Administration of Cabotage Vessel Financing Funds (CVVF) in Nigeria: Issues for Legislative Consideration
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Recently, there has been concerns with the administration of the Cabotage Vessel Financing Fund (CVFF) in Nigeria. Section 44 of the Cabotage Act provides that the fund shall be collected by the National Maritime Authority (NMA) and deposited in commercial banks and administered under guideline that shall be proposed by the Minister and approved by the National Assembly. While the Act provides that the fund shall be collected by the NMA, the NMA has been replaced by Nigerian Maritime Administration and Safety Agency (NIMASA). The NMA is the predecessor of NIMASA. There is therefore need to amend section 44 of the Cabotage Act to replace National Maritime Authority with Nigerian Maritime Administration and Safety Agency. Furthermore, whereas the Act allows for money accruing to the CVVF to be deposited in more than one commercial bank, this may undermine transparency in the management of the Fund. This brief examines the issues underlining the administration of the CVVF in the context of the Cabotage Act. It concludes by highlighting aspects in the Cabotage Act that requires legislative attention in order to ensure transparency and openness in the administration of the Fund.