By Abbas Nazil
The Nigerian Maritime Administration and Safety Agency (NIMASA) has approved the disbursement of the Cabotage Vessel Financing Fund (CVFF) through 12 designated banks, marking a major milestone in efforts to transform the country’s maritime industry.
This development was announced by NIMASA’s Director-General, Dr. Dayo Mobereola, during a virtual stakeholders’ meeting held on Monday.
Mobereola described the rollout as a critical step towards revitalizing Nigeria’s blue economy and empowering indigenous shipowners.
Mobereola clarified that the CVFF disbursement is not a grant but a long-term strategic investment aimed at building capacity, creating jobs, and transforming Nigeria’s maritime future.
He said the initiative has received all necessary approvals under the administration of President Bola Ahmed Tinubu, with strong backing from the Minister of Marine and Blue Economy, Mr. Adegboyega Oyetola.
The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act of 2003, is designed to facilitate access to financing for vessel acquisition, local content development, and enhanced participation of Nigerian maritime operators in coastal and inland waters.
Twelve primary lending institutions (PLIs) have been selected to administer the fund in alignment with NIMASA’s regulatory framework and objectives.
The participating banks include First Bank of Nigeria, Fidelity Bank, Zenith Bank, United Bank for Africa (UBA), Jaiz Bank, and Lottos Bank, among others.
These institutions will be responsible for ensuring compliance with loan conditions, and disbursement will be overseen by a dedicated Cabotage Secretariat.
The loan terms were outlined by NIMASA’s financial consultant, Mr. Yusuf Buhari, who stated that beneficiaries will enjoy an 8-year repayment tenure with payments denominated in U.S. dollars.
Applicants must provide an equity contribution, while CVFF will finance up to 50 percent of the vessel acquisition cost or a maximum of $25 million, whichever is lower. Importantly, no direct cash disbursements will come from NIMASA itself.
Legal consultant Adedoyin Afun further clarified that only Nigerian-owned, Nigerian-built, Nigerian-operated, and Nigerian-managed vessels are eligible for the loan.
To qualify, vessels must also have been acquired within 12 months prior to application. This provision underscores the fund’s commitment to supporting local players and ensuring the growth of indigenous capacity in the sector.
To ensure transparency and accountability, loan utilization will be closely monitored. Proposals from stakeholders included the formation of a post-disbursement monitoring group and the establishment of a comprehensive security-sharing framework to mitigate risks.
Zenith Bank’s Managing Director, Mr. Aburime Ehimare, emphasized the need for proper monitoring, while the President of the Nigerian Chamber of Shipping (NCS), Aminu Umar, urged NIMASA to publicly release the full terms and conditions of the loan.
Safety engineer Olu Aladelusi also recommended that insurance and refund mechanisms be clearly spelled out in the loan agreements.
The meeting staged a technical demonstration of the loan application process, as stakeholders expressed their full support.