The Cabotage Vessel Financing Fund (CVFF) is to be disbursed by the Federal Ministry of Marine and Blue Economy through the Nigerian Maritime Administration and Safety Agency (NIMASA) at a single-digit interest rate.
Under the arrangement, twelve (12) Primary Lending Institutions (PLIs) have been confirmed to facilitate the disbursement process.
In his presentation on the modalities for the CVFF disbursement at a stakeholders interactive forum on Monday in Lagos, financial consultant to the agency on the fund, Mr Yusuf Buhari explained that NIMASA would ensure that the cost of the loan remains at a single digit interest rate.
Buhari identified the PLIs as United Bank for Africa (UBA), First Bank, Zenith Bank, Jaiz Bank, Union Bank, Fidelity Bank, Polaris Bank, Sterling Bank, Providus Bank, Wema Bank, Keystone Bank and Access Bank.
The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to empower Nigerian shipping companies access to structured financing for vessel acquisition. The total amount of the CVFF is estimated at $700 million.
Addressing the Stakeholders earlier, the Director-General of Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dayo Mobereola explained that the stakeholders forum marked a significant milestone in strengthening Nigeria’s maritime sector.
He emphasised that the CVFF established under the Coastal and Inland Shipping Act of 2003 to provide financial support to indigenous shipowners for vessel acquisition and capacity development had remained unaccessible after two decades of regulatory challenges and bad experience of the past.
“I am delighted to announce that under President Bola Ahmed Tinubu’s leadership and with the support of the Honorable Minister of Marine and Blue Economy, Gboyega Oyetola, we have secured the necessary approvals for disbursement,” he assured.
He added: “This disbursement will be transformative for our industry– empowering indigenous shipowners to compete favourably; boosting local content in the maritime sector; creating employment opportunities for Nigerian seafarers; and strengthening ancillary maritime services.
“To ensure transparency and accountability, we have established a dedicated Secretariat Cabotage Unit and developed clear eligibility criteria.
“We have also partnered with 12 PLIs to facilitate access to the fund.”
Mobereola urged all prospective applicants to follow the established procedures through our partner financial institutions.
“The CVFF is not a grant programme but a strategic investment in Nigeria’s maritime future.
“It is a loan with a single digit interest. We will monitor fund utilization to ensure they achieve the intended objectives,” he assured.
He noted that the operationalisation of the CVFF represents not just the end of a long wait but the beginning of a new era for Nigerian shipping.
Other issues being addressed by NIMASA in collaboration with the PLIs include insurance, fund security, flexible tenures, and the reduction of sundry fees to the barest minimum at subsidized rates.
In his words: “I am delighted to announce that under President Bola Ahmed Tinubu’s leadership, and with the support of the Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola, we have secured the necessary approvals for disbursement. This disbursement will be transformative for our industry by empowering indigenous shipowners to compete favourably, boost local content in the maritime sector, create employment opportunities for Nigerian seafarers, and strengthen ancillary maritime services.”
In his remarks, 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 Honourable Minister of Marine and Blue Economy.
