In order to enhance the financial and operational capacity of indigenous shipping operators, the Federal Government of Nigeria signed the Coastal and Inland Shipping (Cabotage) Act 2003 which established the Cabotage Vessel Financing Fund (CVFF)
The CVFF is a 2% contributory fund paid by operators within the Nigerian coastal and inland shipping domain.
Even though enacted in 2003, the Cabotage Act came into operations in 2004, hence the CVFF is in its 21st year. The fund has accrued into a huge amount and it is domiciled with the Central Bank of Nigeria (CBN).
Sadly, contrary to the enabling Act, and the guidelines, the CVFF which was created as a pool of funds for indigenous operators in Nigeria, has been untouchable.
It is now routine that every regime, through either the DG of Nigerian Maritime Administration and Safety Agency (NIMASA) or the Minister in charge, must give assurances. The cliché is – “the CVFF will soon be disbursed”.
Since the tenure of Mr Ferdinand Agu (now deceased) as DG, NIMASA, up till now that Dr Dayo Mobereola is in charge, the story has not changed. There is apathy in the Nigerian maritime industry, many see the CVFF and promises of its disbursement as deceitful…. like Ponzi!
Just last week, the media was awash again with news that the Federal Government has reaffirmed the commitment of President Bola Ahmed Tinubu’s administration to the disbursement of the CVFF.
Apparently, pre-arranged for maximum media effect, the Director-General of NIMASA, Dr. Dayo Mobereola, paid a visit to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun. It was during the visit that the assurance was given and as required, it was thrown at the media to feast on, and stakeholders to celebrate.
Instructively at the meeting, the DG of NIMASA affirmed that the CVFF disbursement is a key performance indicator (KPI) for the agency in 2025. He said it has the endorsement of the Minister of Marine and Blue Economy. If it’s a KPI, then, it is important to NIMASA to accomplish.
What that statement implies is that CVFF as a KPI ought to be disbursed before the end of 2025. But the follow-up statement gives the impression that maritime industry stakeholders, especially ship owners are being taken for a ride again.
In the words of the DG, the minister has “directed us to engage with the Minister of Finance to resolve all technicalities and establish modalities to fast-track the disbursement of the CVFF to beneficiaries. This administration is committed to unlocking the sector’s full potential”. Modalities and technicalities again!
Since 2004, the non-disbursement of CVFF has been blamed on technicalities and modalities.
It is becoming apparent that ship owners no longer consider any statement on the CVFF disbursement as a serious one; they see such statements as mere reactions to keep hope alive.
One of such is the public notice issued by NIMASA (as recent as) in late 2024. NIMASA had invited Deposit Money Banks (DMBs) and Development Financial Institutions (DFIs), both local and foreign, to apply for accreditation as PLIs for the CVFF.
The notice reignited conversations on the fund. Reacting to the notice, ship owners had described the agency’s approach as a repetitive cycle of unfulfilled promises and propaganda.
Sola Olatunji, a shipowner, described the CVFF saga as “entertainment” rather than meaningful progress. According to him, “for over 20 years, we’ve heard the same rhetoric. They organize seminars, make sweet speeches, and promise disbursement, but nothing happens. This is a motion without movement.”
President of Ship Owners Association of Nigeria (SOAN), Sonny Eja, echoed Olatunji’s sentiments, describing NIMASA’s latest move as another round of unproductive discussions. “It’s almost like a broken record,” he said.
Yet another ship owner told us last week after reading the statement credited to the minister: “I don’t think there is any news about CVFF disbursement that will excite any ship owner any longer”.
