Reps summon NIMASA DG, demand suspension of $700m disbursement for ships

May 02

19:47 2023

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The house of representatives has asked the Nigerian Maritime Administration and Safety Agency (NIMASA) to suspend the planned disbursement of the $700 million from the cabotage vessel finance fund (CVFF).

The resolution was passed during plenary on Tuesday, following the adoption of a motion sponsored by Henry Nwawuba, an All Progressives Grand Alliance (APGA) lawmaker.

In April, Bashir Jamoh, director-general of NIMASA, had said operators in the maritime sector would get about $700 million to purchase ships.

The CVFF was established by the Coastal and Inland Shipping (Cabotage) Act, 2003, to promote the development of indigenous ship acquisition capacity by providing financial assistance to Nigerian operators in domestic coastal shipping.

The law provides that 2 percent of all contract sum performed by any vessel engaged in the coastal trade shall be paid into the CVFF for the development of domestic coastal shippers.

While moving the motion, the lawmaker claimed that since the establishment of the CVFF in 2003, there is no record of any Nigerian citizen or company that has officially benefited from the fund as stated in the document.

The lawmaker alleged that more than 20 years after the enactment of the act; the ministry of transportation, in collaboration with the NIMASA, has “misappropriated the funds designated to promote the development of indigenous ship acquisition capacity and that the act has not achieved its objectives”.

The motion was adopted when it was put to a voice vote by Femi Gbajabiamila, speaker of the house.

Subsequently, the house summoned Mu’azu Sambo, minister of transportation; and Jimoh to appear before the committee to provide details of the CVFF and “how the funds have been applied over the past 20 years”.

The lawmakers asked NIMASA to produce an audited statement of account “showing all monies that have accrued to the CVFF not later than seven days“.

The house also directed the committee on local content to “immediately” commence investigations into the CVFF to determine all monies that have accrued to it since 2003.