The Nigerian Maritime Administration and Safety Agency (NIMASA) announced on Monday that it will soon begin disbursing the $700 million Cabotage Vessels Financing Fund (CVFF) to indigenous shipowners at a single-digit interest rate. This move is part of the agency’s ongoing efforts to strengthen local ownership of maritime assets and reduce Nigeria’s reliance on foreign vessels.
Dr. Dayo Mobereola, the Director-General of NIMASA, made the announcement during a one-day stakeholders’ forum held in Lagos to discuss the operationalisation of the CVFF. He explained that the fund would serve as a strategic investment rather than a grant, urging prospective applicants to follow the established procedures through partner financial institutions.
“The primary objective of bringing you together today is to formally announce and discuss the imminent disbursement of the CVFF, and to demonstrate the established clear frameworks for transparent, efficient, and impactful fund utilisation that will empower indigenous shipowners,” Mobereola said.
The CVFF was created under the Coastal and Inland Shipping Act of 2003 to provide financial support to indigenous shipowners for vessel acquisition and capacity development. Despite encountering regulatory challenges and issues in the past, Mobereola expressed confidence that under the leadership of President Bola Tinubu and with the support of Minister of Marine and Blue Economy, Gboyega Oyetola, the necessary approvals for disbursement have now been secured.
The disbursement of the fund is expected to significantly boost local content in the maritime sector, create employment opportunities for Nigerian seafarers, and enhance the competitiveness of indigenous shipowners. Mobereola also noted that this initiative would support Nigeria’s broader economic growth by strengthening the nation’s maritime sector.
Jubril Abba, Executive Director of Maritime Labour and Cabotage Services at NIMASA, underscored the importance of the CVFF in reducing Nigeria’s reliance on foreign vessels. He also emphasised that the fund would stimulate domestic maritime commerce and encourage the growth of local shipping companies.
As part of NIMASA’s commitment to empowering local shipowners, Abba called on all stakeholders to collaborate and support the initiative. He also stressed that the growth of Nigeria’s marine and blue economy would contribute significantly to the nation’s GDP, aligning with the government’s vision of fostering sustainable economic development.
