The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced that it would commence the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF) by August 2025.
TheHintsNews reports that CVFF was established over two decades ago to empower indigenous shipowners, but had experienced repeated delays.
Its Director General of NIMASA, Dr. Dayo Mobereola, made this known during an oversight visit by the House of Representatives Committee on Maritime Safety, Education, and Administration.
Mobereola, in a statement in Abuja on Wednesday, confirmed that the process has reached an advanced stage, in strict compliance with the directive of the Minister of Marine and Blue Economy, Adegboyega Oyetola, for the agency to accelerate disbursement.
He noted: “We are acting in accordance with the directive of the Minister to ensure indigenous shipowners finally have access to this critical funding.
“The guidelines have been streamlined based on the Minister’s approval, so beneficiaries can access the funds within three to four months.”
To manage the $700 million intervention fund efficiently, NIMASA has expanded the number of Primary Lending Institutions (PLIs) from five to twelve.
These banks would play a key role in risk assessment, ensuring that only credible, financially capable shipping firms benefit from the revolving fund.
Mobereola added: “The funding model will see banks contribute 35 per cent, NIMASA 50 per cent, and the remaining 15 per cent as equity from the shipowners themselves.
“By involving the banks, we are ensuring financial discipline and sustainability, which are crucial for this fund to continue long-term.”
Mobereola emphasised the agency’s insistence on single-digit interest rates and long-term loan tenures—15 to 20 years—to enable indigenous shipowners to compete globally without undue financial pressure.
In addition to funding access, the agency revealed that it was working alongside key cargo-generating stakeholders like NNPC, NLNG, and exporters to guarantee cargo availability for Nigerian-owned vessels.
“We are creating a win-win scenario—access to finance and access to business,” Mobereola said.
The commitment by NIMASA drew commendation from the House Committee, with Acting Chairman Hon. Uduak Odudoh expressing satisfaction with the agency’s performance and innovation under Mobereola’s leadership.
“What we have seen today, especially with the clear reduction in maritime crime and the DG’s presentation, gives us confidence in NIMASA’s direction. We will continue to work with the agency and the Ministry to ensure the success of this initiative and broader goals of the Blue Economy,” he said.