The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced plans to commence the disbursement of the $700 million Cabotage Vessel Financing Fund (CVFF) by August 2025.
This marks a major milestone for indigenous shipowners who have awaited access to the fund for over two decades.
NIMASA’s Director General, Dr Dayo Mobereola, made the announcement on Wednesday in Abuja during an oversight visit by the House of Representatives Committee on Maritime Safety, Education, and Administration, according to the News Agency of Nigeria (NAN).
The NAN report quoted Mobereola as saying, “We are acting in accordance with the directive of the Minister to ensure indigenous shipowners finally have access to this critical funding. The guidelines have been streamlined based on the Minister’s approval, so beneficiaries can access the funds within three to four months.”
He added: “To effectively manage the ‘$700 million’ intervention fund, the number of Primary Lending Institutions (PLIs) has been expanded from five to twelve.”
Mobereola explained that these financial institutions will be responsible for conducting risk assessments and ensuring that only credible and financially capable shipping firms benefit from the fund.
Under the funding structure, NIMASA will provide 50% of the capital, while banks will contribute 35%. The remaining 15% will be required as equity input from the shipowners. The involvement of banks is expected to enforce financial discipline and ensure the long-term sustainability of the fund.
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NIMASA has also mandated that the loans feature single-digit interest rates and long tenures ranging from 15 to 20 years to reduce financial pressure and enable indigenous operators to compete more effectively on the global stage.
- Mobereola further noted that, in addition to the financing mechanism, NIMASA is collaborating with major cargo-generating entities such as the Nigerian National Petroleum Corporation (NNPC), Nigeria LNG Limited (NLNG), and exporters. This partnership aims to guarantee cargo availability for Nigerian-owned vessels, combining access to capital with business opportunities for local operators.
- The Acting Chairman of the House Committee, Uduak Odudoh, expressed confidence in NIMASA’s progress and highlighted the broader efforts of the Ministry to improve maritime safety and develop the sector. He pointed out that, although the CVFF was established over 20 years ago, it had faced repeated delays. With renewed momentum and clearer direction from the Ministry, indigenous shipowners now have realistic prospects of accessing meaningful financial support by the third quarter of 2025.
The CVFF is a key component of Nigeria’s broader blue economy strategy, which seeks to empower local shipping businesses, reduce dependence on foreign-owned vessels, and stimulate job creation across the maritime industry.
