By Patience Chat Moses
The Nigerian maritime sector has witnessed significant development with the Minister of Marine and Blue Economy, Adegboyega Oyetola, directing the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the disbursement process of the Cabotage Vessel Financing Fund (CVFF). The development was announced in a statement signed in Abuja by Dr Bolaji Akinola, the Media and Communications Adviser to the minister.
The move aims to empower Nigerian shipping companies through access to structured financing for vessel acquisition, a promise that has remained dormant for over two decades.
The CVFF Concept
The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to empower Nigerian shipping companies through access to structured financing for vessel acquisition.
The CVFF is a financing mechanism designed to support the development of Nigeria’s maritime industry. The idea behind the CVFF concept is to promote indigenous shipping, increase local capacity, and boost economic growth. The fund provides financing to eligible Nigerian shipping companies for vessel acquisition, administered in partnership with lending institutions, offering competitive interest rates.
Oyetola said that the directive marked a significant shift from over two decades of administrative stagnation and ushered in a new era of strategic repositioning of Nigeria’s indigenous shipping
The disbursement of the CVFF, he added, will represent not just the release of funds but a profound commitment to empowering Nigerian maritime operators, bolstering national competitiveness, and fostering sustainable economic development.
Oyetola said that NIMASA, in alignment with the ministry’s directive, had already issued a Marine Notice inviting eligible Nigerian shipping companies to apply.
According to him, qualified applicants can access up to $25 million each at competitive interest rates to acquire vessels that meet international safety and performance standards.
The minister said that the fund would be administered in partnership with carefully selected and approved Primary Lending Institutions (PLIs), ensuring professional and efficient disbursement.
He said that the purpose was not merely funding vessels but also investing in a future where Nigerian shipping companies could stand shoulder to shoulder with their international counterparts.
The CVFF concept is not unique to Nigeria alone, as other countries have implemented similar funding models to support their maritime industries. Countries like South Africa and Brazil have successfully used financing mechanisms to promote indigenous shipping and develop their maritime capacities.
Benefits for Nigeria
The CVFF will enable Nigerian shipping companies to acquire vessels, strengthening the country’s maritime industry and reducing reliance on foreign-owned vessels. Also, growing the indigenous shipping fleet will create employment opportunities in the maritime sector.
The development of the maritime industry will contribute to Nigeria’s economic growth and increase its global competitiveness.
The commencement of the CVFF disbursement process marks a significant milestone in Nigeria’s maritime development. With far-reaching implications for the country’s economy and the global maritime space, the CVFF is poised to revolutionise Nigeria’s maritime industry and increase its global competitiveness. A maritime analyst notes that as the industry looks to the future, the CVFF will play a critical role in shaping the country’s maritime landscape.