The Nigerian Maritime Administration and Safety Agency (NIMASA) has confirmed that the long-awaited Cabotage Vessel Financing Fund (CVFF) will be disbursed under an eight-year repayment plan with a single-digit interest rate, marking a key milestone in Nigeria’s maritime industry reforms.
The Director-General of NIMASA, Dr. Dayo Mobereola, made the announcement on Monday during a one-day interactive forum aimed at sensitising maritime stakeholders about the fund’s operational framework. According to him, the fund will be disbursed through the Federal Ministry of Marine and Blue Economy, in collaboration with 12 Primary Lending Institutions (PLIs).
Mobereola said the CVFF facility would come with a two-year moratorium and an eight-year loan tenure, specifically designed to help indigenous shipowners access affordable financing for vessel acquisition and related activities.
He explained that the sensitisation forum was part of efforts to ensure clarity and stakeholder involvement in the rollout of the fund. “We’re working closely with the PLIs to resolve outstanding concerns around insurance, fund security, flexible loan tenures, and minimising service charges,” Mobereola said.
He added that “This disbursement will be transformative for our industry by empowering indigenous shipowners to compete favourably, boost local content in the maritime sector, create employment opportunities for Nigerian seafarers, and strengthen ancillary maritime services.”
The DG also praised President Bola Ahmed Tinubu and the Minister of Marine and Blue Economy, Adegboyega Oyetola, for ensuring the release of the long-delayed fund. The CVFF had been a subject of debate and delays for several years despite being mandated under the Cabotage Act of 2003 to promote the development of local shipping capacity.
To ensure transparency and accountability, Mobereola said NIMASA had put in place a dedicated Secretariat Cabotage Unit, defined clear eligibility criteria, and enlisted the participation of 12 banks as PLIs to manage the fund’s disbursement professionally.
Also speaking at the event, the President of the Nigerian Chamber of Shipping, Aminu Umar, applauded the Tinubu administration and NIMASA for moving forward with the fund. He said the initiative will energise the sector and stimulate indigenous participation in the shipping business.
In the same vein, Temisan Omatseye, a former DG of NIMASA, commended the move, saying it was a long-overdue decision that will go a long way in correcting the structural imbalances in Nigeria’s maritime sector.
