House of Reps back NIMASA on Cabotage Vessel Finance Fund Disbursement

The Nigerian Maritime Administration and Safety Agency (NIMASA) has received support from the House of Representatives to disburse the $360 million Cabotage Vessel Finance Fund (CVFF) to qualified Nigerian ship owners.

A committee of the House chaired by Hon. Legor Idagbo in its report gave its support for disbursement at the end of its investigation.

According to a statement by Assistant Director, Public Relations, NIMASA Osagie Edward, “The Committee requested the Nigerian Maritime Administration and Safety Agency and the Ministry of Transportation to provide detailed information on the total amount accrued to the Fund and disbursements since inception.”

The statement read in part, “The Committee met with the Minister of Transportation and the director-general of the Nigerian Maritime Administration and Safety Agency (NIMASA) on May 11`, 2023, to find out about the details concerning the matter.

“After a thorough analysis of the various submissions, coupled with the explanations given by the Ministry and NIMASA, the Committee discovered that due process was followed in the planned disbursement of the Cabotage Vessel Finance Fund.

“It was also discovered that the total funds of $360m in the Cabotage Vessel Finance Fund (CVFF) account with the Central Bank of Nigeria (CBN) represents 50%, while the remaining counterpart funds of 50% is from stakeholders and banks, which is 15% and 35% respectively.”

The Committee also commended the Nigerian National Petroleum Corporation Limited (NNPCL) for its commitment to awarding shipping contracts to indigenous companies that have built capacity to the level where they can successfully execute these contracts.

The NIMASA’s director-general, Dr. Bashir Jamoh, thanked the lawmakers for their interest in verifying the due process being followed by the agency.

Jamoh, who expressed confidence that the NNPCL’s resolve to award maritime contracts to indigenous companies would give strength to the Cabotage regime being championed by the Agency, reiterated NIMASA’s transparency resolve in all facets of the agency’s operation.

DG NIMASA also called for more stakeholder support, stressing that the CVFF would evolve into greater benefits for more Nigerians, “grow the per capita income and Gross Domestic Product (GDP) of Nigeria through the maritime industry.”