The House of Representatives has suspend the planned disbursement of $700 million Cabotage Vessel Financing Fund (CVFF) to Nigeria shipping companies by the Nigerian Maritime Administration and Safety Agency (NIMASA).
Adopting a motion of urgent public importance brought before the House by Hon Henry Nwawuba, the House also directed the agency to present an audited statement of account showing all monies that have accrued to the CVFF within seven days.
The committee is also to commence immediate investigations into the Cabotage Vessel Finance Fund to determine all monies that have accrued to the Fund since its establishment in 2003 and report to the House within 14 days.
The lawmakers also asked the Minister of State for Transportation and NIMASA Director-General to report to the House Committee on local content on the state of the Fund and how the funds have been applied over the past 20 years.
Shipping Position Daily recalls that the Minister of Transportation, Muazu Jaji Sambo, had in December announced approval for the disbursement of the $350 million Cabotage Vessel Financing Fund (CVFF) by the President, Muhammadu Buhari.
Sambo had made the disclosure at the flag-off ceremony of the third phase of the Nigerian Seafarers Development Program (NSDP) held at the Naval dockyard in Lagos.
The Minister stated that plans are ongoing to approach the Minister of Finance and Budget Planning and the Central Bank of Nigeria.
Sambo said that the fund would be disbursed to five primary lending institutions.
Sambo said “President Muhammadu Buhari has approved my request for the disbursement of the CVFF Fund. Finally, we are breaking the 17-year-old jinx.
“CVFF Fund which has hit over $350million is warehoused in the Treasury Single Account (TSA) of the Federal Government, it would be transferred to the approves primary lending institutions”.
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