In a move poised to reshape Nigeria’s maritime industry, the Nigerian Maritime Administration and Safety Agency (NIMASA) has selected 12 Primary Lending Institutions (PLIs) to commence the disbursement of the long-awaited Cabotage Vessels Financing Fund (CVFF), offering loans at a single-digit interest rate.
The Director-General of NIMASA, Dr. Dayo Mobereola, announced the development during a virtual stakeholders’ meeting held in Lagos on Monday. He described the initiative as a strategic step towards transforming the sector.
Mobereola highlighted that the approval to operationalise the CVFF was secured through the commitment of President Bola Tinubu and the Minister of Marine and Blue Economy, Mr. Adegboyega Oyetola.
He said, “This demonstrates the establishment of clear frameworks for transparent, efficient, and impactful fund utilisation, directly empowering our indigenous shipowners.”
He explained that the CVFF, created under the Coastal and Inland Shipping Act of 2003, was designed to support vessel acquisition and boost local capacity for Nigerian maritime businesses. The fund, despite years of delay, is now set to usher in a new era for the sector.
“Despite nearly two decades of regulatory hurdles and past challenges, we are now at the cusp of a new era,” Mobereola stated.
He assured stakeholders of close monitoring to ensure the fund achieves its core objectives of driving growth and capacity development in the industry. The fund’s implementation, he said, would be guided by a transparent framework, with a dedicated Cabotage Unit, defined eligibility criteria, and partnerships with the 12 selected banks.
“The CVFF represents not just the end of a long wait but the beginning of a new era for Nigerian shipping,” Mobereola added, stressing that the facility is a loan and not a grant.
He noted that the programme is also expected to create jobs for Nigerian seafarers and boost ancillary maritime services, contributing significantly to the blue economy.
Executive Director of Cabotage Services at NIMASA, Mr. Jubril Abba, described the fund as a catalyst for renewed activity in the maritime sector. He commended President Tinubu and Minister Oyetola for their decisive roles in moving the process forward.
NIMASA’s Legal Consultant on CVFF, Mr. Adedoyin Afun, emphasised that the Cabotage Act is designed strictly for Nigerian citizens and aims to encourage the development of domestic shipping.
He noted, “Vessels must be owned, built, operated, and managed by Nigerians,” adding that the Act mandates that vessels eligible for funding must have been acquired within 12 months of applying for the loan.
Financial Consultant for the fund, Mr. Yusuf Buhari, explained that applicants are required to make contributions, while NIMASA would provide up to 50 percent of the funding—capped at 25 million dollars—with no direct cash disbursement.
He said the loans would have a tenure of eight years, and disbursements would be denominated in U.S. dollars to meet international standards.
The 12 banks participating in the scheme include First Bank, Fidelity Bank, Zenith Bank, United Bank for Africa (UBA), Jaiz Bank, and Lottos Bank, among others.
Zenith Bank’s Managing Director, Mr. Aburime Ehimare, during his contribution, advocated for the establishment of a post-disbursement monitoring group to track the programme’s progress. He also called for a security-sharing formula to safeguard the vessels.
President of the Nigeria Chamber of Shipping (NCS), Mr. Aminu Umar, urged NIMASA to publish clear terms and conditions for disbursement to guide potential beneficiaries.
Meanwhile, Safety Engineer Mr. Olu Aladelusi recommended that insurance policies and repayment terms be properly factored into the process.
The session concluded with a technical demonstration of the loan application process for the benefit of stakeholders.
