…As Mobereola Says CVFF Operationalisation Represents Critical In Nigerian Shipping
By Sandra Chukwunyere
A flurry of excitement yesterday, May 12, 2025 enveloped the atmosphere during the one (1) day stakeholders forum on the operationalization of the Cabotage Vessel Financing Fund (CVFF) organized by the Nigerian Maritime Administration and Safety Agency (NIMASA) at the Eko Hotels and Suites, as shipowners and other stakeholders gathered to discuss the framework of the disbursement.
While the executive management of the agency expressed delight for the flag off of the process for the long awaited disbursement project,finance experts, technical experts, ship owners, bankers and primary lending institutions, including other stakeholders expressed optimism for the latest advancement in the protracted utilization of the CVFF.
This is even as the stakeholders thanked President Ahmed Tinubu, Minister of Marine and Blue Economy, Gboyega Oyetola CON and the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola for demonstrating the required political will, courage and commitment to get the process off the ground.
Speaking at the one (1) day stakeholders forum on the operationalization of the Cabotage Vessel Financing Fund (CVFF), the Director General, NIMASA said that the development marks a significant milestone in strengthening the nation’s maritime sector.
“Today marks a significant milestone in strengthening Nigeria’s maritime sector.” He emphasized that the disbursement will be transformative for the industry, empowering indigenous shipowners to compete favorably, boost local content, create employment opportunities, and strengthen ancillary maritime services.
“The CVFF was established under the Coastal and Inland Shipping Act of 2003 to provide financial support to indigenous shipowners for vessel acquisition and capacity development.
“After nearly two decades of regulatory challenges, NIMASA has secured the necessary approvals for disbursement under President Bola Ahmed Tinubu’s leadership and with the support of the Honorable Minister of Marine and Blue Economy,
HE Mr.Gboyeya Oyetola”Mobereola while explaining that NIMASA has put in place far reaching measures to ensure that the fund is utilized effectively, emphasized that the disbursement is primed to have a positive impact on the maritime industry, with benefits extending to indigenous shipowners, seafarers, and the broader economy.To ensure transparency and accountability, NIMASA has established a dedicated Secretariat Cabotage Unit which has been saddled with the responsibility to develop a clear eligibility criteria and framework, and to partner with the accredited 12 Primary Lending Institutions (PLIs) to facilitate access to the fund”
Mobereola urged prospective applicants to follow the established procedures through partner financial institutions, stating,
“The CVFF is not a grant program but a strategic investment in Nigeria’s maritime future.”While also emphasizing the Agency’s commitment to ensure the proper monitoring of the fund utilization to ensure it achieves its primary objectives, said that NIMASA is committed to collaborative efforts to grow the maritime sector. The elated DG NIMASA said
“The operationalisation of the CVFF represents not just the end of a long wait but the beginning of a new era for Nigerian shipping.
“Whereas the CVFF is a loan with single-digit interest rate, stakeholders including the technical committee explained that the required counterpart funding from the PLIs is structured to reflect their commercial interest, even as the tenor of the loan tentatively structured by NIMASA for an eight month moratorium tipped the discussion, with the experts noting that the time frame is unrealistic but will be tailored in such a manner as to reflect the intendment of the Fund, largely as a support instrument.
The Executive Director, Maritime Labour and Cabotage Services, Jubril Abba, has said that the disbursement of the Cabotage Vessel Financing Fund (CVFF) underscores the agency’s commitment to empowering local shipowners and operators. According to Abba, the disbursement would reduce the nation’s reliance on foreign vessels by providing accessible financing options.
Abba disclosed that the CVFF is designed to benefit indigenous ownership of marine assets that would be deployed to boost activities within the Nigerian Cabotage space. He expressed appreciation for the presence of shipping companies and shipowners at the engagement session, stating that their input would add value to the discussions.
Abba called on stakeholders to rally round NIMASA in achieving a shared vision for a vibrant and self-reliant maritime sector. He emphasized the importance of collaborative partnerships to ensure the success of the CVFF disbursement and the sustainable growth of the maritime industry.
“NIMASA is working with Primary Lending Institutions (PLIs) to address issues such as insurance, fund security, flexible tenures, and the reduction of sundry fees to the barest minimum at subsidized rates. The agency is committed to empowering local shipowners and operators, stimulating domestic maritime commerce, and reducing reliance on foreign vessels.
“The CVFF disbursement is expected to have a positive impact on the nation’s economy, contributing to the growth of the Marine and Blue economy and catalyzing activities in other sectors. Stakeholders are optimistic about the potential of the CVFF to transform the maritime industry and promote economic development.
“By providing accessible financing options, NIMASA aims to boost indigenous ownership of marine assets and promote self-reliance in the maritime sector. The agency’s efforts are expected to lead to rapid economic growth and development, in line with the renewed Hope Agenda of the Administration.
“The success of the CVFF disbursement will depend on collaborative partnerships between NIMASA, shipowners, and other stakeholders. By working together, they can harness the full potential of the domestic shipping industry and ensure the sustainable growth of the maritime sector.
Speakers and stakeholders at the forum while freely expressing themselves, jaw-jaw on the nitty-gritty of the instrument and its application, shedding light on areas of possible conflicts, while looking forward to its successful execution as a revolving, sustainable facility to grow the marine and blue economy; and put Nigerian forward to compete favourably in the global stage.
The President of the Nigerian Chamber of Shipping, Aminu Umar, and other industry stakeholders commended the Minister of Marine and Blue Economy, Adegboyega Oyetola, and the management of NIMASA for their efforts in facilitating the disbursement of the funds. Former Director-General of NIMASA, Temisan Omatseye, who had previously doubted the realization of the CVFF, also joined others in commending the NIMASA Management and the Honorable Minister of Marine and Blue Economy.
Participants at the capacity filled hall include notable ship owners and industry captains, comprising of representatives from the federal ministry of marine and blue economy, Office of the Accountant General of the Federation, NNPCL financial consultants, allied industry players, shipping groups, among others.
