The Nigerian House of Representatives has ordered the suspension of the planned distribution of a $700 million Cabotage vessel financing fund, citing concerns over mismanagement by the Nigerian Maritime Administration and Safety Agency (NIMASA).
The fund was established by the Coastal and Inland Shipping (Cabotage) Act in 2003 to support the development of Nigeria’s indigenous ship acquisition capacity by providing financial assistance to local operators in the domestic coastal shipping industry.
During a plenary session in Abuja, Rep. Henry Nwawuba raised concerns over the lack of transparency and accountability regarding the fund’s management, noting the absence of reliable data on its total worth and beneficiaries.
The House has directed the Committee on Local Content to engage an external auditor to investigate all cabotage regime contracts and report back within 14 days.
Additionally, NIMASA has been urged to provide an audited statement of account on all the fund’s accrued funds within seven days.
The committee is also tasked with conducting an immediate investigation into the Cabotage Vessel Financing Fund to determine all funds that have accrued to the initiative since its inception in 2003.
The House has asked the Minister of State for Transport and NIMASA Director-General to report to the House Committee on Local Content on the state of the fund and how it has been utilized over the past two decades.
