The African Shipowners Association has said that the disbursement of the Cabotage Vessels Finance Fund (CVFF) at a single-digit interest rate would bring massive growth opportunities for Nigeria’s maritime industry.
In a statement on Sunday, the President of the association, Capt. Ladi Olubowale, said the move would help boost local content, build capacity among Nigerians, and position the country as a leading maritime nation in Africa.
The Federal Government had last week ordered the Nigerian Maritime Administration and Safety Agency (NIMASA) to start the process of disbursing the long-awaited fund, a move that has been widely welcomed by stakeholders in the industry.
Olubowale praised the decision, saying the participation of Nigerian banks in the disbursement process would help promote transparency and eliminate the problem of dubious borrowers.
He explained that disbursing the CVFF would unlock several opportunities for Nigerians to own ships and trade competitively in Nigeria’s coastal waters and other parts of Africa. According to him, these areas are currently dominated by foreign vessels.
“This disbursement would unlock a lot of things. Nigerians would own ships and create more opportunities for Nigerian-flagged vessels to trade and compete,” Olubowale said.
He specifically commended the Minister of Marine and Blue Economy, Adegboyega Oyetola, for directing NIMASA to commence the disbursement process. He said this action showed that the current administration is serious about building Nigeria’s maritime sector.
Olubowale also pointed out that the move would complement the efforts of the Nigerian National Petroleum Company Limited (NNPCL) in developing the downstream and upstream sectors of the country’s petroleum industry.
Giving examples from other countries, Olubowale said developed nations like Japan, China, and Indonesia have established export funds for ship development and made banks key players in financing ships.
He noted that many banks in Nigeria do not currently have dedicated desks for maritime operations. However, with their involvement in the CVFF, maritime desks would now be created in banks, improving access to funding for the sector.
He stressed that the banks’ involvement is necessary to avoid a situation where the funds would be treated like free money.
According to him, following international best practices is crucial. He said that all processes and conditions must be properly met, and the presence of banks would ensure thorough checks and scrutiny of all those applying for the fund.
“CVFF is a big opportunity for Nigerians to own ships. But we must make sure all conditions are met. With banks involved, there will be serious scrutiny, and we can avoid past mistakes,” Olubowale added.
Olubowale, who is also the Managing Director of Seamate Maritime Integrated Services Limited, said that while the disbursement of the fund is an important first step, much more needs to be done to ensure that the process is smooth and effective.
He emphasized that readiness, execution, and full implementation must go hand-in-hand to achieve the desired results.
Speaking about the African Shipowners Association, Olubowale said that its members are companies that own and operate ships not only within Nigeria but also engage in intra-African trade.
He explained that all members are licensed by NIMASA, and their vessels are certified according to International Maritime Organisation regulations and Classification Society standards.
Olubowale added that the association has a strong database of its members, including information about where cargo operations are taking place, backed by extensive studies and advocacy efforts to support trade activities across Africa.
