Maritime industry stakeholders have expressed cautious optimism following the long-awaited take-off of the Regional Maritime Development Bank (RMDB), a project conceived over 16 years ago, but which remained inactive until its recent activation by the Federal Government with the appointment of a Managing Director and confirmation of a $500 million take-off capital.
The RMDB, a financial institution initiated under the auspices of the Maritime Organization of West and Central Africa (MOWCA), was designed to bridge the funding gap in the maritime and shipping sector across member states in the sub-region. The bank is expected to provide long-term, low-interest financing to indigenous shipowners and maritime investors to foster regional trade and strengthen local capacity within the blue economy.
Despite the lofty intentions behind the RMDB, the initiative remained in limbo for over a decade, due to a combination of regional bureaucratic delays, lack of political will, financing hurdles among member states, and leadership vacuum.
However, the recent announcement by the Federal Government, appointing a substantive Managing Director — a former Executive Director (Finance) at the Nigerian Maritime Administration and Safety Agency (NIMASA) has reignited industry conversations, this time shifting focus to implementation, transparency, and actual stakeholder benefits.
Reacting to the development, President of the Nigerian Chamber of Shipping, Mr. Aminu Umar, described the bank’s activation as a “welcome development”, noting that the industry now looks forward to engagement and clarity from the newly-appointed management.
“We are very happy that the MD (of the bank) has been appointed now. And with that one, I believe it will be a kick-off,” Umar said. “We look forward to working with the bank closely to open up capital requirements for the shipping industry. To be honest, we did not see any write-up regarding that. But we believe that the new Managing Director, who used to be the Executive Director, Finance of NIMASA, will come out and meet the stakeholders and tell us what the amount they will use as initial capital is. We are waiting for him to have that communication.”
For other industry players, while the bank’s launch is a step forward, key concerns remain unresolved, especially around ownership structure, sustainability of funding, and accessibility of capital for indigenous operators.
Shipowner and Nigerian Indigenous Shipowners Association (NISA) member; Prince Ayorinde, Adedoyin emphasized the need for transparency, investor clarity, and realistic lending models aligned with global maritime financing standards.
He questioned whether the RMDB would truly offer affordable long-term credit that can compete with global benchmarks or merely replicate Nigeria’s often punitive lending structure.
“Are they going to work as per what is obtainable in Europe or America, especially when it comes to interest rates and loan terms?” Ayorinde queried. “The issue we’ve been dealing with in Nigeria is using short-term funding to finance long-term projects. CBN has done nothing about that. Banks reassess loans every year, increase fees and interest rates, and you’re expected to compete globally with people getting money at three percent for 10 years. If the maritime bank is going to bring long-term funding at a good interest rate, fantastic. But we need to understand the ownership. Is the government investing or are they bringing in private capital?”
He also raised red flags over speculation that the long-dormant Cabotage Vessel Financing Fund (CVFF) might be used to finance a regional entity that is not exclusively owned by Nigeria.
“If eventually they use the CVFF, will it be right to use Nigerian CVFF money to kick-start a regional bank that is not meant for Nigerians alone? No,” he insisted. “This has to be like the ECOWAS bank where member states contribute funding. We need 100% clarity on what the regional bank is going to stand for and how it’s going to benefit us.”
Former Vice President of Ship Owners Association of Nigeria (SOAN), Mr. Eno Williams, also praised the development, but stressed the need for the bank to remain focused on the peculiar financial needs of indigenous shipowners who are often neglected by traditional commercial
He added that conventional banks “don’t do anything maritime or marine, they are very confused,” and concluded, “We’ll make mistakes, we’ll correct them, and a few years from now, we should be on cruising altitude.”
Also speaking, Otunba Sola Olatunji of NISA welcomed the bank’s take-off , but expressed worry over its timing and political undertones, noting that it coincides with recent noise around the CVFF disbursement — a fund which has suffered serial delays and opacity for years.
“In a normal clime, institutions are created to solve humanity problems. This regional maritime bank should gladden every heart provided it will function in line with its primary objectives. But I am worried that all of this is coming at a time when the government is also talking about CVFF disbursement,” Olatunji noted.
Also speaking, a former acting President of the Association of Nigerian Licensed Customs Agents (ANLCA), Mr. Kayode Farinto, lauded the initiative and the appointment of leadership but described the RMDB as an “under-cover fund in disguise,” urging vigilance among stakeholders to ensure it serves its purpose.
“This is a policy that has been in place for the past 16 years,” Farinto said. “Now the bank has about $500 million for take-off. The bank, if you study the principles, is going to move up in infrastructure. So every stakeholder in the maritime industry can have access to that fund.”
