By Steve Agbota
Nigeria’s indigenous shipowners have applauded the recent directive by the Minister of Marine and Blue Economy, Adegboyega Oyetola, instructing the Nigerian Maritime Administration and Safety Agency (NIMASA) to initiate the long-awaited disbursement process of the Cabotage Vessel Financing Fund (CVFF).
The directive, described as a bold and transformative step, signals a significant departure from over two decades of administrative inertia, offering fresh hope for the strategic repositioning of Nigeria’s domestic shipping industry.
The Managing Director of Starzs Marine and Engineering Limited and former President of the Shipowners Association of Nigeria (SOAN), Greg Ogbeifun, hailed the Minister’s move as a decisive action that could reinvigorate the sector. He emphasized the importance of adhering strictly to the legal framework governing the fund.
“The Minister’s move is extremely commendable. Extremely, extremely commendable. The important thing is that due process according to the requirements of the Act has to be followed. So, that’s the summary. I think it’s a very commendable step. I’ve looked at the marine notice that was sent out and I think it’s majorly in line with the requirements of the Act,” Ogbeifun stated. He further expressed cautious optimism about the process, noting that while the steps taken thus far appear promising, compliance with legislative provisions must not be overlooked.
“Even when you look at the previous guidelines, there is good reason to at least believe that the Minister is acting accordingly. But I don’t know if the requirements of the Act as it relates to the legislating part of government are followed,” he added. In his remarks, the President of the Shipowners’ Association of Nigeria (SOAN) and Managing Director of Petromarine Nigeria Ltd, Sonny Eja, also described the Minister’s directive as a long-overdue but highly welcome development. He lauded the decision to partner with the Bank of Industry (BoI) for the disbursement of the fund.
“I would say this is a welcome development. Though it’s long overdue, you know like I’ve always said to people—don’t blame yourself for not doing something yesterday or last week or last month. The best time to start is now, and so it’s a welcome development,” Eja said.
He expressed enthusiasm about the BoI partnership, noting that the involvement of a credible financial institution could enhance accountability and ensure proper deployment of funds.
“And I’m equally excited at the fact that they are partnering with BOI in respect of this fund. For me, to hear that they’re going to work with BOI to disburse this fund is quite a good development, too. Of course, the single obligor of $25 million is okay, it’s a welcome deployment as well, as it would allow wherever the borrowers are going to be to adequately use this fund judiciously,” he added.
Eja, however, urged the government to implement robust monitoring and recovery mechanisms to ensure that the funds are used productively and not diverted.
“Thirdly, I want to believe that they have set the right criteria for accessing these funds and I want to believe also that they have put in place very, very good measures to recover these funds so that people don’t just access these funds, divert them for other purposes and then they are not able to pay back.”
“Whilst we commend the Minister and the Federal Government through Mr President, we equally would urge whoever the beneficiaries of this fund will be to ensure that they’re put into good use so that it won’t give the industry a bad name—that either shipowners or other stakeholders just access these funds and then they now become non-performing loans.”
“I also believe that the equity contribution that they have put in place is okay so that there’s a commitment on the part of the borrower to know that, okay, I equally have a part to play in accessing these funds,” he concluded.
Similarly, President of the Nigerian Shipowners Association (NISA), Sola Adewunmi, praised the Minister’s proactive stance, describing it as unprecedented in the history of the CVFF.
“With the Minister’s pronouncement, let’s hope that things will change. But let us see the guidelines first. Also, I think this is the first time a Minister will come out to say, ‘NIMASA, start this process.’ So, let’s see. We are all waiting for the guidelines. When the guideline comes out, we know it is something that will be realistic,” Adewunmi said.