It’s a good way to start the New Year, with such hope that at last, the Cabotage Vessel Financing Fund (CVFF) is on the verge of being disbursed.
If nothing at all, the gathering of relevant stakeholders who witnessed the epoch launch of the official portal for the disbursement to ship owners, will bear witness to the fact that, a milestone had been recorded in the 23-year history of the CVFF.
Prior to last week’s event, each time, Nigerian Maritime Administration and Safety Agency, (NIMASA) or any government official talked about the disbursement, they sound like a ‘broken record’ – repetitive, without making any sense and deserving no attention. No one believed them, having been saying the same thing for years.
Even in May 2025, when the Director General of NIMASA; Dr Dayo Mobereola, assured that the funds will ‘soon’ be disbursed and that, it would attract a single digit interest, he was not convincing at all.
Speaking during a one-day stakeholders’ interactive forum on the operationalization of the CVFF, Dr. Dayo Mobereola had disclosed that the fund would come with a two-year moratorium and an eight-year repayment tenure. He also assured that the facility was set to be disbursed through 12 approved Primary Lending Institutions (PLIs). To almost everyone, including the media, he was on a familiar terrain – of diplomacy.
And last week, the portal that will officially kick-start the process of disbursement was opened for use by the Minister of Marine and Blue Economy; Adegboyega Oyetola.
The presence and clarity that was offered by two officials who were very critical to the success of the exercise, also added more certainty.
NIMASA’s Legal Consultant on CVFF, Mr Adedoyin Afun, elaborated on the CVFF disbursement’s legal requirements and obligations, including the liabilities on the three parties namely: NIMASA, the Primary Lending Institutions and the loan beneficiaries, that is the ship owners.
The financial consultant for the CVFF, Mr Yusuf Buhari, also offered clarities, that the required applicant contributions, with NIMASA (CVFF) providing up to 50 per cent or a maximum of 25 million dollars.
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.
While NIMASA sets a 5% annual interest rate on its counterpart funding, the banks initially wanted a much higher differential on the loans they are offering. After all the arguments, the PLIs agreed to a weighted average interest at 6.5% annual.
The stakeholders were also told by the DG of NIMASA that the loan is repayable in eight years because shipping needs long time funding and tenured loans. This will allow ship owners’ confidence and offer them rest of mind to repay the loans.
The stakeholder were also informed that there is moratorium for repayment of the loans, but this will be on a case-by-case basis based on analysis by PLIs and NIMASA
Even though the Minister encouraged the beneficiaries to be committed in their obligations, even as he declared that last Thursday’s event marked the official commencement of disbursement of the CVFF, the statement of the DG of NIMASA about the long journey CVFF disbursement.
He told the gathering that, the launch of the portal was not as important as the actual disbursement of the loans. He said, the portal launch symbolized the beginning of the proper journey towards disbursement.
The Ministry of Marine and Blue Economy, NIMASA, the PLIs and ship owners are co-travellers on the journey to the disbursement of CVFF. The journey can only be said to have ended when the loans start hitting the bank accounts of the beneficiaries and Nigeria begins to see the assets that have been acquired.
Going by the guidelines read-out by the fund’s consultants, and noting that these guidelines and explanations were clear and bot faulted by any of the players, a lot is on the table of the Minister. He is the final authority in this project. Going by the timelines that were clearly spelt out last Thursday, the request for the Minster’s approval would get to his desk within eight weeks of initiating the request by the ship owner.
Like one of the stakeholders suggested at the event, perhaps the Minister should delegate this to the DG of NIMASA to handle on his behalf. This is because, the Minister’s desk is loaded with competing issues, and coupled with the bureaucracy of the Nigerian civil service.
Here lies the fear that many are nursing. It is hope that, all the co-travellers adhere to the timelines, and that the delay will not come from the office of the Minister of Marine and Blue Economy.
