Even though there is no official confirmation yet, notable figures in the Nigeria Maritime Administration and Safety Agency (NIMASA) have given an insight into how the multi-billion Naira Cabotage Vessel Financing Fund,(CVFF) was spent.
The CVFF was created by Cabotage Act of 2003 to promote the development of indigenous ship acquisition capacity by providing assistance to Nigerian operators in domestic and coastal shipping.
Even though there is no official confirmation yet, notable figures in the Nigeria Maritime Administration and Safety Agency (NIMASA) have given an insight into how the multi-billion Naira Cabotage Vessel Financing Fund,(CVFF) was spent.
The CVFF was created by Cabotage Act of 2003 to promote the development of indigenous ship acquisition capacity by providing assistance to Nigerian operators in domestic and coastal shipping.
It is also a consolidated fund accruable from the 2 percent levy payable by ship owners on any vessel engaged in coastal trading as well as revenue accumulated from tariffs, fines and waiver under the Cabotage Act.
But, in a shocking confirmation of the earlier rumour that the Fund which had accumulated to about N60Billion, at least two top managers at NIMASA spoke to our correspondents about how the fund was disbursed, even as they affirmed that they were not specifically used to acquire ships.
One of them, who stoutly defended the maritime agency, explained that there was an approval that the CVFF should be used to fund capacity development in some academic institutions, and the establishment of new academic institutions.
Specifically, he confirmed that, a large chunk of the CVFF was used for the controversial National Seafarers Development Programme (NSDP), in which more than 2500 cadets were sent overseas for nautical science, marine engineering and maritime transport courses. By its own admission, NIMASA has so far committed about N20Billion into the NSDP.
According to the source, some funds were also taken from the CVFF for the inauguration of Institutes of Maritime Studies in six Nigerian Universities.
Apart from these, the CVFF was also used for the construction of the Technical College, the Maritime University and the Ship yard, all in Delta state.
While the first source acknowledged the spending, the second source however justified it, saying that there was approval for the diversion of the CVFF.
He claimed that the application of CVFF to other areas other than ship acquisition is actually in line with the provisions of the guidelines form the implementation of the CVFF.
Specifically, he quoted a section of the guidelines which according to him, allows for the fund to be used for “the development of ship yard/ maritime infrastructure to facilitate vessel construction, repairs and maintenance; and other shipping ancillary projects relating to the development of tonnage capacity and ship yards; among other things,”
He nevertheless argued that it is erroneous to allege that the CVFF has been depleted.
Shipping Position Daily recalls that notable ship owners have been criticizing the non-disbursement of the CVFF.
One of them, Engineer Greg Ogbeifun told reporters in Lagos recently that the last leg of the disbursement process ended on the table of former President Goodluck Jonathan and the Department of State Security (DSS).
Ogbeifun, who is the Chief Executive Officer of Starz Investment Limited, disclosed that his firm was also penciled down by NIMASA as a beneficiary of the CVFF , but lamented that the funds were yet to be disbursed, about 12 years after the Cabotage Act was enacted.
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