The much-anticipated disbursement of the Cabotage Vessel Financing Fund (CVFF), which industry operators had been assured would commence in August 2025, may suffer delays following ongoing recapitalisation exercises in the Nigeria’s banking sector.
Findings by our correspondent revealed that while some banks have already met the new capital requirements set by the Central Bank of Nigeria (CBN), the recapitalisation process across the sector could slow down lending activities — including the syndicated loan structure required for the CVFF scheme.
Recall that the Nigerian Maritime Administration and Safety Agency (NIMASA) appointed 12 Primary Lending Institutions (PLIs) to handle the disbursement of the over $360 million CVFF. The approved PLIs include: Fidelity Bank, Stanbic IBTC, United Bank for Africa (UBA), Zenith Bank, Lotus Bank, Union Bank, First Bank, Jaiz Bank, SunTrust Bank, and Globus Bank. Under the arrangement, the PLIs are to offer single-digit loans to qualified applicants, repayable within eight years, with disbursement expected within 91 days after all criteria are met.
Checks by our correspondent revealed that as of the end of the first half of 2025, only five of these PLIs — Access Bank, Zenith Bank, Ecobank Nigeria, Lotus Bank, and Jaiz Bank had crossed the new recapitalisation thresholds. The recapitalisation status of the remaining PLIs, namely Fidelity Bank, Stanbic IBTC, UBA, Union Bank, First Bank, SunTrust Bank, and Globus Bank, remains unclear, with no definitive public confirmation of their compliance as at press time.
In March 2024, the CBN directed commercial banks with international authorisation to raise their capital base to ₦500 billion and national banks to ₦200 billion, while those with regional authorisation must achieve a ₦50 billion capital floor. For non-interest banks, the national and regional authorisations require a capital base of ₦20 billion and ₦10 billion, respectively. Banks were given a deadline of March 2026 to comply.
Access Bank became the first Tier-1 lender to hit the ₦500 billion mark after its parent company, Access Holdings, secured regulatory approvals for a ₦351 billion Rights Issue in late December 2024. This raised the bank’s share capital to ₦600 billion — ₦100 billion above the required threshold.
However, despite such progress by a few institutions, concerns remain that the recapitalisation drive is diverting banks’ focus and liquidity away from new loan disbursements, particularly high-risk, capital-intensive ones like vessel financing.
Speaking with our correspondent, Otunba Sola Olatunji, a ship owner, expressed skepticism that banks undergoing recapitalisation would be willing to extend loans to ship owners at this time.
“Which bank will borrow or give loan to ship owners during the recapitalisation? These banks are still looking for money everywhere, and going to the public to access funding. Are they the ones that want to give out loans? The capitalisation process will end in February next year, so it’s only a matter of time — but for now, I don’t see them prioritizing this (CVFF loans).”
Olatunji also pointed out that the conditions for the CVFF loans had not been fully rolled out, and the syndicated loan arrangements were yet to be finalised.
Similarly, Chief Isaac Jolapamo, a prominent ship owner, questioned whether there was any real movement towards CVFF disbursement at all.
“I’m not aware that anything serious is taking place. The money is not there. Maybe when they give five or six people, they can gather more to give others. Until then, there’s nothing serious happening,” he remarked, suggesting that official pronouncements may not match the actual readiness of the funds.
On his part, Otunba Sola Adewunmi, President of the Nigerian Shipowners Association (NISA), explained that the disbursement process is designed to be bank-led, with ship owners initiating applications through their banks before final approval.
“Ship owners are supposed to get in touch with their bankers, who will present the application. It is after the bank’s assessment that the approval is given and the funds released. The banks also carry part of the risk by providing at least 35% of the funding. If a person has obtained approval, disbursement can begin, but it’s not a case of just calling and disbursing directly,” Adewunmi explained.
While official assurances have been given that CVFF disbursement will commence in August, the dual challenge of banks’ recapitalisation priorities and the procedural layers involving lenders could push the actual take-off date further.
