By Steve Agbota
To strengthen Nigeria’s maritime sector and deepen indigenous participation, the House of Representatives Committee on Maritime Safety, Education, and Administration has thrown its weight behind the long-overdue overhaul of the country’s maritime laws, while affirming its full support for the operationalisation of the Cabotage Vessel Financing Fund (CVFF).
The assurance was given during an oversight visit by members of the Committee to the Nigerian Maritime Resource Development Centre (NMRDC) in Kirikiri, Lagos, on Tuesday. The visit, which provided an opportunity to evaluate the performance and operations of the Nigerian Maritime Administration and Safety Agency (NIMASA), also served as a platform for high-level discussions on the challenges confronting the maritime industry and the opportunities that lie ahead.
Deputy Chairman of the Committee, Hon. Uduak Odudoh, expressed concern over the outdated state of the nation’s maritime legal framework, which he said is no longer reflective of current realities or global standards. According to him, there is now a legislative consensus on the need for comprehensive reforms to reposition Nigeria’s maritime industry as a key driver of economic development.
“We acknowledge the concerns raised by NIMASA about the current legal framework, and I want to assure stakeholders that the National Assembly is fully committed to reviewing and updating these laws to align with international best practices,” Odudoh stated.
He lamented the low level of indigenous participation in vessel ownership, pointing out that fewer than five percent of ships operating under NIMASA’s regulatory authority are owned by Nigerians.
“This is unacceptable, and we believe the tide is about to turn. With the Cabotage Vessel Financing Fund (CVFF) now finally activated and domiciled with the Central Bank of Nigeria, we are optimistic that more Nigerians will soon be able to own and operate vessels,” he said.
Odudoh described the CVFF as a strategic instrument that could transform the industry, reduce capital flight, create employment, and build local capacity in line with the objectives of the Cabotage Act. He also stressed the importance of transparency, accountability, and inclusivity in the fund’s implementation.
“We commend the Minister of Marine and Blue Economy for his bold steps, and we charge NIMASA to develop a strong and transparent implementation framework. This is a critical moment in our maritime history,” he added.
The lawmaker further disclosed that the Committee is ready to support the maritime sector with not only enabling legislation but also financial appropriations, including supplementary budget approvals where necessary, to help NIMASA address key operational bottlenecks and deliver on its mandate.
As part of its oversight function, the Committee, he said, will extend similar visits to other NIMASA formations across the country to ensure uniformity in standards, improved service delivery, and institutional synergy.
The lawmakers also commended NIMASA’s impressive track record in curbing maritime insecurity. Odudoh noted that the agency’s efforts had led to a remarkable decline in piracy and sea robbery, with Nigeria recording zero piracy incidents in its territorial waters and the wider Gulf of Guinea for three consecutive years.
Responding during the engagement, Director General of NIMASA, Dr. Dayo Mobereola, reaffirmed the agency’s commitment to full activation of the CVFF. He said the disbursement process had entered an advanced phase following the approval of updated guidelines and the strategic expansion of Primary Lending Institutions (PLIs) from five to twelve.
“These PLIs will carry out the initial risk assessments and contribute 35 percent of the loans, while NIMASA will provide 50 percent. This collaborative funding structure ensures only financially viable and competent Nigerian shipping companies can access the fund,” Mobereola explained.
He reiterated that the CVFF is a patient and revolving fund designed to support sustainable development. According to him, the loans will be issued at single-digit interest rates with long repayment periods ranging from 15 to 20 years—terms he described as favourable for the growth of local shipping businesses.
“This fund is structured to encourage long-term investments in the sector and give Nigerian shipowners a fair chance to compete globally,” the DG noted.
Mobereola also disclosed that NIMASA is engaging with major cargo-generating entities such as the Nigerian National Petroleum Company Limited (NNPC), Nigeria LNG Limited (NLNG), and other exporters to ensure that Nigerian-owned vessels benefit from priority cargo allocation.
“Our goal is to create a dual advantage—access to funding and guaranteed access to cargo. That’s how we ensure beneficiaries of the CVFF succeed, not just in acquiring vessels, but in running sustainable shipping businesses,” he added.
As the legislative and executive arms of government close ranks to unlock the full potential of Nigeria’s maritime industry, stakeholders believe the reforms being pushed through could herald a new era—one marked by robust local content, economic diversification, and maritime sovereignty.