By Seun Ibiyemi
The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dayo Mobereola, has confirmed that arrangements are in progress to enable indigenous shipowners gain access to the $700 million Cabotage Vessel Financing Fund (CVFF) within the next four months.
Speaking to maritime journalists on Wednesday, following an oversight visit by members of the House of Representatives Committee on Maritime Safety, Education and Administration, Dr Mobereola announced that the number of Primary Lending Institutions (PLIs) involved in the disbursement of the fund has been expanded to 12 banks.
“We have restructured the guidelines in accordance with the approval from the Honourable Minister of Marine and Blue Economy to ensure that qualified indigenous shipowners can access the funds within three to four months,” he said.
He explained that the process is being designed to involve the banking sector more directly, reducing the burden on NIMASA while ensuring proper risk assessment.
“The banks will conduct the initial due diligence to verify the financial capability of the applicants. They will provide 35 percent of the financing, while NIMASA will cover the remaining 50 percent,” Dr Mobereola stated.
He noted that the fund is structured as a revolving facility, and underscored the importance of due diligence. “The banks are helping us assess the risks. Anyone applying must be a legitimate shipping company with the capacity to trade and to repay. We expect this process to be continuous and sustainable over the years.”
Dr Mobereola also stressed the necessity of offering single-digit interest rates, arguing that such terms would allow Nigerian shipping firms to compete globally. “We are insisting on patient capital. These loans should extend over 15 to 20 years, to allow shipowners to operate without undue financial pressure,” he added.
He further revealed that the agency is working with major cargo stakeholders—such as the Nigerian National Petroleum Company (NNPC), Nigeria LNG, and exporters—to ensure Nigerian vessels have access to consistent business.
“We are ensuring there is cargo available. This is not just about funding vessels but making sure they are put to use,” he said. “It is a win-win, and the shipowners are fully engaged in the process.”
Earlier in the day, the acting Chairman of the House Committee on Maritime Safety, Education and Administration, Honourable Uduak Odudoh, pledged the committee’s full support to NIMASA’s efforts.
“I can say without reservation that we are pleased with what we have seen today,” he said. “From the DG’s presentation, it is clear that maritime security has significantly improved. We have had no incidents of piracy or major maritime crimes in the past three years, which creates a safer environment for commercial operations.”
He praised Dr Mobereola’s leadership since taking office nearly a year ago, noting the innovations and reforms introduced under his watch. “What remains is to build on the achievements of his predecessor and take them even further.”
Odudoh also acknowledged the challenges raised by the NIMASA boss, assuring him that the National Assembly would take them seriously. “We will work hand in hand with NIMASA and the Ministry of Marine and Blue Economy to ensure the success of this initiative and the broader goals of the current administration.”