Maritime groups demand forensic audit of NIMASA's Cabotage vessel fund

Maritime industry groups are pressing for an independent forensic audit of the Nigerian Maritime Administration and Safety Agency (NIMASA), after past and present leaders of the agency gave conflicting accounts of the Cabotage Vessel Financing Fund (CVFF).

The fund was set up under the Coastal and Inland Shipping (Cabotage) Act to give loans and financing support to indigenous shipowners. Tribune reported the fund at about $700m.

At the centre of the dispute is whether the dollar contributions were converted to naira or are still held in dollars at the Central Bank of Nigeria (CBN).

Former NIMASA Director-General Temisan Omatseye said dollar-denominated contributions were converted into naira and placed in fixed deposits during his tenure, according to the Sea Empowerment and Research Centre (SEREC). The current Director-General, Dr Dayo Mobereola, has maintained that the fund remains in dollars with the CBN.

What the groups are asking for

SEREC, in a statement titled “Cocks Crow at Dawn — On the CVFF Audit Crisis”, said the conflicting accounts raise questions about the fund's real value, where it is kept and how it is managed.

The group, in a bulletin signed by its Head of Research, Eugene Nweke, wants an audit covering all contributions, currency conversions, investments, accrued interest and administrative transactions from 2004 to date. It insisted no disbursement should happen before that audit.

SEREC warned that converting dollar contributions to naira could have exposed the fund to heavy foreign exchange losses as the naira weakened over the years, eroding its value and defeating its purpose.

It also said the CVFF is contributors' money, not government largesse, and that shipowners have a right to see documentary evidence of how much has accrued, where it is domiciled, the interest earned and what is available to lend.

Capt. Tajudeen Alao, a former President of the National Association of Master Mariners (NAMM), backed the call for a full audit of NIMASA's accounts from 2004. He said only such a review would settle the currency question and establish the fund's true position.

Alao said the failure to disburse the fund for more than two decades had pushed many indigenous operators out of shipping. He wants cargo guarantees and proven ship-management capacity added to the conditions for accessing the loans, so beneficiaries can repay.

Separately, the Nigeria Shipowners Association (NISA) has asked the Minister of Marine and Blue Economy, Adegboyega Oyetola, to explain the reported conversion. NISA President Sola Adewumi said the fund should stay in US dollars, noting that shipowners still pay their contributions and shipping bills in dollars.

“Does the guideline say that the money should be converted? No,” Adewumi said, arguing that the rules only state what shipowners should contribute.

What happens next

None of the groups has said who should carry out the audit or when. For now, the question of whether the fund is in naira or dollars rests on the word of the two NIMASA leaders, and the calls for an independent review are growing louder.