NIMASA, Ship-owners, Others Applaud Commencement of CVFF Disbursement

…Mobereola Says Development Represents A New Era In Nigerian Shipping

BY EGUONO ODJEGBA

The executive management of the Nigerian Maritime Administration and Safety Agency (NIMASA) yesterday, May 12, 2025 expressed delight for the flag off of the process for the long awaited disbursement of the Cabotage Vessel Financing Fund (CVFF).

Yusuff Buhari, a financial consultant explaining details of the framework

Project finance and technical experts, ship owners, bankers and primary lending institutions (PLIs), including other stakeholders while expressing optimism about the latest advancement in the protracted utilization of the CVFF, thanked President Ahmed Tinubu, Minister of Marine and Blue Economy, Gboyega Oyetola CON and the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola for demonstrating the required political will, verve and dedication.

Speaking at the one (1) day stakeholders forum on the operationalization of the Cabotage Vessel Financing Fund (CVFF) on Monday at the Eko Hotels and Suites, the Director General NIMASA, Dr. Dayo Mobereola said that the development marks a significant milestone in strengthening the nation’s maritime sector.

STOAN former president, Dr. Onyung and Mrs. Ify Akelere

“Today marks a significant milestone in strengthening Nigeria’s maritime sector.” He emphasized that the disbursement will be transformative for the industry, empowering indigenous shipowners to compete favorably, boost local content, create employment opportunities, and strengthen ancillary maritime services.

“The CVFF was established under the Coastal and Inland Shipping Act of 2003 to provide financial support to indigenous shipowners for vessel acquisition and capacity development.

Management staff of Zenith Bank contributing online during the meeting

“After nearly two decades of regulatory challenges, NIMASA has secured the necessary approvals for disbursement under President Bola Ahmed Tinubu’s leadership and with the support of the Honorable Minister of Marine and Blue Economy, HE Mr. Gboyega Oyetola”

Mobereola while explaining that NIMASA has put in place far reaching measures to ensure that the fund is utilized effectively emphasized that the disbursement is primed to have a positive impact on the maritime industry, with benefits extending to indigenous shipowners, seafarers, and the broader economy.

To ensure transparency and accountability, NIMASA has established a dedicated Secretariat Cabotage Unit which has been saddled with the responsibility to develop a clear eligibility criteria and framework, and to partner with the accredited 12 Primary Lending Institutions (PLIs) to facilitate access to the fund.

Mobereola urged prospective applicants to follow the established procedures through partner financial institutions, stating, “The CVFF is not a grant program but a strategic investment in Nigeria’s maritime future.”

While also emphasizing the Agency’s commitment to ensure the proper monitoring of the fund utilization to ensure it achieves its primary objectives, said that NIMASA is committed to collaborative efforts to grow the maritime sector.

The elated DG NIMASA said “The operationalisation of the CVFF represents not just the end of a long wait but the beginning of a new era for Nigerian shipping.”

Whereas the CVFF is a loan with single-digit interest rate, stakeholders including the technical committee explained that the required counterpart funding from the PLIs is structured to reflect their commercial interest, even as the tenor of the loan tentatively structured by NIMASA for an eight month moratorium tipped the discussion, with the experts noting that the time frame is unrealistic but will be tailored in such a manner as to reflect the intendment of the Fund, largely as a support instrument.

Speakers and stakeholders at the forum while freely expressing themselves, jaw-jaw on the nitty-gritty of the instrument and its application, shedding light on areas of possible conflicts, while looking forward to its successful execution as a revolving, sustainable facility to grow the marine and blue economy; and put Nigerian forward to compete favourably in the global stage.

Participants at the capacity filled hall include notable ship owners and industry captains, comprising of representatives from the federal ministry of marine and blue economy, Office of the Accountant General of the Federation, NNPCL, a former DG NIMASA, Barr. Temisan Omatseye, NISA President, Otunba  Sola Adewumi, Alhaji Aminu, Mrs. Ify Akerele, financial consultants, allied industry players, shipping groups, among others.