After over 20 years of stagnation, the Minister of Marine and Blue Economy, Adegboyega Oyetola, has reportedly directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the process that will lead to the disbursement of the Cabotage Vessel Financing Fund (CVFF).
Originally, the CVFF, which is part of the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to empower local Nigerian shipping companies to access structured financing for vessel acquisition.
Though the immediate past administration of President Muhammadu Buhari approved the disbursement of approximately N16 billion and $350 million from the fund, this was not to be as it was never done.
According to Special Adviser on Media and Communications to Oyetola, Dr. Bolaji Akinola, “under the visionary leadership of President Bola Tinubu and the determined stewardship of Oyetola, the federal government has signaled a deliberate course correction. The disbursement of the CVFF will represent not just the release of funds, but a profound commitment to empowering Nigerian maritime operators, bolstering national competitiveness, and fostering sustainable economic development.
“This is not just about disbursing funds. It’s about rewriting a chapter in our maritime history. For over 20 years, the CVFF remained a dormant promise. Today, we are bringing it to life—deliberately, transparently, and strategically.”
Already, NIMASA has issued a Marine Notice inviting eligible Nigerian shipping companies to apply. Qualified applicants can access up to $25million each at competitive interest rates to acquire vessels that meet international safety and performance standards. The fund will be administered in partnership with carefully selected and approved Primary Lending Institutions (PLIs), ensuring professional and efficient disbursement.
While we commend the federal government for this move, we advise that proper monitoring should be put in place to ensure that only those qualified can access the funds and the accessed funds are used for the right purposes.
