Stakeholders Renew Call for Forensic Audit of NIMASA’s Cabotage Vessel Financing Fund

The Sea Empowerment and Research Centre (SEREC) has renewed its call for an independent forensic audit of the Nigerian Maritime Administration and Safety Agency (NIMASA), citing conflicting accounts of how the Cabotage Vessel Financing Fund (CVFF) has been managed and denominated.

In a bulletin signed by its Head of Research, Eugene Nweke, SEREC said the controversy surrounding the fund has reinforced its earlier concerns about transparency, accountability and the possible erosion of contributions through currency conversion and administrative decisions. The group said recent disclosures had validated its demand for a thorough audit of NIMASA’s financial records from 2004 to date.

The dispute centres on conflicting accounts from past and current NIMASA leadership. Former Director-General Temisan Omatseye said dollar-denominated contributions were converted to naira and placed in fixed deposits during his tenure. The incumbent Director-General, Dr Dayo Mobereola, maintains that the fund remains in dollars with the Central Bank of Nigeria.

SEREC said these conflicting accounts raise questions about the fund’s actual value, location and management. The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act to provide financing support for indigenous shipowners.

The group argued that shipowners, as contributors, deserve documentary evidence showing how much has accrued, where the money is domiciled, the interest generated and the amount currently available for disbursement. It warned that converting dollar contributions to naira exposed the fund to significant foreign exchange losses, given the naira’s depreciation over the years, and could have eroded its real value and undermined its objective of strengthening indigenous shipping capacity.

SEREC stressed that the CVFF is contributors’ money and should not be treated as government largesse. It insisted that no disbursement should take place without a comprehensive forensic audit covering all contributions, currency conversions, investments, accrued interest and administrative transactions from 2004 to date.

Capt. Tajudeen Alao, former President of the National Association of Master Mariners, also called for a comprehensive audit of NIMASA’s accounts from 2004 to date. He said an independent audit would resolve the lingering controversy over the fund’s management and currency denomination, including whether dollar contributions were converted to naira or remained in dollars with the CBN.

Alao expressed concern over the prolonged delay in disbursing the CVFF, saying the failure to make the fund accessible to indigenous shipowners for more than two decades had forced many operators out of the shipping business. He described the situation as detrimental to Nigeria’s maritime industry and efforts to develop indigenous shipping capacity.

He also argued that cargo guarantees and the ship-management capacity of prospective beneficiaries should be part of the eligibility requirements for accessing the fund. According to him, beneficiaries must demonstrate the ability to manage vessels and secure cargo to ensure that loans are effectively utilised and repaid.

“A comprehensive audit would establish the facts, promote transparency and address the lingering questions surrounding the financial status of the CVFF,” Alao said.

Meanwhile, the Nigeria Shipowners Association (NISA) has urged the Minister of Marine and Blue Economy, Adegboyega Oyetola, to explain the reported conversion of the CVFF from dollars to naira, maintaining that the fund should retain its US dollar denomination.

In a statement, NISA President Sola Adewumi said the ministry and NIMASA should respond to Omatseye’s claims that the CVFF and other maritime funds were converted to naira during his tenure. Adewumi questioned the rationale for converting the fund, noting that the guidelines governing its administration did not provide for such a conversion.

“If you have heard from the former DG that the money has been converted to naira, it is left for the DG and the ministry to counter what the man has said because he was once in that position, so he should know better than people like us,” Adewumi said.

He asked why the fund should be converted to naira when shipowners are still required to make payments in dollars.

“Money was not meant to be converted to naira ordinarily because we are paying in dollars. Even as we speak, we still pay them in USD. So, why are they converting it to naira? These are the questions we should ask ourselves,” he said.

Adewumi clarified that he was not directly involved in administering the fund, adding that his position was informed by the guidelines and the information available to him.