DESPITE assurances from the Nigerian Maritime Administration and Safety Agency (NIMASA) that the N50 Cabotage Vessel Financing Fund (CVFF) is intact, there are indications that the money may have been depleted or diverted to other purposes by the last administration.

Since 2014 when six local shipping companies were penciled down as beneficiaries, none of them has accessed the fund, despite having scaled the due diligence hurdles and other eligibility tests.

Fund custodians said, they were reportedly awaiting the approval of former President Goodluck Jonathan, which never came till he left office. The CVFF fund is derived from the 2 per cent levy charged on the value of any cargo coming into the country.

Aside that scheme, there was also a vessel repair fund of over N1 billion also domiciled with NIMASA but which no local shipping company has enjoyed till date.

But while the local shippers await funds for purchase new vessels, most of them have already been forced out of business due to their outdated vessels which have not been replaced with modern ships.

Today only Slok Shipping and Starz Maritime with a few other thriving local shipping firms, majority of Nigeria’s shipping companies are neck deep in debts, worsened by lack of crude oil lifting contracts.

But as at the time of this report, fears were rife that the money may have been diverted to prosecute political programmes of the last administration or used as part of the funds for the construction of the Nigerian Maritime University, Okerenkoko in Delta State.

A top government source who confided in Daily Sun said: “That money may have been spent or tampered with and it is very obvious. At a point, I learnt part of it was used to fund the NSDP. For about three years now, no local shipper has accessed the CVFF. We hear the money is ballooning and yet indigenous shippers are dying gradually. They have passed all the tests so why not give them if truly the money is intact? Government needs to fully audit NIMASA to know what happened to that money because I am not so sure it is still intact”, he said.

But reacting to the allegations, the CVFF has been misused, the Acting NIMASA Director General, Baba Haruna Jauro, insists the money has not been spent contrary to insinuations.

“The money is there. What happened is that applications were brought, processed and sent to the Ministry of Transport and the Ministry wants to observe due diligence because of the experience they had in the past. They were really trying to scrutinise and because the money is big, they want to be sure they enter safe hands. They also wanted to be sure the money isn’t misused and while doing that, the government was changed and we are hopeful that a new Minister will find the forms that were processed and vetted and waiting for his approval. He would look at them and approve and those who are beneficiaries can receive the funds and buy the ships. Nobody has the right to spend the money. Even for us in NIMASA, we cannot touch it”, he assured. But more worrisome is the fact that since its inception more than four years ago, no operator has benefitted from it despite the yearning need for new vessels in the country.

The CVFF is a single digit interest loan packaged by NIMASA but warehoused in four primary lending institutions namely (Diamond Bank, Skye Bank, Fidelity Bank and Sterling Bank). It is captured under Section viii, paragraph 42 of the Coastal and inland shipping (Cabotage) Act of 2003 with the primary purpose to promote the development of indigenous ship acquisition capacity to enable Nigerians participate in the crude lifting contracts, currently dominated by foreign shippers.

Under the scheme, a prospective loan applicant must provide 15 per cent of the amount applied for as a way of showing sufficient commitment, the bank brings 35 per cent while NIMASA supplies the balance of 50 per cent.

Since the fortunes of the local shipping firms took a hit over 10 years ago due to global economic meltdown, corruption and policy summersault, about 20,000 direct and indirect jobs have been reportedly lost.


http://www.zubbyblog.com/anxiety-mounts-over-custody-of-n50bn-ship-acquisition-fund/

No conscience under Jonathan administration.
Embezzlement without any remorse to national progress..Posterity will judge them all.


How people go dey divert fund wey their grandfather no keep for them go personal account.
Oya milenu !!!!

another one?

See money wen people chop,and people dey wen dey die of hunger for d same naija. How I wish dis administration fit really jail them. I don't see that coming,because they are all friends and family. Who no loyal to baba,Na only em go enter jail......because by now,if this anti corruption is real. The ex president is supposed to be answering some questions. Like seriously,forget say he do peaceful election and he dey get award everywhere. Nigeria was seriously cheated. But Na my papa I blame wen no gree do politics..chai.....