By Gift Chapi Odekina
The House of Representatives Direct the House Committee on Local Content to immediately commence
investigations into the Cabotage Vessel Finance Fund to determine all monies
that have accrued to the Fund since its establishment in the year 2003,and
report to the House within 7 days.
They also directed the House Committee On Local Content to engage an external auditor to audit all contracts that have entered into in the cabotage regime and report
same to the house within 7 days.
They further Direct the Nigerian Maritime Administration and Safety Agency (NIMASA)
to immediately stop the planned disbursement of $700 million to Nigerian citizens and companies and to lay before the floor of the House, an audited
statement of account showing all monies that have accrued to the Cabotage vessel Finance Fund not later than 7days from the date of this resolution.
The resolutions followed a motion moved on the floor by Rep. Henry Nwawuba during plenary in Abuja.
According to him, 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 and thus, there is no certainty as to the actual worth of the fund at the moment.
He expressed concerned that since the establishment of the Cabotage Vessel Finance Fund in the year 2003, there is no record of any Nigerian Citizen or company who have
officially benefited from the fund as stated in the Act.
“Recall that 2018, the then Director General of the Nigerian Maritime
Administration and Safety Agency (NIMASA); Dr Dakuku Peterside said the
agency had concluded necessary documentation needed for the disbursement of the CVFF.
“He gave the accruals from the fund at that time to be in excess of US$100
millionhowever, there is no records of such disbursement.
“Also recalls that Mr.Rotimi Amaechi (the then Minister of Transportation) said in
December 2019 that Cabotage Vessel Finance Fund disbursement would commence in January 2020;however,the funds were not disposed as promised.
“Further recall that Dr. Bashir Jamoh, Director-General of the Nigerian Maritime
Administration and Safety Agency, on April 4, 2023, during the Institute of Maritime studies’ first annual lecture at the University of Lagos in Akoka, said that the government will disburse the sum of $700m to ship owners before the end of the current administration.
He expressed worry that the matrix,procedure and condition of the disbursement of the cabotage Vessel Finance Fund is obscure and not transparent and not wholly in accordance with the Coastal and Inland Shipping (Cabotage)Act, 2003.
He said more than 20 years after the enactment of the Coastal and Inland
Shipping (Cabotage)Act, 2003,the Ministry of Transportation in collaboration with
the Nigerian Maritime Administration and Safety Agency (NIMASA) have
misappropriated the funds designated to promote the development of indigenous
ship acquisition capacity,and that the Act has not achieved its objectives.
The House therefore invited the Honourable Minister of State For Transport and the Director
General,Nigerian Maritime Administration and Safety Agency 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.
