House Rescinds Decision, Okays Disbursement of $700m Cabotage Vessel Finance Fund

·       Receives COVID-19 report, passes other bills

Udora Orizu in Abuja

The House of Representatives has backed the planned disbursement of $700 million Cabotage Vessel Finance Fund to individuals and companies.

The lawmakers had on May 3rd, while adopting a motion sponsored by Hon. Henry Nwawuba, directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to immediately stop the planned disbursement.

Nwawuba, had expressed concern that since the establishment of the Cabotage Vessel Finance Fund, there have been no reliable data as to the total amount that has so far accrued to the Fund and thus, there is no certainty as to the actual worth of the fund at the moment.

The House thereafter directed its Committee on Nigerian Content Development and Monitoring to interface with Minister of Transportation and the Director-General, NIMASA on how the funds have been applied over the years.

Presenting the Committee’s findings at plenary, yesterday, its Chairman, Hon. Legor Idagbo, said its investigation indicated that due process was followed.

He said they discovered that the total funds of $360 million in the Cabotage Vessel Finance Fund (CVFF) account with the Central Bank of Nigeria (CBN) represents 50 per cent, while the remaining counterpart funds of 50 per cent was from stakeholders and banks which was 15 per cent and 35 per cent respectively. 

He therefore said NIMASA should go ahead with the disbursement in compliance with the extant laws and laid down guidelines for the said disbursement.

The Committee applauded NNPCL for its commitment to awarding the shipping contracts to indigenous companies that have built capacity to the level where they can successfully execute these contracts. 

He said, “The Committee requested the Nigerian Maritime Administration and Safety Agency and the Ministry of Transportation to provide detailed information on the total amount accrued to the Fund and disbursements since inception. “The Committee met with the Minister of Transportation and the Director-General of the Nigerian Maritime Administration and Safety Agency ({NIMASA) on Thursday, 11 May, 2023 to find out about the details concerning the matter.

“After a thorough analysis of the various submissions on the matter coupled with the explanations given by the Ministry and NIMASA, the Committee discovered that due process was followed in the planned disbursement of the Cabotage Vessel Finance Fund.”

Meanwhile, the House of Representatives Ad Hoc Committee on COVID-19, yesterday at plenary laid its report.The committee chaired by Hon. Haruna Mshelia, which was set up by the green chamber to oversee the activities of the federal government against COVID-19, laid its report on the pandemic three years after the panel was set up for the task.

The Speaker, Hon. Femi Gbajabiamila, had on March 19, 2020, inaugurated the committee, with a mandate to coordinate the activities of the House on the disease.

Gbajabiamila, while inaugurating the House committee, had said the panel was set up as part of the resolve by the parliament to constantly work for the best interests of the Nigerians.

The Speaker said, “The 18-man committee we have come to inaugurate reflects the intention of the House of Representatives to engage the executive arm of government in a partnership that serves the best interests of the Nigerian people, as we join hands to confront and conquer the most severe challenge of our lives.”

Also, the House yesterday, passed some bills for third reading. They included: A Bill for an Act to Repeal the Revenue Mobilisation, Allocation and Fiscal Commission Act, Cap. R7 Laws of the Federation of Nigeria, 2004 and Enact the Revenue Mobilisation, Allocation and Fiscal Commission Bill to Grant the Commission Enforcement Powers in the Monitoring of Accruals to and Disbursement of Revenue from the Federation Account and to bring the Act in conformity with the provisions of the 1999 Constitution (as amended) and for Related Matters.’

When the bill becomes law, RMAFC would be empowered to prosecute illegal salaries and allowances in ministries, departments and agencies of the federal and state governments as well as the arms of the governments, including the National Assembly.

The House passed the bill in concurrence with the Senate which earlier passed it.

Another bill passed was: A Bill for an Act to Establish the Real Estate Regulatory Agency of the Federal Capital Territory to Provide Globally Acceptable Standard of Service and Transparent Administration of the Business of Real Estate Development, and Prescribed Minimum Standards for the Conduct of the Business of Real Estate Development in the Federal Capital Territory and for Related Matters.