NASS okays trust fund for Navy, maritime security

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The National Assembly has empowered the Nigerian Navy (NN), to establish a trust fund, to be known as Cabotage Vessel Financing Fund.

The National Assembly also established the Maritime Security Operation Coordinating Board.

The Fund is meant to promote the development of indigenous ship acquisition, ship building, ship repair and capacity development of providing financial assistance to Nigerian operators in the coastal and inland commercial activities.

This followed the adoption of the House of Representatives Committee on Maritime Safety, Education and Administration’s report on the amendment bill to the Act establishing the Maritime Operations Coordinating Board.

The bill stipulates that five percent of the fund shall be earmarked and applied to the Maritime Security Fund for maritime safety and security.

The House of Representatives Committee on Maritime had recommended that the board should establish and maintain a fund which shall be provided by the federal government from time to time, while one percent of funds derived by Maritime Fund accruing to the Nigerian Maritime Administration and Safety Agency (NIMASA) under the NIMASA Act.

Also, proceeds of sales, by auction of forfeited vessels or goods, gifts, loans, aids and such other assets that may from time to time specifically accrue to the Maritime Security Fund.

The recommendation was passed and has received concurrence of the Senate.

The House had in a landmark move, passed an amendment to the Act establishing the Maritime Operations Coordinating Board, to allow the Navy access one percent of the Maritime Fund, to better address its funding challenges.

The amendment reconstitutes the board and includes the navy as a member.

The Chairman of the Committee on Maritime Mohammed Bago (APC, Niger), presenting the report, said the navy would now be able to enhance its capacity to better police the Maritime environment and protect the Nigeria’s maritime territorial integrity.

According to Bago, the amendment became necessary in the face of dwindling budgetary allocations to the Navy, and the urgent need to properly funded.

He said: “The passage of this amendment is a sign of our commitment, working with the House Committee on Maritime Safety, Education and Administration, to ensure better funding for the navy, considering its economic benefits to securing Nigeria’s waterways and make the country more resilient to internal and external aggression.”

Dasuki said the proportion of the total allocation to the Navy, to the national budget in 2015, was 1.73 percent, but dropped to 1.41 percent in 2016, 1.25 percent in 2017 and further to 1.11 percent in the 2018 appropriation bill.

“In 2017, out of the over N26b allocated to the Navy’s capital projects, only about N15b was released. For overhead, over N4 billion was appropriated and N2.3b was released.

“This is unacceptable. For instance, seven patrol vessels on 24 hour surveillance for 30 days will consume diesel worth N1b,” he said.


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