By Felix Iwebunor
FORMER Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Temisan Omatseye, has defended the conversion of dollar-denominated Cabotage Vessel Financing Fund (CVFF) and other receipts into naira during his tenure, saying the federal government found it more profitable at the interest rate.
His clarification followed a statement by the NIMASA Director-General/Chief Executive Officer, Dr Dayo Mobereola, stating the claim was “incorrect and does not reflect the actual status of the CVFF,” and that “the revenue streams accruing to the CVFF are denominated in different currencies.”
However, restating his remarks yesterday, Omatseye insisted that the Accountant-General of the Federation directed the conversion, adding that NIMASA had N52 billion in fixed deposit when he left office in December 2010.
He disclosed that the N52 billion comprised both the CVFF and the Maritime Fund, adding that the decision to convert the funds was based on interest rate disparities from commercial banks, which favoured the naira against dollar deposits at the time
Consequently, the agency was directed to convert all foreign-denominated internally generated revenue, including the 3 per cent surcharge and the CVFF, into naira, and place the funds in naira fixed deposits, Omatseye stated.
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, while several banks were appointed as collection banks, from which funds were transferred to designated naira and dollar accounts on the 23rd of every month.
According to him, “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.”
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. The directive made financial sense, he noted, adding that the practice continued till he left office.
Omatseye, who first explained what transpired during his tenure at the 2026 Summit of the Shipping Correspondents’ Association of Nigeria (SCAN) in Lagos last Thursday, maintained that all dollar funds received as CVFF were converted to naira.
However, having left office on December 13, 2010, he insisted that “the practice since the advent of TSA is better explained by NIMASA. In light of that, I stand fully by my statement that during my tenure, all dollar funds received as CVFF were converted into naira.”
The CVFF was established to provide financial support to Nigerian indigenous shipowners for the acquisition of vessels and development of local shipping capacity.
