CVFF Fund not converted to Naira – NIMASA

The Nigerian Maritime Administration and Safety Agency (NIMASA) has emphasised that the Cabotage Vessel Financing Fund (CVFF) is converted to Naira as the fund is still held in the United States dollars.

NIMASA made this emphasis against the media reports claiming that the CVFF had been converted to Naira as 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.

NIMASA debunked the reports in a statement by its Head of Public Affairs, Mr. Edward Osagie.

“For the avoidance of doubt, this claim is incorrect and 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,” said the statement.

It informed that the Minister of Marine and Blue Economy, His Excellency, Adegboyega Oyetola, CON, 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 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,” according to the statement.