· In 7 years, FG ordered disbursement 10 times, nothing was released
· Ship owners pessimistic about fresh August disbursement date
After over more than two decades of enactment and repeated assurances from successive administrations, the Federal Government has again assured shipowners of disbursement of the Cabotage Vessel Financing Fund (CVFF).
What has however shocked maritime stakeholders is the number of official assurances (at least 10 different times in seven years) that the fund would be released, with only one resulting in any concrete step towards implementation, and still, no actual disbursement has been made to distraught indigenous ship owners.
Although NIMASA recently pledged to commence the long-awaited disbursement of the CVFF by August 2025, in what the agency claimed was in strict adherence to a directive issued by the Minister of Marine and Blue Economy, Adegboyega Oyetola.
The commitment was given by the Director General of NIMASA, Dr. Dayo Mobereola, during an oversight visit to NIMASA, by the House of Representatives Committee on Maritime Safety, Education, and Administration on Wednesday, April 23, 2025. Mobereola confirmed that the process had reached an advanced stage, with all necessary adjustments aligned with the Minister’s order to fast-track the disbursement.
The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to provide indigenous ship owners access to funding for vessel acquisition. The fund, which has accrued over $700 million, is pooled from the statutory 2 percent surcharge on all Cabotage contracts executed in the Nigerian maritime domain.
However, Shipping Position Daily’s findings reveal a trail of unfulfilled promises and shifting timelines between 2019 and 2025:
December 2019: Former Minister of Transportation, Rotimi Amaechi, announced the Federal Government’s approval for the disbursement of the CVFF. He revealed that President Muhammadu Buhari had granted approval, and a list of beneficiaries had been compiled. But the funds were not released.
September 2020: Amaechi again disclosed that the government was ready to commence disbursement, this time citing delays in finalizing procedures with Primary Lending Institutions (PLIs). Still, no funds were disbursed.
March 2021: NIMASA’s then-Director General, Dr. Bashir Jamoh, announced that the CVFF disbursement process was in its final stages and would begin “in a matter of weeks.” The promise did not materialize.
December 2021: In another statement, Jamoh reiterated that all was set for disbursement, stating that shipowners should prepare to meet eligibility requirements. Again, no funds were released.
May 2022: The Federal Ministry of Transportation issued yet another assurance that disbursement would begin before the end of the Buhari administration. This marked the fifth declaration in just three years.
December 2022: With much fanfare, the Ministry announced that President Buhari had again approved the immediate disbursement of the CVFF, directing NIMASA to work with the approved PLIs. Industry stakeholders celebrated what appeared to be a breakthrough. However, nearly two years later, not a single kobo has been released.
May 2023: At the twilight of the Buhari’s administration, Dr. Jamoh once more stated that disbursement was “just days away.” The deadline came and passed without any action.
July 2023: Under the new administration of President Bola Ahmed Tinubu, Minister of Marine and Blue Economy Adegboyega Oyetola inherited the process and promised that disbursement would be fast-tracked to grow the indigenous fleet. Still, the fund remained untouched.
November 2024: NIMASA issued a Marine Notice calling on interested applicants to submit their proposals through approved PLIs, detailing stringent requirements for access. The notice rekindled optimism among indigenous shipowners but came without any timeline for actual fund release.
March 2025: In a renewed push, Minister Oyetola again announced that the government had concluded all preparations and would begin disbursement “immediately.” As of April 2025, no single disbursement has been confirmed.
But, reacting to the latest announcement, stakeholders in the maritime industry have expressed frustration at the continued delays. Many describe the CVFF as a “political mirage,” raising concerns over transparency and political will.
“The credibility of this fund has been eroded. Each new government uses the disbursement narrative as a PR stunt,” a leading ship owner told Shipping Position Daily under anonymity.
But, Otunba Sola Olatunji, a chieftain of the Nigerian Indigenous Shipowners Association (NISA), minced no words: He said: “The word disbursement as it relates to CVFF is a scam. No process has taken place and you are talking about disbursement. What are you disbursing with? There must be a loan process before disbursement. Nothing has been done.” he said.
Prince Ayorinde Adedoyin, another ship owner voiced similar concerns, questioning whether the funds still exist at all:
“Every minister that has come in has said the same thing. Are you even sure the money is still there? Who are you disbursing to—companies from 10 years ago or new ones? There’s a lot of confusion, and I hope this doesn’t end up in litigation. Nobody knows how much is in that account.”
Veteran ship owner; Mr Tunji Brown warned that unless structural regulatory reforms are implemented; such as scrapping the waiver clause in favour of a “right of first refusal” policy, indigenous operators will continue to be sidelined.
“The CVFF could transform our industry and economy, but only if it is backed by political will, transparency, and regulatory fairness. Right now, it’s just another tool for political PR.”
Amid the deep pessimism, some stakeholders, like Aminu Umar; President of the Nigerian Chamber of Shipping (NCS), still hold out cautious optimism.
“This is the first time a marine notice has been issued calling for actual applications. That’s progress. We are excited and thankful to the minister for pushing it this far,
“Yes, PLIs were called and vetted during the last administration, but they never reached this stage. This time, the notice is out, and applicants are invited. That’s a new level, but we must keep watching,” he cautioned.
Industry observers say the credibility of the CVFF process has been eroded. What was supposed to be a lifeline for Nigerian shipping has turned into a bureaucratic maze, leaving ship owners disillusioned.
A senior industry stakeholder who spoke under anonymity captured the mood: “The CVFF has become a mirage. Each new government uses the disbursement narrative as a PR stunt. There’s no sincerity, and there’s no transparency.”
While the Marine Notice issued on November 22, 2024 by NIMASA listed clear procedures and eligibility conditions for accessing the fund—including a minimum equity contribution of 15 percent and a bankable feasibility report—industry experts say there is nothing to jubilate over, implementation is far from reality unless the government backs its words with visible action.
