28th August, 2014
For decades, the Nigerian Maritime Administration and Safety Agency, NIMASA, the institution vested with the statutory role of administering Cabotage Vessel Financing Funds, a funding scheme established through Coastal and Inland Shipping (Cabotage) Act of 2003 and meant to provide financial leverage to indigenous ship owners in Nigeria, is yet to fulfill its promise to disburse the controversial fund.
Over the years, the issue of non-disbursement of CVFF has been a bone of contention. If there is anything creating serious apprehension and generating hot debates among indigenous ship owners in Nigeria, it is the uncertainty and the secrecy that have trailed the disbursement of the fund. The fund, established 11 years ago identifies Nigerian citizens and shipping companies solely owned by Nigerians as beneficiaries.
Due to the huge capital required in shipping business and the enormous constraints hampering the operations of indigenous shipping companies, CVFF became imperative to boost the capacity of local shipping companies in acquiring the right type and sizes of vessels. The funds are generated through two per cent surcharge of the contract sum performed by any vessel engaged in coastal trading and revenue generated under the act including tariff, fines, and fees for licenses and waiver.
But 11 years on, the fund remains undisbursed while indigenous ship owners are gasping for survival due to the dominance of their foreign counterparts who are more financially buoyant. There are serious doubts about the existence of the fund and how much it has accrued over the years. Has the money been diverted or misappropriated as speculated?
The Minister of Transport, Idris Umar, at a recent public hearing was reported to have said a total of N33.4 billion has accrued to the CVFF in the last 10 years. Six indigenous firms have been selected to benefit from the fund. These are: Starzs Investment Company, Aquashield Oil and Marine Services Limited, Nkrah Investemnt, Nkrah Investment, Zomay Marine and Logistics Limited, UTM Dredging Limited and Seabulk Offshore Operating Nigeria Limited. But when will they really benefit from the fund?
An investigative hearing was held last year where the Speaker of the House of representatives, Aminu Tambuwal, made a remarkable observation that the non-disbursement of the fund has heightened the fear about misappropriating the CVFF money”. The fear is that some unpatriotic people are misapplying the Cabotage Vessel Financing Funds to the detriment of its objective, he said. But nothing candid has come out of the investigative hearing or are the findings being swept under the carpet?
Though the endless wait has compelled many indigenous shippers to seek alternative means of financing, as a matter of urgency and in the name of patriotism, there is a need for the Minister of Transport and Nigerian Maritime Administration and Safety Agency, NIMASA, under the leadership of Patrick Akpobolokemi, to prove its critics wrong by disbursing the fund. Though there could be pressures and conflict of interests, there is a need for the appropriate parties to muster the political will to do the needful. The Minister of Transport and the ministry in charge should know that Nigerians are still asking: when will CVF Fund be disbursed?