The President of the African Shipowners Association (ASA), Captain Ladi Olubowale, has declared that the long-anticipated disbursement of the Cabotage Vessel Financing Fund (CVFF) at a single-digit interest rate will unlock new opportunities for Nigeria’s maritime sector, boost indigenous capacity, and position Nigeria as a leading maritime nation in Africa.
Speaking in Lagos, Captain Olubowale, who also serves as the Managing Director of Seamate Maritime Integrated Services Limited, applauded the directive issued by the Minister of Marine and Blue Economy, Adegboyega Oyetola, mandating the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the disbursement by August 2025.
According to him, the involvement of Nigerian banks in the disbursement process is a “perfect strategy” that will ensure transparency, eliminate incidences of dubious borrowing, and instill international best practices into the administration of the fund.
“Without the banks’ involvement, it would have been free money for everyone. But now, with banks on top of the initiative and NIMASA standing as guarantor, transparency and due process will be entrenched,” Captain Olubowale said. He emphasized that all processes and conditions must be strictly met to avoid a repeat of the failures that marred past CVFF initiatives.
He noted that the move reflects the Tinubu administration’s commitment to nation-building and complements the Nigerian National Petroleum Corporation’s (NNPC) efforts to develop the downstream and upstream sectors of the economy.
Highlighting global best practices, Olubowale pointed out that major maritime nations such as Japan, China, and Indonesia have structured ship development funds with significant banking sector participation. “Nigeria must not be an exception,” he stated, adding that most Nigerian banks previously neglected the maritime sector by lumping it under energy desks. However, he expressed optimism that the CVFF disbursement would now correct this oversight with the establishment of dedicated maritime desks in banks.
He further explained that indigenous ship ownership would be significantly bolstered, allowing Nigerian-flagged vessels to compete more favorably within coastal waters currently dominated by foreign ships. “This is the time Nigerians can truly play in their own waters,” he said.
The ASA President stressed that while the announcement of disbursement is a step forward, significant preparatory work remains. “Disbursement is just one part of it; readiness, execution, and implementation must be properly connected,” he said.
On the preparedness of ASA for the disbursement, Olubowale revealed that the association is comprised of companies that already own and operate vessels engaged in trade within Nigeria and across Africa. He emphasized that all ASA Nigeria members are licensed by NIMASA and compliant with International Maritime Organisation (IMO) standards and Classification Society regulations.
“ASA is all over Africa. It is an association for companies that have ships fit for purpose, with cargoes – dry and wet – identified through extensive studies and advocacy. We are fully prepared for CVFF,” he said.
On Seamate Maritime Integrated Services Limited’s part, Captain Olubowale described the CVFF disbursement as the realization of a long-awaited dream. He explained that despite repeated efforts, sourcing ship finance from Nigerian banks has been almost impossible due to their unfamiliarity with the shipping trade.
He noted that Seamate has adopted a different strategy by entering into ship management agreements with several technical companies, ensuring that vessels are professionally managed. This approach, he said, would create a wealth of employment opportunities for master mariners, ship surveyors, and crew members.
“Our fleet strategy includes dedicating one vessel solely for trading and cadetship training. We are building our management structure to prepare for the CVFF disbursement,” Olubowale disclosed, adding that Seamate, which is registered in three African countries, has the capacity to train cadets as part of its core values.
He also praised the efforts of Minister Adegboyega Oyetola and the Director General of NIMASA, Dr. Dayo Mobereola, saying their commitment to the CVFF initiative would not only spur indigenous fleet development but would also make Nigeria a hub for trained, certified seafarers in Africa.
However, Captain Olubowale advised NIMASA to immediately begin stakeholder engagements to educate, sensitize, and prepare Nigerian shipowners on the requirements needed to qualify for the fund.
“Disbursement alone is not the solution. We must develop human capacity, especially master mariners who can nurture the next generation. We must address issues like decarbonization, green shipping, and Sustainable Development Goals (SDG 1 and 14) in our maritime strategies,” he said.
He called for a comprehensive strategic roadmap to drive fleet development, supply chain integration, and sustainability, adding, “Once Nigeria stands, the rest of Africa will stand.”
