After nearly two decades of delay, the Nigerian Maritime Administration and Safety Agency (NIMASA) has announced the selection of 12 Primary Lending Institutions to disburse the Cabotage Vessels Financing Fund (CVFF), marking a major step toward revitalising Nigeria’s maritime sector.
The Director-General of NIMASA, Dayo Mobereola, disclosed this on Monday during a virtual meeting, confirming that the disbursement would be issued at a single-digit interest rate to empower Nigerian shipowners and reduce foreign dominance in coastal shipping.
According to Mobereola, approvals have been secured from President Bola Tinubu and the Minister of Marine and Blue Economy, Adegboyega Oyetola, to operationalise the fund. The CVFF, established under the Cabotage Act of 2003, is aimed at supporting vessel acquisition and expanding the capacity of indigenous maritime operators.
Banks selected for the disbursement include First Bank, Fidelity Bank, Zenith Bank, United Bank for Africa, Jaiz Bank, and Lottos Bank, among others. Mobereola emphasized that the initiative is a strategic investment designed to strengthen local content and generate employment for Nigerian seafarers.
“This demonstrates the establishment of clear frameworks for transparent, efficient, and impactful fund utilisation,” he said, stressing that the loan facility would be rigorously monitored to ensure proper use.
Executive Director of Cabotage Services at NIMASA, Jubril Abba, added that the fund is expected to stimulate economic growth within the maritime industry and praised the government’s commitment to indigenous shipping development.
Legal Consultant to NIMASA on the CVFF, Adedoyin Afun, clarified that only Nigerian citizens operating vessels owned, built, managed, and operated by Nigerians will be eligible for the fund. He also noted that vessels must not be older than 12 months at the time of application to qualify.
Yusuf Buhari, the fund’s Financial Consultant, explained that beneficiaries must contribute an equity portion of the funding, while the CVFF will cover up to 50 percent of the cost or a maximum of \$25 million. He added that the loans will be issued in U.S. dollars, with an eight-year repayment window.
Zenith Bank Managing Director, Aburime Ehimare, called for the formation of a post-disbursement monitoring group and advocated for a security-sharing framework to protect the assets involved. The President of the Nigerian Chamber of Shipping, Aminu Umar, urged NIMASA to provide clearer terms and conditions for the loan, while safety engineer Olu Aladelusi recommended that insurance and repayment safeguards be included in the programme.
Mobereola concluded by underscoring that the CVFF is not a grant but a deliberate, long-term investment in Nigeria’s maritime future. “The CVFF represents not just the end of a long wait but the beginning of a new era for Nigerian shipping,” he said.
