Former National Association of Master Mariners President Capt. Tajudeen Alao wants an audit of the Nigerian Maritime Administration and Safety Agency’s (NIMASA) accounts from 2004 onward amid a dispute over the Cabotage Vessel Financing Fund (CVFF). BusinessDay and Independent reported his call on Nov. 2 as accounts differed over the fund’s dollar receipts and custody.
NIMASA says the CVFF was established under section 42 of the Coastal and Inland Shipping (Cabotage) Act 2003 to help Nigerian operators in domestic coastal shipping acquire vessels. The agency’s FAQ says the fund offers loans or guarantees and receives, in part, a 2% surcharge on contracts performed by vessels in cabotage trade.
Former NIMASA Director-General Temisan Omatseye told BusinessDay that an Accountant-General’s Office memo during his 2009–2010 tenure instructed the agency to convert foreign-currency internally generated revenue, including CVFF contributions, into naira. He also said NIMASA held N52 billion in fixed deposits across the CVFF and Maritime Fund as of Dec. 13, 2010.
BusinessDay reported on Nov. 2 that NIMASA’s position is that dollar receipts remain in dollars at the Central Bank of Nigeria (CBN), while naira receipts stay in naira. In a Nov. 19, 2024, release, NIMASA said no CVFF funds were missing and placed the account at the CBN under the Treasury Single Account. Its FAQ separately sets out a post-waiver plan to keep the fund at a deposit money bank selected by NIMASA.
NIMASA’s June 2023 release cited a House of Representatives committee report that put the account at $360 million. The agency described that as 50% of the financing, with stakeholders accounting for 15% and banks 35%; the dated figure does not establish the current balance. The current FAQ says NIMASA may cover up to 70% of costs or $25 million, whichever is lower, while the applicant and lending institution each contribute at least 15%. It also says lending institutions carry all credit risk on NIMASA’s contribution. The agency has not explained the difference between the two financing splits.
BusinessDay reported that 92 applications had been submitted since the portal opened in January. As of Nov. 2, one had cleared NIMASA and bank assessments and was awaiting ministerial approval.
