The House said it observed that there has been no reliable data on the inflow into the fund since the Act came into being in 2003.
The House of Representatives has asked the federal government to suspend the planned disbursement of the $700 million in the Cabotage Vessel Finance Fund to Nigerian shippers.
The House, in a motion moved by Henry Nwawuba (APGA, Imo) on Tuesday during plenary, called for the suspension pending the outcome of House investigation.
The Cabotage Vessel Finance Fund was established by the Coastal and Inland Shipping (Cabotage) Act, 2003 to promote the development of indigenous ship acquisition capacity by providing financial assistance to Nigerian operators in domestic coastal shipping.
The Cabotage Act provides that two per cent of the contract sum performed by any vessel engaged in Cabotage trade shall be paid into the CVFF for the development of domestic coastal shippers.
In his motion, Mr Nwawuba informed his colleagues that the federal government is planning to disburse $700 million from the funds to Nigerian shippers but that the lawmakers have no details of the total accruals into the fund.
He stated that there has been no reliable data on the inflow into the fund since the Act came into being in 2003.
The lawmaker added that "the matrix, procedure and condition of the disbursement of the Cabotage Vessel Finance Fund are obscure and not transparent, and not wholly in accordance with the Coastal and Inland Shipping (Cabotage) Act, 2003."
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Mr Nwawuba also alleged that the Ministry of Transportation and NIMASA have misappropriated the funds.
"The Ministry of Transportation in collaboration with the Nigerian Maritime Administration and Safety Agency (NIMASA) has misappropriated the funds designated to promote the development of indigenous ship acquisition capacity, and the Act has not achieved its objectives," he said.
Consequently, the House summoned the Minister of Transportation, Mu'azu Sambo, and the Director General of NIMASA, Bashir Jimoh, to appear before its Committee on Local Content.
The House also directed the committee to immediately commence investigations into the Cabotage Vessel Finance Fund to determine all monies that have accrued to the Fund since its establishment in the year 2003, and report to the House within 14 days.
In addition, it directed the committee to engage an external auditor to audit all contracts that have been entered into in the Cabotage regime and report to the House within 14 days.
Members voted in support of the motion when it was put to vote by the Speaker Femi Gbajabiamila.
