The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced plans to begin disbursing the long-awaited Cabotage Vessel Financing Fund (CVFF) by August 2025, in line with a directive from the Minister of Marine and Blue Economy, Adegboyega Oyetola.

The agency’s Director General, Dr. Dayo Mobereola, disclosed this during an oversight visit by the House of Representatives Committee on Maritime Safety, Education, and Administration on April 23, 2025.

Mobereola stated that the disbursement process is now at an advanced stage, adding that the agency has streamlined the guidelines to ensure indigenous shipowners gain access to the funds within three to four months.

“In line with the Minister’s directive, we are taking concrete steps to ensure access to this critical funding for indigenous operators,” he said.

To ensure a more efficient disbursement process, NIMASA has increased the number of approved Primary Lending Institutions (PLIs) from five to twelve. Under the funding model, the banks will provide 35% of the loan, NIMASA will contribute 50%, and shipowners are to provide the remaining 15% as equity.

Mobereola also stressed the importance of sustainability, noting that the agency insisted on single-digit interest rates and a 15–20-year repayment period to allow local operators to compete effectively.

In a bid to complement the financing with cargo opportunities, NIMASA is collaborating with major cargo providers such as the Nigerian National Petroleum Company (NNPC), Nigeria LNG, and other exporters to guarantee cargo availability for Nigerian-flagged vessels.

The House Committee commended the agency’s efforts. Acting Chairman, Hon. Uduak Odudoh, expressed satisfaction with the progress and the strategic direction of the agency.

“The DG’s presentation and the evident improvement in maritime safety give us renewed confidence in NIMASA’s leadership,” Odudoh said.

The CVFF, established over two decades ago to support indigenous shipping, has faced multiple delays. However, with Oyetola’s firm directive and NIMASA’s commitment, the fund is expected to finally be disbursed by the third quarter of 2025.