$360m Cabotage Funds Not Converted To Naira

The Management of the Nigerian Maritime Administration and Safety Agency, NIMASA, has debunked report that the Cabotage Vessel Financing Fund, CVFF, has been converted to naira from the United States dollars.

The agency said in a statement at the weekend that the report credited to a former NIMASA Director General, Temisan Omtaseye was misconstrued, saying the multi-million dollar CVFF funds remains in dollar denomination.

According to official estimates from NIMASA, the accumulated core fund stands at $350 million to $360 million, while total industry estimates that factor in the broader maritime rescue framework and required bank matching contributions value the overarching initiative at $700 million

Omatseye, the report said, alleged that the conversion to naira was undertaken to enable the Fund earn higher interest rates.

But the maritime agency said the report is untrue, saying efforts are also ongoing by NIMASA Director General, Temisan Omatseye to ensure immediate disbursement of the funds to qualified beneficiaries in the sector.

‘’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, contrary to the allegation.

‘’Meanwhile, the Honourable Minister of Marine and Blue Economy, His Excellency, Adegboyega Oyetola, CON, is working assiduously towards ensuring the imminent disbursement of the Fund to qualified beneficiaries.

‘’The Agency has received applications from eligible beneficiaries, some of whom are currently undergoing the required documentation processes with their preferred Primary Lending Institutions (PLIs). NIMASA remains optimistic that the disbursement process will commence shortly.

‘’The Honourable Minister’s commitment to ensuring the disbursement of the CVFF is consistent with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which seeks to strengthen indigenous capacity, empower local operators and enhance the competitiveness of Nigeria’s maritime industry.

‘’In view of the foregoing, maritime stakeholders, industry operators and members of the public are advised to disregard the misleading reports suggesting that the CVFF has been converted from dollars to naira,’’ the agency said.