that could impact the safety, security, and economy of the maritime industry and how it affects the country and beyond.

“The theme of the forum seeks to promote synergy between members, agencies, and stakeholders towards offering sustainable solutions to the challenges of the maritime domain as well as encourage intellectual and emotional ties between the academia and practitioners in the maritime industry,” he said.

Picture Caption:

Chairman, Starzs Investments Company Limited, Engr. Greg Ogbeifun (left) and the President, Alumni of Maritime Academy of Nigeria Oron (AMANO), Mr. Emmanuel Maiguwa, at the 2022 stakeholders’ forum organised by AMANO in Lagos on Thursday.