President Bola Tinubu has approved disbursement of the Cabotage Vessel Financing Fund (CVFF) to strengthen indigenous participation in Nigeria’s maritime sector.
The fund, managed by NIMASA, ends years of delay in implementing the revolving scheme established under the Cabotage Act.
The CVFF supports vessel acquisition by Nigerian shipowners in coastal and inland shipping.
Mr Chika Chukwudi, NIMASA Assistant Director of Public Relations, disclosed the development in a statement issued in Lagos on Thursday.
He described the disbursement as “a defining moment”, signalling efforts to reposition Nigeria as a formidable maritime nation by empowering local operators.
Chukwudi said success would depend on repayment discipline, stressing the fund’s revolving structure required timely repayments to sustain access for future beneficiaries.
“For years, stalled implementation limited local capacity, leaving much coastal trade to foreign-flagged vessels.
“The disbursement is expected to boost Nigerian ownership, create jobs, and increase the country’s share of maritime trade,” he said.
According to him, the CVFF is a loan, not a grant, warning its survival depends on strict adherence to repayment obligations.
“Default carries immediate costs. Banks may seize vessels, contracts vanish, jobs are lost, and reputational damage can block future financing.
“In shipping, credibility is currency, and one operator’s default can harm the entire industry,” he said.
He warned that failure to sustain the fund would deny future operators access to financing, forcing reliance on foreign vessels.
“The implications extend beyond individuals. Weak repayment culture would undermine the revolving structure and deny future applicants critical funding,” he said.
Nigeria holds a Category C seat at the International Maritime Organization, reflecting its commitment to maritime development.
Chukwudi said maintaining the status required consistent progress, institutional credibility, and adherence to global best practices.
“Effective management of initiatives like the CVFF shapes international perception of Nigeria’s maritime governance.
“A pattern of defaults or weak enforcement could erode confidence and weaken Nigeria’s position in global maritime decision-making,” he said.
He said disciplined utilisation and repayment could expand fleet capacity, create jobs, and strengthen Nigeria’s voice globally.
Chukwudi described the CVFF as a test of collective responsibility, urging beneficiaries to use funds prudently and repay promptly.
“The opportunities are historic, but the responsibility is immense, and the consequences of failure are far-reaching,” he said.
