The Nigerian Maritime Administration and Safety Agency (NIMASA) has pledged to commence the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF) by August 2025, in strict adherence to a directive issued by the Minister of Marine and Blue Economy, Adegboyega Oyetola.
The commitment was made by the Director General of NIMASA, Dr. Dayo Mobereola, during an oversight visit by the House of Representatives Committee on Maritime Safety, Education, and Administration on Wednesday, April 23, 2025. Mobereola confirmed that the process had reached an advanced stage, with all necessary adjustments aligned with the Minister’s order to fast-track the disbursement.
“We are acting in accordance with the directive of the Honourable Minister to ensure indigenous shipowners finally have access to this critical funding,” Mobereola stated. “The guidelines have been streamlined based on the Minister’s approval, so beneficiaries can access the funds within three to four months.”
As part of efforts to ensure transparency and sustainability, NIMASA has expanded the number of Primary Lending Institutions (PLIs) from five to twelve. These banks will conduct risk assessments and ensure that only qualified and financially viable shipping firms benefit from the $700 million intervention fund.
The funding model will see banks contribute 35%, NIMASA 50%, while the remaining 15% will come from the shipowners as equity.
“By involving the banks, we are ensuring financial discipline and sustainability, which are crucial for this fund to continue long-term,” the DG explained.
Mobereola also emphasized that the loans would be provided at single-digit interest rates with tenures ranging between 15 and 20 years to enhance the competitiveness of indigenous operators in the global shipping market.
To complement the financial support, NIMASA is also collaborating with major cargo-generating entities such as the Nigerian National Petroleum Company (NNPC), the Nigeria Liquefied Natural Gas (NLNG), and exporters to guarantee cargo availability for Nigerian-owned vessels.
“We are creating a win-win scenario—access to finance and access to business,” Mobereola added.
The House Committee expressed satisfaction with the agency’s progress. Acting Chairman, Hon. Uduak Odudoh, lauded the leadership of Dr. Mobereola, particularly for the agency’s strategic innovation and measurable improvements in maritime safety.
“What we have seen today, especially with the clear reduction in maritime crime and the DG’s presentation, gives us confidence in NIMASA’s direction,” Odudoh said. “We will continue to work with the agency and the Ministry to ensure the success of this initiative and broader goals of the Blue Economy.”
Established over two decades ago, the CVFF was designed to empower indigenous shipowners and promote local participation in the maritime industry. With the renewed commitment from the federal government and NIMASA, stakeholders are hopeful that the fund will finally serve its intended purpose by the third quarter of 2025.
