In a dramatic turn of events, a Federal High Court in Ikoyi, Lagos has ordered the Nigerian Maritime Administration and Safety Agency (NIMASA) to fully disclose details of accruals and disbursements of the controversial Cabotage Vessel Financing Fund (CVFF).
The case which was filed under the Freedom Of Information (FOI) Act by some ship owners and a Nigerian Content Advocacy group, called ‘Borderless’, was heard by Justice A. O Awogboro.
The order was given on October 21, 2022.
The Cabotage Vessel Financing Fund is a two per cent contribution by indigenous ship owners involved in coastal and inland shipping trade in Nigeria’s maritime domain.
The immediate past Minister of State for Transportation, Senator Gbemisola Saraki said recently that the fund has risen from 195 million dollars to 350 million dollars (or about N210bn) in one year.
Our correspondent confirmed last week that the Nigerian Content Advocacy group; Borderless is the ‘vehicle’ through which the ship owners filed the suit, demanding full disclosure on the CVFF.
The Suit No: FHC/L/CS/1795/2021 is between Borderless and both NIMASA and the Attorney General of the Federation, both of which were joined as 1st and 2nd respondents, respectively.
In the Certified True Copy (CTC) of the judgement which was obtained by our correspondent, the Judge ordered NIMASA (first Respondent) to furnish the NGO with all information concerning the CVFF, including total accrual and disbursement since the implementation of the Cabotage Act commenced.
The plaintiff had prior to approaching the Court, written to NIMASA through its counsel; Kusamotu and Associates, demanding details of the CVFF, relying on the provision of the FOI Act of 2011.
The letter, dated October 5, 2021, and addressed to the Director General of NIMASA, specifically demanded for the aggregate amount that has accrued to CVFF since the inception of the Act.
It also requested to know if: “the CVFF has been misapplied and/or misappropriated at all since inception; if so how much has been disbursed outside its objective and to whom”.
Thirdly, the group seeks to know “how much has been disbursed from the fund thus far, for what purpose, and who are the beneficiaries.
The letter also notified NIMASA that the FOI Act allows a seven-day window for responses after receipt of request under the Act, “failing which kindly take this letter as the statutory 30 days’ pre-action notice for legal action”.
Our correspondent confirmed last week that, after waiting endlessly for NIMASA for the CVFF details, the NGO went to court, to mandate the agency to comply.
It was also confirmed that the law firm had written a similar letter to NIMASA in 2014.
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However, in full compliance with the provision of the FOI Act, NIMASA had furnished details of the CVFF collection.
In a letter dated 31st July 2014, and signed by Barrister Nwabueze C. Obi, then-Executive Director, Maritime Labour and Cabotage Services of NIMASA, the CVFF was confirmed to have accumulated to N29,912,410,730.83, while the Dollar component was given as $57,030,085.40.
The letter also confirmed that, “no amount has been disbursed from inception, however, six companies have been recommended to the Honourable Minister of Transport for disbursement and approval is being awaited”.
But, in the suit filed in the Federal High Court, Ikoyi, Lagos, the applicant sought an order of Mandamus directing NIMASA to open up on details of the CVFF, in accordance with the October 5, 2021 letter. It also sought a declaration of the court that withholding information on the CVFF, is a violation of the FOI Act.
Giving a ruling, the Judge granted all the prayers of the Plaintiff. The Judge also directed NIMASA to comply with the request of the Plaintiff as contained in the October 5, 2021 letter.
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