The much-anticipated disbursement of the Cabotage Vessel Financing Fund (CVFF) is set to commence soon, as the Nigerian Maritime Administration and Safety Agency (NIMASA) has confirmed that the facility will attract a single-digit interest rate.
The Director General of NIMASA, Dr. Dayo Mobereola, gave this assurance during a one-day interactive forum organized for stakeholders on the operationalization of the CVFF. He disclosed that the loan would come with a two-year moratorium and an eight-year repayment tenure, to be managed through twelve Primary Lending Institutions (PLIs).
According to Dr. Mobereola, other key concerns such as insurance, fund security, flexible loan structures, and the reduction of associated fees are being addressed in collaboration with the PLIs to ensure a seamless and beneficial process for indigenous shipowners.
“We are very close to disbursement,” the NIMASA boss declared, noting that the CVFF represents a major opportunity for Nigeria’s maritime sector. He expressed gratitude to President Bola Ahmed Tinubu, GCFR, and the Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola, CON, for their decisive roles in securing the necessary approvals.
“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,” Mobereola stated.
In a bid to ensure accountability, the NIMASA DG said the agency has set up a dedicated Cabotage Secretariat, developed clear eligibility criteria, and partnered with the twelve PLIs to ensure a transparent and efficient disbursement process.
Reacting to the development, the President of the Nigerian Chamber of Shipping, Aminu Umar, alongside other stakeholders, applauded the leadership of Minister Adegboyega Oyetola and the efforts of NIMASA management in pushing the CVFF initiative forward. Former Director General of NIMASA, Temisan Omatseye, who had previously expressed doubts over the fund’s eventual disbursement, also joined in commending the agency’s current strides.
The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act, is designed to support the acquisition of vessels by indigenous operators and stimulate growth in Nigeria’s maritime industry.