The former President of the National Association of Master Mariners (NAMM), Capt. Tajudeen Alao, has called for a comprehensive audit of the Nigerian Maritime Administration and Safety Agency (NIMASA) accounts from 2004 to date.
The call according to him, was to establish the actual status of the Cabotage Vessel Financing Fund (CVFF).
Alao asserted that 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).
Speaking on the controversy, the former NAMM president 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.
However, 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.
According to Alao, 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.
He described the situation as detrimental to Nigeria’s maritime industry and efforts to develop indigenous shipping capacity.
Alao 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 stressed 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.
The controversy surrounding the fund’s status has intensified following conflicting accounts by past and present NIMASA leadership over its currency denomination, conversion and management.
Alao maintained that a comprehensive audit would establish the facts, promote transparency and address the lingering questions surrounding the financial status of the CVFF.
