Stakeholders in Nigeria’s maritime sector have expressed optimism over the Cargo Defence Fund (CDF), saying the initiative is expected to strengthen the protection of Nigerian cargo owners and will not suffer the prolonged delays that have plagued the Cabotage Vessel Financing Fund (CVFF).
The Cargo Defence Fund is designed as a financial safety mechanism to support Nigerian shippers in disputes with shipping companies and other service providers in the maritime value chain. Industry stakeholders say the fund will provide financial backing for litigation, regulatory engagement and other actions aimed at protecting the rights and interests of cargo owners who often face arbitrary charges, cargo delays and other operational challenges in the ports.
Recall that the fund itself has a long and contentious history. For years, shipping companies operating in Nigeria collected charges related to cargo defence from importers and exporters.
However, shippers’ groups insisted that the funds were meant to serve the collective interest of cargo owners and should be properly accounted for and administered in a transparent framework.
The disagreement eventually led to a prolonged legal battle between shipping companies and shippers’ associations, particularly members of the Shippers’ Association of Lagos State (SAL). The dispute lasted several years, before the court eventually ruled in favour of Nigerian shippers, paving the way for the recovery and proper structuring of the Cargo Defence Fund.
Industry stakeholders noted that the court victory represented a major breakthrough for cargo owners who had long argued that Nigerian shippers needed institutional financial backing to defend their interests against powerful global shipping lines operating in the country.
Speaking on the development, President of the Shippers Association of Lagos State, Nicodemus Odollo, expressed confidence that the fund would not end up like the CVFF, which has remained largely undisbursed despite years of accumulation.
“To be frank with you, it will not go that way,” Odollo said when asked whether the fund could suffer the same fate as the CVFF.
“Thank God that we are working with people of integrity and as a result of this, our fund is preserved and will be judiciously disbursed.”
He described the Cargo Defence Fund as a good initiative that would benefit shippers across the federation and strengthen the capacity of cargo owners to defend their interests within the maritime sector.
According to him, the fund is currently domiciled with the Central Bank of Nigeria, while the necessary administrative framework for its implementation is being put in place.
“The fund is with the CBN,” he said, noting that although no specific date has been fixed for disbursement, the process is already underway.
“There is no date set yet, but very soon. The board has just been constituted and there is a council working to ensure that the management structure is properly established and the projects that will dispense the fund are put in place.”
Also commenting on the development, former President of the Shippers Association of Lagos State, Rev. Jonathan Nicol, said stakeholders are currently working through the operational framework that will guide the implementation of the fund.
Nicol explained that consultations are ongoing among shipper groups, regulators and other industry stakeholders to ensure the initiative is implemented smoothly.
“We are at the preliminary stage,” he said.
“We now have a national body and we are working together with them and also with the Nigerian Shippers’ Council, so that there will be workable harmony among all the stakeholders.”
He added that a Standard Operating Procedure (SOP) guiding the operation of the fund has already been circulated to stakeholders for review and input.
Nicol recalled that the agitation for the Cargo Defence Fund gained momentum during his tenure as president of the Shippers Association of Lagos State, when shippers’ groups intensified advocacy and legal action that eventually led to the court victory establishing the legitimacy of the fund.
“The shippers’ association fought for it and we tried to maintain our integrity as far as we are concerned,” he said.
“We have always said we want to bring a new port order. At the end of the day, if the port becomes better for us, then future generations will enjoy it.”
Despite the optimism expressed by the stakeholders, findings by our correspondent revealed that the experience of the Cabotage Vessel Financing Fund remains a cautionary example within the maritime sector.
The CVFF was created to help indigenous shipowners acquire vessels under Nigeria’s cabotage regime, but the fund has remained largely inaccessible to intended beneficiaries for many years, raising concerns about the management of intervention funds in the industry.
However, SALS insist that lessons from the CVFF experience have informed the current approach to the Cargo Defence Fund and have strengthened the resolve of shipper groups to ensure transparency and accountability in its management.
Odollo believe that if properly implemented, the Cargo Defence Fund could significantly strengthen the bargaining power of Nigerian cargo owners and provide a long-awaited institutional shield for shippers in their dealings with international shipping companies operating in the country’s ports.
