Omatseye Reveals Naira Conversion Impact on $350M CVFF

Temisan Omatseye, former director-general of the Cabotage Vessel Financing Fund, stated that the fund, originally valued at $350 million, was converted into naira instead of being held in dollars. This decision exposed the fund to the depreciation of the naira, significantly affecting its dollar-equivalent value.

Omatseye, who chaired the 2026 Annual Summit of the Shipping Correspondents Association of Nigeria in Apapa, Lagos, explained that the conversion was motivated by the higher interest rates available in the domestic market, which ranged from 23 to 25 percent, compared to one to two percent for dollar deposits. He highlighted the importance of transparency in reporting the fund's financial position, including accumulated amounts, interest earned, and exchange rate implications.

Omatseye warned that the original valuation of $350 million could not be assumed to remain unchanged due to the local currency holding strategy.