The Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola, CON, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to immediately commence the disbursement of the long-awaited Cabotage Vessel Financing Fund (CVFF). This strategic action aims to empower indigenous ship owners, enabling them to effectively compete with international counterparts who have historically dominated the nation’s coastal and inland shipping.
Established under the Coastal and Inland Shipping (Cabotage) Act of 2003, the CVFF was conceived as a vital instrument to provide structured financing for Nigerian shipping companies to acquire vessels.
However, for over two decades, the fund remained largely inaccessible. Oyetola’s directive signals a firm commitment to actualizing the fund’s original intent and unlocking its immense potential for national economic growth.
“This is more than just the release of funds; it is the dawn of a new era for Nigerian maritime. For too long, the promise of the CVFF has remained unfulfilled. Today, under the leadership of President Bola Ahmed Tinubu, we are breaking that barrier. We are initiating a transparent and strategic disbursement process that will inject vital capital into the hands of our hardworking indigenous operators, allowing them to build capacity, create jobs, and contribute significantly to our national economy,” Oyetola declared.
Responding immediately to the Minister’s directive, NIMASA issued a Marine Notice inviting eligible Nigerian shipping companies to submit their applications. Qualified applicants will have the opportunity to access up to $25 million each, with competitive interest rates, to acquire modern vessels that meet stringent international safety and performance standards.
The fund’s administration will be conducted in close collaboration with carefully vetted and approved Primary Lending Institutions (PLIs), ensuring a professional, efficient and accountable disbursement process.
Furthermore, the Minister emphasized the broader vision behind the initiative: “Our ambition extends beyond simply funding vessels. We are strategically investing in the future of Nigeria’s maritime industry. We envision a future where Nigerian shipping companies are not just participants but leaders in the regional and global maritime landscape. This pivotal step underscores our unwavering commitment to local content development, bolstering our economic resilience, and asserting our maritime sovereignty.”
The anticipated benefits of the CVFF disbursement are significant and far-reaching. It is expected to catalyze the growth of a robust and self-reliant Nigerian-owned shipping fleet, generate substantial employment opportunities for Nigerians, stimulate the growth of local shipbuilding and ship repair industries, and drastically reduce the outflow of capital associated with the chartering of foreign vessels.
Industry stakeholders have enthusiastically welcomed this development, describing it as a “game-changer” and a “historic turning point” for the Nigerian maritime sector.
Experts concur that the effective implementation of the CVFF will be instrumental in realigning the industry towards sustainable long-term growth, enhancing logistical efficiency, and elevating Nigeria’s standing in the global maritime community.
“We are resolutely addressing a long-standing challenge because our vision for Nigeria’s maritime future is clear and compelling. A strong indigenous fleet is not merely a matter of national pride; it is a critical strategic asset. Through this decisive intervention, we are securing Nigerian jobs, strengthening our national economy, and firmly establishing our rightful place in the global maritime economy,” Oyetola added.
This resolute action by the Tinubu administration and the Ministry of Marine and Blue Economy signifies a momentous achievement, reaffirming Nigeria’s readiness to assert its presence on the global maritime stage – driven by indigenous capacity, guided by clear policy directives, and underpinned by unwavering political will.
Signed
Anastasia Ogbonna
Director, Information and PR
