The House of Representatives has backed the planned disbursement of $700 million Cabotage Vessel Finance Fund (CVFF), following the report of the House Committee on Nigerian Content Development and Monitoring.
Legor Idagbo, the chairman of the Committee said while briefing newsmen at the National Assembly in Abuja on Thursday.
He said in view of the findings during the investigation, the Committee made the recommendations that NIMASA should go ahead with the disbursement of CVFF.
This, according to him, is in compliance with the extant laws and laid down guidelines for the said disbursement.
He said it was also to ensure the disbursement did not violate any of the extant laws made by the National Assembly.
He said the following persons were nominated to supervise the disbursement process: Rep Idagbo as the Chairman, Rep. Henry Nwawuba and Mrs Kehinde Olaiya, the Committee Clerk
He said an Audit firm, Stratford hill and Co, was appointed by the committee as the coordinating enforcement auditor for the CVFF.
He said the committee applauded NNPC for its commitment to awarding the shipping contracts to indigenous companies that had built capacity to the level where they could successfully execute the contracts.
He said the committee further noted that there was lack of capacity amongst indigenous and Domestic Coastal operators in Nigeria.
He said this was the reason NNPC still awarded contracts to foreign shipping companies in contravention of the Cabotage and Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
He said some of the awards had been previously investigated by the committee which led to their cancellation.
“It was also discovered that the total funds of $360m in the CVFF account with the Central Bank of Nigeria (CBN) represent 50 per cent
He said the remaining counterpart funds of 50 per cent came from stakeholders and Banks which is 15 per cent and 35 per cent respectively.
The committee notes that CVFF is a fund that was set up in 2003 by the Coastal and Inland Shipping Act.
The Fund was established for the purpose of developing indigenous ship acquisition capacity, and to provide financial assistance to indigenous shipping operators.
