From Ndubuisi Orji, Abuja
House of Representatives has said the Nigerian Maritime Administration and Safety Agency (NIMASA) can go ahead with the planned disbursement of cabotage fund $700 million to Nigerians and companies.
The chairman, House Committee on Nigerian Content Development, Legor Idagbo, stated this,at a press briefing, in Abuja.
Idagbo said the decision to allow the NIMASA proceed with the disbursement followed a meeting between his committee, the Ministry of Transport and the agency.
Recall that the House had, last month urged NIMASA to halt the disbursement pending an investigation into the the total accrual to the fund.
Nevertheless, Idagbo explained that “The Committee met with the Minister of Transportation and the Director General of the Nigerian Maritime Administration and Safety Agency ({NIMASA) on Thursday, 11 May, 2023 to find out about the details concerning the matter. After a thorough analysis of the various submissions on the matter 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.
“The Committee notes that the Cabotage Vessel Finance Fund (CVFF) is a fund that was set up in 2003 by the Coastal and Inland Shipping Act. The Fund was established for the purpose of developing indigenous ship acquisition capacity, and to provide financial assistance to indigenous shipping operators.
“The Committee further notes that there is a lack of Capacity amongst indigenous/ Domestic Coastal operators in Nigeria, thus the reason Nigerian National Petroleum Corporation Limited (NNPCL) still awards contracts to foreign shipping Companies in contravention of the Cabotage and Nigerian Oil and Gas Industry Content Development (NOGICD) Act.”
The lawmaker added that “Some of these awards have been previously investigated by the Committee which led to their cancellation. 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.
” That NIMASA should go ahead with the disbursement of the Cabotage Vessel Finance Fund (CVFF) in compliance with the extant laws and laid down guidelines for the said disbursement.
” To ensure the disbursement does not violate any of the extant laws made by the National Assembly, the following persons were Nominated to supervise the disbursement process.”