The Director-General of the Nigerian Maritime Administration and Safety Agency has rejected claims that the Cabotage Vessel Financing Fund was converted from dollars to naira, setting up a dispute with a former holder of the same office who says the conversion was directed and deliberate.
Dr Dayo Mobereola said reports attributed to a former Director-General were incorrect and did not reflect the fund’s actual status.
“There has been no conversion of the dollar-denominated component of the CVFF to naira, contrary to the allegation,” Mobereola said in a statement.
According to NIMASA, revenue streams accruing to the fund are denominated in different currencies, with dollar remittances retained in dollars at the Central Bank of Nigeria while naira contributions stay in the local currency.
The former Director-General, Temisan Omatseye, who served from July 2009 to December 2010, defended the conversion of dollar-denominated funds during his tenure, saying it was carried out on the directive of the Accountant-General of the Federation.
“The agency was directed to convert all foreign-denominated internally generated revenue, including the three per cent surcharge and the CVFF, into naira and place the funds in naira fixed deposits,” he said.
Omatseye said the agency held N52bn in fixed deposits comprising the CVFF and the maritime fund when he left office in December 2010.
He said dollar deposits attracted interest of one to two per cent at the time, while naira deposits earned upwards of 15 per cent, making the directive financially sound, and that the practice continued until he left office.
He nonetheless conceded that NIMASA is better placed to explain how the funds have been managed since the introduction of the Treasury Single Account: “What has been the practice since the advent of TSA is better explained by NIMASA.”
The CVFF was established to provide financial support to indigenous shipowners for vessel acquisition and the development of local shipping capacity.
