Don't Miss


Home   >   Goverment   >   NIMASA: Reps to probe N40bn Cabotage fund lodged in commercial banks

NIMASA: Reps to probe N40bn Cabotage fund lodged in commercial banks

By on May 9, 2013

House of Representatives today, Wednesday, unveiled plan to probe over N40 billion Cabotage Vessel Financing Fund (CVFF ), allegedly trapped in some commercial banks.

The adhoc committee was mandated to determine the total amount that had been generated under the fund since inception and identify the banks warehousing these funds and their level of participation in the scheme.

The CVFF was established by the Cabotage Act 2003, to promote the development of indigenous ship acquisition capacity by providing financial assistance to Nigerian operators in domestic coastal shipping.

The resolution was passed after robust debate on the motion sponsored by Hassan Saleh, who alleged that over N40 billion was been trapped in some designated commercial banks instead of been utilised for the purpose they were established.

Saleh who expressed concern over the spate of corruption in the management of the fund, argued that the actions of the banks and Nigerian Maritime Administration and Security Agency (NIMASA) had defeated the laudable objectives of the fund.

He maintained that if the maritime sector was fully developed, it had the potentials to generate much revenue as the oil sector, adding that over 90 percent of the country’s international trade was being carried out on the sea.

The legislator stressed that only 20 active Nigerian registered vessels were handling the country’s external trade, while the remaining percentages are owned by foreigners.

While expressing support for the probe, Patrick Ikhariale, chairman House Committee on Power explained that the motion before the House would provide the opportunity for the House to examine the activities of NIMASA

He noted that if the economic sector was well managed, the management of other sectors would not pose any problem.

On his part, Kingsley Chinda urged the House to allow the relevant committee to embark on an oversight to ascertain the position of the funds, saying “this motion calls for the House to exercise its oversight function on the agency,” he said.

Also speaking, Friday Itulah noted that Nigerians’ participation in the cabotage industry was not satisfactory.

He said that there was a need for Nigerians to look inward to develop the economy.