NIMASA Faults Reports On Alleged Conversion Of CVFF To Naira, Insists Fund Remains Intact
NIMASA Faults Reports On Alleged Conversion Of CVFF To Naira, Insists Fund Remains Intact
By Success Okezie
The Nigerian Maritime Administration and Safety Agency (NIMASA) has faulted reports making the rounds that the Cabotage Vessel Financing Fund (CVFF) has been converted from United States dollars to naira, describing the claim as false, misleading and lacking factual basis.
The Agency was reacting to reports credited to a former Director-General of NIMASA, Mr. Omatseye, who had alleged that the dollar component of the CVFF had been converted to naira to attract higher interest rates.
In a strongly worded rebuttal, NIMASA said the allegation does not reflect the true status of the Fund and should be disregarded by stakeholders and the general public.
“The attention of the Management of the Nigerian Maritime Administration and Safety Agency (NIMASA) has been drawn to reports circulating in some sections of the media alleging that the Cabotage Vessel Financing Fund (CVFF) has been converted to naira and is no longer being held in United States dollars,” the statement noted.
The Agency clarified that the CVFF accrues in different currencies depending on the source of contribution, and that its management has remained consistent with established financial procedures.
According to NIMASA, all funds remitted in United States dollars are warehoused in dollars with the Central Bank of Nigeria (CBN), while contributions made in naira are retained in naira, stressing that at no time was the dollar-denominated component converted to local currency.
“For the avoidance of doubt, this claim is incorrect and does not reflect the actual status of the CVFF. The revenue streams accruing to the CVFF are denominated in different currencies. Accordingly, funds remitted in United States dollars are retained in dollars with the Central Bank of Nigeria (CBN), while contributions remitted in naira are retained in the local currency. There has been no conversion of the dollar-denominated component of the CVFF to naira,” the Agency stated.
NIMASA also provided an update on the much-anticipated disbursement of the Fund, noting that the Honourable Minister of Marine and Blue Economy, His Excellency Adegboyega Oyetola, CON, is working assiduously to ensure that qualified indigenous shipowners benefit from the Fund without further delay.
The Agency disclosed that it has received applications from eligible beneficiaries, with many already at advanced stages of documentation with their respective Primary Lending Institutions (PLIs) in line with the disbursement guidelines.
It expressed optimism that with the level of work done so far, the disbursement process would commence shortly, bringing to an end years of waiting by indigenous operators.
NIMASA stressed that the Minister’s commitment to the disbursement of the CVFF aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR, which prioritises the empowerment of local operators, strengthening of indigenous capacity and boosting the competitiveness of Nigeria’s maritime industry in the global shipping community.
The Agency therefore urged maritime stakeholders, industry operators and members of the public to disregard the misleading reports and rely only on official information from NIMASA regarding the CVFF, warning that misinformation was capable of creating unnecessary anxiety in the industry.
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