Valentine Okafor
In response to a firm directive from the Minister of Marine and Blue Economy, Adegboyega Oyetola, the Nigerian Maritime Administration and Safety Agency (NIMASA) has pledged to commence the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF) by August 2025.
Director General of NIMASA, Dr. Dayo Mobereola, made this commitment during an oversight visit by the House of Representatives Committee on Maritime Safety, Education, and Administration on Wednesday, April 23, 2025. Mobereola confirmed that the process has reached an advanced stage, in strict compliance with the Minister’s order to accelerate disbursement.
“We are acting in accordance with the directive of the Honourable Minister to ensure indigenous shipowners finally have access to this critical funding,” Mobereola stated. “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 will play a key role in risk assessment, ensuring that only credible, financially capable shipping firms benefit from the revolving fund.
The funding model will see banks contribute 35%, NIMASA 50%, and the remaining 15% 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,” the DG explained.
Dr. Mobereola also emphasized 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, NIMASA is 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 Dr. 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,” Odudoh said. “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.”
The CVFF, established over two decades ago to empower indigenous shipowners, has seen repeated delays. However, with Minister Oyetola’s clear directive and NIMASA’s accelerated compliance, shipowners now have renewed hope for meaningful support by the third quarter of 2025.