By Oluyinka Onigbinde
The Nigerian Maritime Administration and Safety Agency (NIMASA) has confirmed that the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF) will attract a single-digit interest rate, marking a significant milestone for indigenous shipowners and the broader maritime industry.
Speaking during a one-day stakeholders’ interactive forum on the operationalization of the CVFF, NIMASA’s Director General, Dr. Dayo Mobereola, disclosed that the fund would come with a two-year moratorium and an eight-year repayment tenure. The facility is set to be disbursed through 12 approved Primary Lending Institutions (PLIs).
Mobereola noted that alongside the interest rate, other critical issues such as insurance, fund security, flexible tenures, and the reduction of ancillary charges are also being addressed in collaboration with the PLIs to ensure a smooth rollout of the fund.
The 12 participating banks include First Bank, Fidelity, Zenith, United Bank for Africa (UBA), Jaiz Bank, and Lottos Bank, among others.
He credited the progress to the leadership of President Bola Ahmed Tinubu and the commitment of the Minister of Marine and Blue Economy, Adegboyega Oyetola, stating that: “Under the leadership of President Bola Ahmed Tinubu and with the support of the Honourable Minister of Marine and Blue Economy, HE Adegboyega Oyetola, we have secured all necessary approvals for the disbursement. This will be transformative—empowering indigenous operators, increasing local participation, creating jobs for Nigerian seafarers, and enhancing support services in the industry.”
Mobereola emphasized transparency as a key pillar of the process, revealing that a dedicated Cabotage Secretariat has been set up with clearly defined eligibility criteria. The selection of the 12 PLIs, he said, is also part of efforts to ensure broad and fair access to the fund.
Industry leaders, including the President of the Nigerian Chamber of Shipping, Aminu Umar, lauded the federal government and NIMASA for finally moving towards the implementation of the fund. Also lending his voice, former NIMASA Director General, Temisan Omatseye—who had previously expressed doubts about the fund’s disbursement, praised the agency and Minister Oyetola for their resolve in bringing the initiative to fruition.
NIMASA’s Legal Consultant on CVFF, Mr Adedoyin Afun, elaborated on the Cabotage Act’s provisions, noting that it is specifically designed for Nigerian citizens.
Afun explained further thar the Act aims to promote the development of shipping within Nigeria’s territorial waters.
He clarified the key requirements: vessels must be owned, built, operated, and managed by Nigerians.
Afun also outlined NIMASA’s enforcement powers under the Act and highlighted that vessels must have been purchased within 12 months prior to loan application.
The financial consultant for the fund, Mr Yusuf Buhari, said that the CVFF aims to provide Nigerian shipowners with access to affordable financing, thereby reducing Nigeria’s reliance on foreign vessels for its coastal and inland shipping needs.
He explained the required applicant contributions, with NIMASA (CVFF) providing up to 50 per cent or a maximum of 25 million dollars, with no direct funding.
According to him, the loan tenure is set at eight years, and the currency will be translated to U.S. dollars to align with international best practices.
The 12 participating banks include First Bank, Fidelity, Zenith, United Bank for Africa (UBA), Jaiz Bank, and Lottos Bank, among others.
During his virtual contribution, Mr Aburime Ehimare, the Managing Director of Zenith Bank, stressed the importance of engaging stakeholders in a post-disbursement monitoring group to ensure the programme’s effectiveness.
He also raised the need for a security sharing formula to address potential challenges related to the vessels.
The President of the Nigeria Chamber of Shipping (NCS), Mr Aminu Umar, called on NIMASA to clearly state the terms and conditions of the disbursement to ensure stakeholders are well-informed.
The CVFF, which has accumulated over the years from Cabotage trade contributions, is aimed at enabling indigenous shipping companies to acquire and maintain vessels, thereby reducing foreign dominance in Nigeria’s coastal and inland shipping services.
