Omatseye Insists N52bn CVFF in Fixed Deposit as Shipowners Seek Probe
Eromosele Abiodun
Former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Temisan Omatseye, has insisted that the dollar-denominated Cabotage Vessel Financing Fund (CVFF) was converted to naira during his tenure, adding that the agency had N52 billion in fixed deposit when he left office in December 2010.
Omatseye said the N52 billion comprised both the CVFF and maritime fund, adding that the conversion of the funds to naira was carried out on the directive of the Office of Accountant-General of the Federation (OAGF).
He spoke on Sunday against the backdrop of his recent remarks during the annual summit of the Shipping Correspondents Association of Nigeria (SCAN) that the Accountant-General’s office had advised the conversion of the CVFF into naira.
This is as the Nigeria Shipowners Association (NISA) has called on the Minister of Marine and Blue Economy, Adegboyega Oyetola to clarify the reported conversion of the CVFF from dollars to naira, insisting that the fund should remain denominated in US dollars.
NISA President, Sola Adewumi, said the Federal Ministry of Marine and Blue Economy and the Nigerian Maritime Administration and Safety Agency (NIMASA) should address claims by a former Director-General of the agency, Temisan Omatseye, that the CVFF and other maritime funds were converted to naira during his tenure.
Adewumi questioned the rationale behind converting the fund, arguing that the guidelines governing its administration did not provide for such a conversion.
He noted that shipowners continued to make payments to the relevant authorities in US dollars for shipping-related transactions and other obligations.
According to him, the ministry and NIMASA should provide an official explanation, particularly as Omatseye, having previously headed the agency, was in a position to understand how the fund was managed.
“If you have heard from the former DG that the money has been converted to naira, it is left for the DG and the ministry to counter what the man has said because he was once in that position, so he should know better than people like us,” Adewumi said.
According to Omatseye, the decision to convert the funds was based on the interest rates offered by commercial banks on naira and dollar deposits at the time.
Omatseye said 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 explained that when he assumed office as NIMASA Director-General in 2009, the agency’s funds, including the CVFF and the three per cent surcharge, were held in commercial banks.
“Several banks were appointed as collection banks, from which funds were transferred to designated naira and dollar accounts on the 23rd of every month. By virtue of a memo from the Accountant-General’s office, the agency was directed to change all foreign internally generated revenue, be it three per cent or CVFF, into naira and fix it in naira,” he said.
Omatseye said he was informed that dollar deposits attracted interest rates of between one and two per cent, while naira deposits earned upwards of 15 per cent.
He said the directive therefore made financial sense, adding that the practice continued until he left office.
Meanwhile, NIMASA has denied claims of any conversion stressing that it does not reflect the actual status of the CVFF.
“The revenue streams accruing to the CVFF are denominated in different currencies. Accordingly, 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,” it said.
NIMASA in a statement said Oyetola is working assiduously towards ensuring the imminent disbursement of the Fund to qualified beneficiaries.
“The agency has received applications from eligible beneficiaries, some of whom are currently undergoing the required documentation processes with their preferred Primary Lending Institutions (PLIs). NIMASA remains optimistic that the disbursement process will commence shortly.
“The Honourable Minister’s commitment to ensuring the disbursement of the CVFF is consistent with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which seeks to strengthen indigenous capacity, empower local operators and enhance the competitiveness of Nigeria’s maritime industry.
“In view of the foregoing, maritime stakeholders, industry operators and members of the public are advised to disregard the misleading reports suggesting that the CVFF has been converted from dollars to naira,” it said.