N100bn CVFF/ IMO elections: Sack NIMASA's boss now --- Shipowners

Ship Owners Association of Nigeria, SOAN have called for the sacking of the Director General of the Nigerian Maritime Administration and Safety Agency, NIMASA, Dakuku Peterside, over the recent failure of the country to get elected into the category C of the International Maritime Organisation, IMO and refusal to disburse over N100 billion Cabotage Vessel Financing Fund, CVFF.

SOAN at its end of year workshop and dinner with the theme: “Giving Critical Lifeline To The Nigerian Maritime Industry,” said that the Maritime Agency relied on lobbying for the election instead of working for the development of the industry which is the criteria for election at the world maritime body.

President of SOAN, Greg Ogbeifun

President of SOAN, Engr. Greg Ogbeifun, said while the nation pretend that all is well with the nation's its maritime domain in terms of piracy, hostage taking, kidnapping, poor navigational aids, lack of training for seafarers, weak flag administration amongst others, the international maritime community knows better.

This is evident as the International Maritime Bureau's (IMB) annual piracy report 2016 shows that Nigeria recorded the second highest number of actual and attempted pirate attacks in the year after Indonesia, he noted.

Minister of Transportation, Rotimi Amaechi

 He also lamented that the Cabotage fleet in the country has been greatly depleted since the decline in prices of petroleum products that has affected the International Oil Companies, IOC’s with whom they do business.

According to him, “Despite contributing two percent of their contract values to the infamous CVFF, a fund meant to finance and grow the Cabotage fleet but has never financed one single vessel since inception over 10 years ago.

“Most shipowners approached the Maritime Administration who warehouses the CVFF to intervene by refinancing the more expensive commercial bank loans for low interest Cabotage fund. Up till now, there had been no response from the Maritime Administration.

“If the CVFF had been used to intervene in the situation shipowners found themselves in, our tonnage would have grown or at worse been sustained.”

DG NIMASA, Dakuku Peterside

The Minister on the other hand is adamant in his refusal to disburse the finds, “I will not disbursed the CVFF funds” because the shipowners are looking for free money.

The CVFF is a two percent contribution by indigenous shipowners for every contract they execute and it is meant for the development of Cabotage fleet and local shipping capacity.

Another reason for not wanting to disburse the funds the minister said, is because similar lifeline was given to operators in the aviation industry that was not used for the purposes it was collected, nothing further that government does not want to make similar mistake with the CVFF.

He however denial claims that funds in the CVFF has past the N100 billion mark because the previous management of the Nigerian Maritime Administration and Safety Agency, NIMASA, spent a large chunk of the funds on building maritime institutions.

On the minister’s claim that the CVFF does not have as much as N100 billion, Ogbeifun said, “The Chairman House Committee on Maritime Safety, Education and Administration, Mohammed Umar Bago recently in October stated that Nigeria has over N100 billion in the CVFF account.”

The SOAN President further pointed out that even if the amount in the account has been depleted as the minister claims, what is left should be used to support shipowners.

He stressed that unlike the aviation fund which was from government, the CVFF is a contribution from them for the development of shipping capacity and therefore should be disbursed in accordance with the CVFF law.