By Blessing Elo Oghene
Maritime stakeholders have called for an independent audit of the Nigerian Maritime Administration and Safety Agency (NIMASA) accounts from 2004 to date to determine the actual financial status of the $360 million Cabotage Vessel Financing Fund (CVFF).
The demand follows conflicting claims by a former Director-General of NIMASA, Temisan Omatseye, and the incumbent, Dr Dayo Mobereola, over whether dollar-denominated contributions to the fund were converted into naira or retained in United States dollars.
While Omatseye maintained that the dollar contributions were converted into naira and invested in fixed deposits during his tenure, Mobereola insisted that the dollar component remained in dollars with the Central Bank of Nigeria (CBN).
Former President of the National Association of Master Mariners (NAMM), Capt. Tajudeen Alao, said an independent audit would establish the actual amount in the fund and clarify how contributions had been managed over the years.
Alao argued that stakeholders were entitled to demand an audit because the fund was generated through statutory contributions from maritime operators and was established to support indigenous shipowners.
He noted that although Omatseye had explained that the dollar contributions were converted into naira during his administration, the current NIMASA management maintained that the funds remained in dollars.
He urged the agency to provide documentary evidence supporting its position or allow an independent audit to resolve the disagreement.
According to him, the audit should cover the fund’s financial history, including the amounts collected, the banks that managed the deposits and the companies expected to benefit from the eventual disbursement.
Alao also cautioned against deducting administrative expenses and processing fees from the contributions, insisting that such costs should be accounted for separately.
He lamented that the prolonged delay in disbursing the fund had frustrated indigenous shipowners, forcing some out of the shipping business.
However, he stressed that prospective beneficiaries must demonstrate their capacity to manage vessels, secure cargo and repay loans obtained through the facility.
He added that cargo guarantees and ship-management capacity should form part of the eligibility requirements, while the equity contribution requirement could be reviewed to accommodate more Nigerian shipowners.
Omatseye, who served as NIMASA Director-General between 2009 and 2010, had defended the conversion of dollar-denominated internally generated revenue, including the three per cent surcharge and CVFF contributions, into naira.
He said the decision followed a directive from the Accountant-General of the Federation, based on the higher interest rates offered by commercial banks on naira deposits at the time.
According to him, dollar deposits attracted interest rates of between one and two per cent, while naira deposits offered returns of more than 15 per cent, making the conversion financially attractive.
Omatseye explained that when he assumed office in 2009, NIMASA’s funds, including the CVFF and the three per cent surcharge, were held in commercial banks, with several banks appointed as collection banks.
He said the collections were subsequently transferred into designated naira and dollar accounts on the 23rd of every month.
The former director-general maintained that all dollar-denominated CVFF contributions received during his tenure were converted into naira in line with the directive.
However, he said the agency was better positioned to explain how the fund had been managed following the introduction of the Treasury Single Account (TSA).
Omatseye also disclosed that as of December 13, 2010, when he left office, NIMASA had N52 billion in fixed deposits comprising the CVFF and the Maritime Fund.
In response, Mobereola dismissed reports that the dollar-denominated component of the CVFF had been converted into naira, describing the claim as incorrect.
He explained that the fund received contributions in different currencies, with dollar payments retained in dollars with the CBN and naira contributions maintained in the local currency.
The NIMASA director-general insisted that the dollar-denominated component had not been converted into naira.
Meanwhile, the Minister of Marine and Blue Economy, Adegboyega Oyetola, has reaffirmed the Federal Government’s commitment to accelerating the disbursement of the fund to qualified indigenous shipowners.
Oyetola, who was represented by the ministry’s Director of Press, Anastasia Ogbonna, said he had directed NIMASA to commence the disbursement process for eligible beneficiaries.
He said the government was committed to building a competitive maritime sector that would enable Nigerian entrepreneurs to participate meaningfully in domestic and international shipping.
The minister identified access to long-term financing at commercially sustainable rates as a major challenge facing indigenous shipowners, noting that vessel acquisition required substantial capital.
He added that high borrowing costs, collateral requirements and lengthy repayment periods placed local operators at a disadvantage.
Oyetola said the government had taken steps to operationalise the CVFF, established under the Coastal and Inland Shipping (Cabotage) Act 2003 to support indigenous vessel ownership.
He disclosed that a dedicated application portal was launched in January 2026 to promote transparency and efficiency in the application process, while the number of approved Primary Lending Institutions (PLIs) was increased from five to 12.
He added that NIMASA had been directed to work with the approved lending institutions to accelerate the assessment of applications and disbursement to qualified beneficiaries.
The minister, however, stressed that the fund must be managed with transparency, due diligence and prudent risk management, describing it as a revolving facility whose sustainability depended on responsible borrowing and repayment.
He urged financial institutions to develop financing products suited to the realities of the maritime industry and called on shipowners to embrace sound corporate governance, proper financial reporting and disciplined repayment practices.
Oyetola also said the government was exploring a commercially driven national shipping line initiative based on private capital, professional management and strategic partnerships to complement indigenous operators and expand Nigeria’s shipping capacity.
The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act to provide financial support for Nigerian indigenous shipowners to acquire vessels and strengthen local shipping capacity.
Despite more than two decades of contributions by maritime operators, the fund has yet to be disbursed to beneficiaries, raising concerns about its management and the prolonged delay in making it accessible to indigenous operators
