The long-anticipated disbursement of the Cabotage Vessel Financing Fund (CVFF) appears imminent, as the Nigerian Maritime Administration and Safety Agency (NIMASA) has confirmed that beneficiaries of the fund will enjoy a single-digit interest rate, coupled with flexible loan conditions aimed at boosting the growth of indigenous shipping operators.
Speaking during a stakeholder engagement forum held in Lagos, the Director General of NIMASA, Dr. Dayo Mobereola, disclosed that the fund, which is being coordinated by the Federal Ministry of Marine and Blue Economy, will be issued with a two-year moratorium and an eight-year repayment tenure. The disbursement, he noted, will be administered through twelve approved Primary Lending Institutions (PLIs), in line with ongoing reforms to reposition Nigeria’s maritime industry for global competitiveness.
Dr. Mobereola assured participants that all necessary approvals for the release of the CVFF have been secured under the administration of President Bola Ahmed Tinubu, through the stewardship of the Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola, CON. He described the development as a game changer for the nation’s shipping sector, saying the facility will empower indigenous shipowners to acquire more vessels, increase Nigeria’s tonnage, create jobs for seafarers, and enhance local content participation in maritime operations.
“We are closer than ever to the disbursement of the CVFF,” the NIMASA DG declared. “Under President Tinubu’s Renewed Hope Agenda and with the support of Minister Oyetola, we have taken significant strides to operationalize this fund. This initiative will deepen maritime participation by local investors and improve competitiveness within the African maritime space.”
The agency also reaffirmed its commitment to accountability in the entire disbursement process. According to Mobereola, a dedicated Cabotage Secretariat has been established within NIMASA to oversee the process, while transparent eligibility criteria and lending guidelines have been developed in collaboration with the PLIs to ensure equitable access to the fund.
Beyond interest rates, other considerations being fine-tuned by the agency in partnership with the lending institutions include insurance frameworks, loan security arrangements, and a significant reduction in related administrative charges, with subsidized rates for Nigerian shipowners.
The announcement has sparked a wave of positive reactions across the maritime industry. President of the Nigerian Chamber of Shipping, Aminu Umar, was among several stakeholders who lauded the proactive steps taken by the Minister of Marine and Blue Economy and NIMASA to bring the CVFF to life. He described the initiative as a critical intervention capable of transforming the fortunes of Nigeria’s indigenous shipping sector.
Adding his voice to the commendations, former Director General of NIMASA, Mr. Temisan Omatseye—who had previously expressed skepticism over the disbursement—applauded the current leadership of the agency and the minister for demonstrating the political will to actualize what has eluded the industry for nearly two decades.
The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act, is funded through a 2% surcharge on cabotage contracts, intended to assist Nigerian operators in acquiring vessels for coastal trade. Despite being in existence for years, actual disbursement had stalled due to policy and procedural bottlenecks—issues that the current administration appears poised to overcome.
As preparations enter the final stages, the maritime community watches with cautious optimism, hopeful that the long-awaited fund will finally be deployed to rejuvenate local shipping businesses and enhance Nigeria’s role in regional maritime trade.
