NIMASA Denies Converting Dollar-Denominated CVFF to Naira

By Adedapo Adesanya

The Nigerian Maritime Administration and Safety Agency (NIMASA) has reacted to claims that funds under the Cabotage Vessel Financing Fund (CVFF) are retained in the currencies in which they were remitted.

In a statement by the Director General of NIMASA, Mr Dayo Mobereola, the agency said its management was aware of media reports alleging that the CVFF was no longer being held in United States Dollars, insisting that the reports did not accurately reflect the status of the fund.

The reports attributed this claim to a former Director-General of NIMASA, Mr Temisan Omatseye, who was said to have alleged that the conversion was undertaken to enable the Fund to earn higher interest rates.

Mr Omatseye, who was DG from July 2009 to December 2010, stated that NIMASA had N52 billion in fixed deposits when he left office almost 16 years ago.

He explained that the N52 billion comprised both the CVFF and the maritime fund, adding that the conversion of Dollar-denominated funds into Naira was carried out on the directive of the Accountant-General of the Federation.

In a statement on Sunday, Mr Omatseye stated this against the backdrop of his recent remarks that the Accountant-General’s office had advised the conversion of the CVFF into naira.

According to him, “the decision to convert the funds was based on the interest rates offered by commercial banks on Naira and Dollar deposits at the time.”

But Mr Mobereola said the claim was incorrect and did not reflect the actual status of the CVFF.

“The attention of the management of NIMASA has been drawn to reports circulating in some sections of the media alleging that the CVFF has been converted to naira and is no longer being held in United States dollars. The reports attributed this claim to a former Director-General of NIMASA, Mr Omatseye, who reportedly alleged that the conversion was undertaken to enable the Fund to earn higher interest rates. For the avoidance of doubt, this claim is incorrect and does not reflect the actual status of the CVFF,” Mr Mobereola said.

According to him, the revenue streams accruing to the CVFF are denominated in different currencies, adding that funds remitted in United States dollars are retained in Dollars with the Central Bank of Nigeria (CBN), while contributions remitted in naira are retained in the local currency.

“There has been no conversion of the dollar-denominated component of the CVFF to naira, contrary to the allegation,” he said.

Meanwhile, the Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, said the federal government is working assiduously towards ensuring the imminent disbursement of the Fund to qualified beneficiaries.

The organisation has received applications from eligible beneficiaries, some of whom are currently undergoing the required documentation processes with their preferred Primary Lending Institutions (PLIs).