Indigenous Ship Owners Set to Access $700 Cabotage Vessel Fund from NIMASA

Dr. Dayo Mobereola, the Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), has revealed that the controversial fund’s disbursement from the Cabotage Vessel Financing Fund (CVFF) will begin in August 2025, restoring hope for indigenous ship owners who have been waiting more than two decades to access the much-elusive Cabotage Vessel Financing Fund (CVFF).

Speaking during the House of Representatives Committee on Maritime Safety, Education, and Administration’s oversight visit on Wednesday, April 23, 2025, Mobereola stated that the selection of 12 Primary Lending Institutions (PLIs) to manage the $700 million intervention funds marks an advanced stage in the process.

The agency’s immediate prior administration, headed by Dr. Bashir Jamoh, initially appointed five PLIs.

The expedited procedure for the cash distribution came after Adegboyega Oyetola, the Minister of Marine and Blue Economy, gave NIMASA the order to start the disbursement process right away.

 “We have simplified the guidelines by the Honourable Minister of Marine and Blue Economy’s approval to guarantee that shipowners can access the funds in a minimum of three to four months.”The fact that we are using the banks is what matters most about it. Therefore, it won’t be entirely a NIMASA initiative. To ensure that anyone wishing to access this fund has the financial capacity, the banks will conduct the initial risk assessment.

“The bank will lend 35 per cent, NIMASA will lend the remaining 50 per cent, and the fund beneficiary will supply the remaining 15 per cent of the equity shares.”Because it’s a revolving fund, the bank is taking that risk to make sure that the firm approaching us is a legitimate shipping company with the ability to trade and repay.

“We have given the bank the strength we need so they can assist us in handling that aspect of it. By God’s grace, it will begin circling and continue continuously over the years before the end of this year. The PLIs have been extended to 12 banks. The previous ones were still relevant when we re-advertised. We now have twelve banks.

“And the truth is that we continue to demand single-digit interest rates because we want our shipping firms and ships to be able to compete with those in other countries. Additionally, we require patient capital, which means that when a loan is granted, it is for a period of 15 to 20 years so that a shipowner is not under pressure to repay the debt right away. That’s just one aspect of it. Another aspect of it is that we are trying to make sure they have cargo to carry.

To ensure that they use Nigerian vessels that would be accessible at that time, we are collaborating with the exporters, NNPCs, NLNGs, and cargo generators. Therefore, everyone benefits, and the ship owners support us.

In his remarks, Honourable Uduak Odudoh, the acting chairman of the House Committee on Maritime Safety, Education, and Administration, gave the NIMASA DG the committee’s support. “I can honestly say that we are impressed with everything we have seen thus far today, beginning with the DG’s presentations.

“The DG’s presentation was the main moment that impressed us. We observed that there hasn’t been a single instance of piracy or other maritime crimes in the past three years. And what is involved in that? This implies that those who were previously conducting business in the water now have the freedom to do so. Additionally, NIMASA will now have additional chances to bring in more money for the country.

“Let me also tell the DG that he has been in office for about a year and that we are impressed with the many innovations he has brought to the workplace. What is left for him is to build upon and even surpass the accomplishments of his predecessor.”He also brought up a few issues throughout his presentation, which we took very seriously.

“For the success of this current government, for the success of Nigeria, we will continue to work, work with NIMASA, and work with the Ministry of Marine and Blue Economy when we get to the National Assembly,” the lawmaker said.