By Anthony Nwachukwu
Towards reigniting indigenous shipping development, the Minister of Marine and Blue Economy, Adegboyega Oyetola, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to immediately commence the process for the disbursement of the Cabotage Vessel Financing Fund (CVFF).
Established under the Coastal and Inland Shipping (Cabotage) Act of 2003, the CVFF, which was designed to empower Nigerian shipping companies with access to structured financing for vessel acquisition, has so far failed to be disbursed.
However, Oyetola’s directive signals the present administration’s intention to empower indigenous operators, as well as bolstering national competitiveness and fostering sustainable economic development.
According to the minister, “this is not just about disbursing funds but 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.”
Oyetola further explained that the disbursement is not merely about funding vessels but also “investing in a future where Nigerian shipping companies can stand shoulder-to-shoulder with international counterparts.
“This is a turning point – one that affirms our commitment to local content, economic resilience and maritime sovereignty.”
Noting that the disbursement is long overdue and the purpose delayed, Oyetola said this “should have been done years ago.
“A strong indigenous fleet is not just a matter of pride but also a strategic national asset. Through this intervention, we will be securing jobs, strengthening our economy, and redefining our place in the global maritime economy.”
Meanwhile, NIMASA has already responded to the directive by issuing a Marine Notice inviting applications from eligible Nigerian shipping companies, with each qualified applicant capable of accessing up to $25 million at competitive interest rates for the acquisition of vessels that meet international safety and performance standards.
The fund, in line with the guidelines already set in place by the previous administration, will be administered in partnership with carefully selected and approved Primary Lending Institutions to ensure professional and efficient handling.
If eventually disbursed, the CVFF will engender a stronger, self-sufficient shipping fleet that will generate employment, stimulate local shipbuilding and repair industries.
It will also significantly reduce the capital flight associated with foreign vessel chartering, and provide veritable sea-time training opportunities for Nigeria’s growing pool of cadet trainees.
