From left: Head, Corporate Communications, Nigerian Maritime Administration and Safety Agency, NIMASA, Philip Kyanet, Executive Director, Maritime Labour and Cabotage Services, Engr. Victor Ochei, Director General of the agency, Dr. Bashir Jamoh and Special Assistant to the DG on communications and strategy, Ubong Essien during a media conference in Lagos, Friday.

Strong indications emerged that many International Oil Companies IOCs operating in Nigeria are frustrating the efforts of the Federal Government to develop indigenous shipping business in the country, as many of them have refused to pay the two per cent surcharge into the Cabotage Vessel Financing Fund CVFF.

The Coastal and Inland Shipping Cabotage Act 2003 requires every shipping line trading within the coastal region to pay two per cent of the value of every contract awarded to it into the CVFF coffers, designed to enable indigenous shipping operators acquire ships as part of efforts to develop indigenous shipping business and curtail foreign domination.

Director General of the Nigerian Maritime Administration and Safety Agency NIMASA, Dr Bashir Jamoh, who presented his management’s one-year scorecard to newsmen in Lagos Friday, shortly after the Day of the Seafarers celebration in Lagos, disclosed that a total of N136.5billion has accumulated into the fund, as plans are underway for the disbursement.

It was gathered that the fund, which is made up of two components; the naira and the dollar, has a total of N136.5billion comprising N32billion and $209million respectively in both accounts, bringing to a gross total of N136.5billion as at March, 2020.

The DG however regretted that many IOCs operating in the country are yet to remit the two per cent statutory surcharge to the fund, a development that forestalls the growth of the fund and by implication, the growth and development of indigenous shipping business in Nigeria.

The DG, who was silent on measures being put in place to recover the money, disclosed that plans are underway to commence the process of disbursement, saying that a total of 11 indigenous shipping firms have already been shortlisted as the potential beneficiaries of the first phase of the fund.

He also disclosed that four Primary Lending Institutions PLIs (four banks), which would midwife the process of the disbursement have already been appointed, and are expected to come up with guidelines on the disbursement.

Business and Transport checks also revealed that following the release of the guidelines by the four PLIs, the prospective indigenous shipping companies would be expected to come up with the specification of the vessels they need, after which the specified PLI, which would act as an intermediary bank would now release the money to the shipyard, which would commence the building of the vessel.

But the Executive Director of the agency in charge of Cabotage Services, the department that directly supervises the fund, Engr. Victor Ochei, however clarified that there might not be need for the PLIs with the emergence of the Treasury Single Account TSA regime currently being operated by the government.

He assured that efforts would be made to ensure a seamless disbursement of the funds, using the TSA model, which would ultimately lead to the acquisition of the vessels as required by the law.

Recall that the Minister of Transport, Rotimi Amaechi had in 2019 set up a committee headed by the immediate past DG of the agency, Dr Dakuku Peterside to develop guidelines for the distribution of the fund.

Other members of the committee also included chairman, of Nigerian Ship Owners Forum, Mrs. Margaret Orakwusi; Vice chairman, C&I Leasing, Emeka Ndu; then Managing Director, Starz Marine, Engr. Greg Ogbeifun; and President, Nigerian Shipowners Association NISA, Aminu Umar, among others.

The Minister had also directed that only indigenous shipping firms, which are contributors to the fund, would be qualified to access the facility. While assuring of government’s commitment to the disbursement of the fund, however said that the old guidelines might not work in the current dispensation, which also informed the decision to set up a new committee.