The Nigerian House of Representatives has urged the Nigerian Maritime Administration and Safety Agency, NIMASA, to continue the planned disbursement of $700 million to Nigerian citizens and companies.
This was disclosed by the Chairman House Committee on Nigerian Content Development, Legor Idagbo, at a media briefing in Abuja.
Idagbo said that the decision followed resolutions reached at the sitting of the House on Tuesday, 4 May 2023, where it deliberated on a motion on the Planned Disbursement of $700 Million Cabotage Vessel Finance Fund, and investigate the Total Accrual of the Fund, and referred same to the House Committee on Nigerian Content Development.
He said that “the Committee requested the Nigerian Maritime Administration and Safety Agency and the Ministry of Transportation to provide detailed information on the total amount accrued to the Fund and disbursements since inception.”
“The Committee met the Minister of Transportation and the Director General of the Nigerian Maritime Administration and Safety Agency ({NIMASA) on Thursday, 11 May, 223 to find out about the details concerning the matter. After a thorough analysis of the various submissions on the matter coupled with the explanations given by the Ministry and NIMASA, the Committee discovered that due process was followed in the planned disbursement of the Cabotage Vessel Finance Fund. The Committee noted that the Cabotage Vessel Finance Fund (CVFF) is a fund that was set up in 2003 by the Coastal and Inland Shipping Act. The Fund was established to develop indigenous ship acquisition capacity and to provide financial assistance to indigenous shipping operators.
“The Committee further notes that there is a lack of Capacity amongst indigenous/ Domestic Coastal operators in Nigeria, thus the reason Nigerian National Petroleum Corporation Limited (NNPCL) still awards contracts to foreign shipping Companies in contravention of the Cabotage and Nigerian Oil and Gas Industry Content Development (NOGICD) Act. Some of these awards have been previously investigated by the Committee which led to their cancellation. It was also discovered that the total funds of $360m in the Cabotage Vessel Finance Fund (CVFF) account with the Central Bank of Nigeria (CBN) represents 50%, while the remaining counterpart funds of 50% are from stakeholders and Banks which is 15% and 35% respectively,” Idagbo explained.
He also said that in given findings during the investigation, the Committee made the following recommendations;
“NIMASA should go ahead with the disbursement of the Cabotage Vessel Finance Fund (CVFF) in compliance with the extant laws and laid down guidelines for the said disbursement.
“To ensure the disbursement does not violate any of the extant laws made by the National Assembly, the following persons were Nominated to supervise the disbursement process:
“Legor Idagbo – Chairman
Henry Nwawuba – Member
Mrs. Kehinde Bolade Olaiya – Committee Clerk
“An Audit firm Stratford hill and Co. was appointed by the committee as the coordinating enforcement auditor for the CVFF.”
The Committee also applauded the NNPCL for its commitment to awarding shipping contracts to indigenous companies that have built capacity to the level where they can successfully execute these contracts.
“The Committee is grateful to the leadership of the House for the confidence bestowed on it to carry out the investigation,” the lawmaker said.
VON