By Idu Jude, Abuja
In a move aligned with the directive of the Minister of Marine and Blue Economy, Adegboyega Oyetola, the Nigerian Maritime Administration and Safety Agency (NIMASA) has committed to beginning disbursement of the long-awaited Cabotage Vessel Financing Fund (CVFF) by August 2025.
The pledge was made by the Director General of NIMASA, Dr. Dayo Mobereola, during an oversight visit by the House of Representatives Committee on Maritime Safety, Education, and Administration.
Dr. Mobereola confirmed that the agency is advancing swiftly toward full implementation, in strict adherence to the minister’s mandate.
“We are acting in accordance with the directive of the Honourable Minister to ensure indigenous shipowners finally have access to this critical funding,” Mobereola said. “The guidelines have been streamlined based on the Minister’s approval, so beneficiaries can access the funds within three to four months.”
To ensure efficient management of the $700 million fund and reduce financial risk, NIMASA has expanded the number of Primary Lending Institutions (PLIs) from five to twelve. These institutions will evaluate applications and ensure that only financially viable and credible operators receive support.
Under the revised disbursement model, the funding structure will see NIMASA contributing 50 per cent, the participating banks 35 per cent, and indigenous shipowners providing the remaining 15 per cent as equity.
“By involving the banks, we are ensuring financial discipline and sustainability, which are crucial for this fund to continue long-term,” Mobereola noted.
He further stated that the loans will be offered at single-digit interest rates and have tenures spanning 15 to 20 years, giving indigenous operators the flexibility to grow without undue financial strain.
In a complementary effort to ensure commercial viability, NIMASA is collaborating with key cargo generators such as the Nigerian National Petroleum Company (NNPC), the Nigeria LNG (NLNG), and other exporters to guarantee cargo availability for Nigerian-flagged vessels.
“We are creating a win-win scenario—access to finance and access to business,” the NIMASA boss explained.
The announcement drew praise from members of the visiting House Committee. Acting Chairman, Uduak Odudoh, lauded the leadership and direction of NIMASA under Mobereola.
“What we have seen today, especially with the clear reduction in maritime crime and the DG’s presentation, gives us confidence in NIMASA’s direction,” Odudoh said. “We will continue to work with the agency and the Ministry to ensure the success of this initiative and broader goals of the Blue Economy.”
Established over two decades ago, the CVFF was designed to empower Nigerian shipowners and strengthen the nation’s cabotage regime. However, years of delay have hindered its rollout. With NIMASA’s renewed commitment and the Minister’s backing, indigenous operators now look forward to meaningful financial support and operational transformation by the third quarter of 2025.