Former Master Mariners President, Capt. Tajudeen Alao, says NIMASA’s accounts from 2004 must be audited to know how much is really in the Cabotage Vessel Financing Fund, CVFF.
According to him, an independent audit would help resolve the lingering controversy over the management and currency denomination of the fund, particularly conflicting claims about whether the dollar-denominated contributions were converted to naira or remained in dollars with the Central Bank of Nigeria (CBN).
He highlighted that a former Director-General of NIMASA had confirmed that the dollar funds were converted to naira and deposited with the CBN during his tenure.
He noted that if the current Director-General maintained that the funds were still domiciled in dollars with the apex bank, such a position should be regarded as the agency’s current account of the situation.
He explained that only a comprehensive audit covering the period from 2004 to date would establish the true financial position of the fund and provide clarity on its management over the years.
He also expressed concern over the prolonged delay in disbursing the CVFF, lamenting that the failure to make the fund accessible to indigenous shipowners for more than two decades had forced many operators out of the shipping business.
Also described the situation as detrimental to Nigeria’s maritime industry and efforts to develop indigenous shipping capacity.
He further argued that cargo guarantees and the ship-management capacity of prospective beneficiaries should be considered among the eligibility requirements for accessing the fund.
He explained that prospective beneficiaries must demonstrate the ability to manage vessels and secure cargo to ensure that loans obtained from the fund are effectively utilised and repaid.
He emphasised that the CVFF was established to support indigenous shipowners and strengthen local participation in shipping, adding that its prolonged non-disbursement had undermined the objectives for which it was created.
He maintained that a comprehensive audit would establish the facts, promote transparency and address the lingering questions surrounding the financial status of the CVFF.