By Abbas Nazil
The Federal Government has pledged to fast-track the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF) to support indigenous shipping companies and enhance the growth of Nigeria’s maritime industry.
This commitment was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dayo Mobereola, at his office in Abuja last weekend.
Edun reiterated the government’s dedication to unlocking the economic potential of the maritime industry by improving access to financing for local shipowners.
He described the accelerated disbursement of the CVFF as a crucial step toward strengthening Nigeria’s maritime sector, enhancing coastal trade, and reducing the dominance of foreign-owned vessels in Nigerian waters.
The initiative, he noted, would not only create employment opportunities for Nigerians but also boost economic activity within the sector.
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The meeting between the finance minister and the NIMASA chief highlighted the importance of collaboration between key stakeholders in ensuring the effective utilization of the fund.
A statement from the Federal Ministry of Finance reinforced the government’s intent to ensure that the fund serves its purpose of empowering local players in the maritime sector.
The CVFF, which was established under the Coastal and Inland Shipping (Cabotage) Act of 2003, is a dedicated fund aimed at supporting indigenous shipowners by providing financial assistance for vessel acquisition and expansion.
However, despite its establishment, the fund’s disbursement has faced several delays over the years, limiting its impact on the sector.
With the government’s renewed commitment, expectations are high that the fund will soon be released to eligible shipowners, leading to increased participation of Nigerian companies in coastal shipping and reducing the nation’s reliance on foreign vessels.
The move is expected to generate thousands of jobs in the maritime sector while fostering economic diversification.
The Federal Government has assured stakeholders that the process of disbursement will be transparent, ensuring that the CVFF is effectively utilized for the growth and sustainability of the Nigerian maritime industry.
