By correspondent in Lagos.
The Nigerian Maritime Administration and Safety Agency (NIMASA) has approved 12 Primary Lending Institutions (PLIs) to disburse the long-awaited Cabotage Vessel Financing Fund (CVFF) at a single-digit interest rate.
Our correspondent reports that the move is aimed at boosting indigenous participation and capacity in Nigeria’s maritime sector.
NIMASA’s Director-General, Dr. Dayo Mobereola, announced the development during a virtual stakeholders’ meeting.
He highlighted the commitment of President Bola Tinubu’s administration and the support of the Marine and Blue Economy Minister, Mr. Adegboyega Oyetola, in securing the necessary approvals for the fund’s rollout.
Mobereola described the CVFF as a transformative initiative that will empower indigenous shipowners, enhance local content, and create employment opportunities within the maritime industry.
He stressed that loan utilisation would be closely monitored to ensure transparency and impactful implementation.
The CVFF, established under the Coastal and Inland Shipping Act of 2003, is designed to provide financial support for vessel acquisition and capacity building among Nigerian operators. Mobereola said the fund’s disbursement signals a new era after nearly two decades of delay.
The implementation framework features a dedicated Cabotage Unit, defined eligibility criteria, and strategic partnerships with the 12 PLIs.
Mobereola reminded stakeholders that the CVFF is a loan, not a grant, and called on applicants to follow due processes through the designated banks.
The Executive Director of Cabotage Services, Mr. Jubril Abba, said the fund wouls invigorate maritime activities, while NIMASA’s legal consultant, Mr. Adedoyin Afun, reiterated that the CVFF is strictly for Nigerian citizens and vessels that are Nigerian-owned, built, and operated.
A Financial consultant, Mr. Yusuf Buhari,explained that CVFF would provide up to 50% of the vessel financing, capped at $25 million, with an eight-year loan term.
Applicants must also contribute equity, and funds will be disbursed in U.S. dollars to reflect global standards, he said.
The 12 banks include First Bank, Fidelity Bank, Zenith Bank, UBA, Jaiz Bank, and Lottos Bank. Zenith Bank’s MD, Mr. Aburime Ehimare, emphasized the importance of post-disbursement monitoring and a security-sharing framework to address vessel-related risks.
Stakeholders called for clarity on disbursement terms, insurance provisions, and loan repayment conditions. The meeting concluded with a demonstration of the CVFF loan application process.
Edited by Dada Ahmed.
