Omatseye: N52bn CVFF Fixed Deposit in Naira, Not Dollars

• Former NIMASA DG Temisan Omatseye insists the N52 billion Cabotage Vessel Financing Fund (CVFF) is held in naira fixed deposits.
• Omatseye alleges the fund was converted from dollars to naira and placed in fixed deposits during Patrick Akpobolokemi's tenure, with generated interest potentially diverted.
• The CVFF, established by the Cabotage Act of 2003, aims to provide financial assistance to indigenous shipowners for vessel acquisition.
• Minister Adegboyega Oyetola announced President Bola Tinubu's approval for the immediate disbursement of the fund.
• Shipowners are calling for a probe into the management of the CVFF amidst these claims of mismanagement.

Omatseye's insistence that the fund was converted to naira and placed in fixed deposits specifically to generate interest, which he alleges was then diverted, raises serious questions about financial transparency and accountability within NIMASA during that period.

Former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Temisan Omatseye, has firmly asserted that the Cabotage Vessel Financing Fund (CVFF), now valued at N52 billion, is currently held in naira-denominated fixed deposit accounts. Omatseye contends that this significant financial asset, originally established in US dollars, underwent a conversion to the local currency and was subsequently placed into fixed deposits. He attributes these actions to the tenure of his predecessor, Patrick Akpobolokemi, during his time as NIMASA Director-General.

This revelation comes at a pivotal moment, as the Minister of Marine and Blue Economy, Adegboyega Oyetola, recently announced a major development regarding the fund. Minister Oyetola confirmed that President Bola Tinubu has given his explicit approval for the immediate disbursement of the CVFF to indigenous shipowners. The fund's primary objective has always been to provide crucial financial assistance, enabling local operators to acquire essential vessels and bolster their participation in Nigeria's maritime sector.

The Cabotage Vessel Financing Fund (CVFF) was established as a critical component of the Cabotage Act of 2003, a legislative framework designed to promote indigenous participation in Nigeria's coastal and inland shipping trade. This act mandates that the fund be utilized to provide financial assistance to local operators, thereby fostering the growth and development of the nation's maritime industry.

Its financial sustenance comes from a 2% surcharge levied on all contracts executed within Nigeria's coastal and inland waters, creating a dedicated pool of capital intended to provide financial assistance to local operators for vessel acquisition. This mechanism ensures a continuous inflow of resources specifically earmarked for the empowerment of indigenous shipowners.

The allegations surrounding the historical management of the CVFF have ignited calls for a comprehensive investigation from various industry stakeholders, including the Nigerian Shipowners Association (NISA). Omatseye's specific claim that the fund was converted to naira and then strategically placed in fixed deposits to generate interest, which he further alleges was subsequently diverted, raises profound questions about financial transparency and accountability within NIMASA during the period in question. This situation highlights potential systemic vulnerabilities in the oversight of public funds.

President Tinubu's directive for the immediate disbursement of the N52 billion fund, set against the backdrop of these serious historical claims of potential mismanagement and diversion, underscores a critical need for enhanced scrutiny and robust oversight. As the CVFF finally becomes accessible to its intended beneficiaries, the maritime industry and anti-corruption advocates will be closely watching to ensure that past alleged irregularities are addressed and that the fund's future administration is conducted with utmost integrity and transparency. The outcome of any potential probe could significantly reshape financial governance within Nigeria's maritime sector.

Lawyers advising clients in Nigeria's maritime sector or those involved in public finance and anti-corruption should monitor the outcome of the requested probe into the N52bn CVFF. This development highlights potential compliance risks related to the management and transparency of public funds, which could lead to regulatory actions, litigation, or changes in financial oversight within the sector.

Source: Original reporting on Nigerian maritime finance.