By Seun Ibiyemi
Indigenous shipowners and maritime stakeholders across Nigeria have lauded the Minister of Marine and Blue Economy, Adegboyega Oyetola, for directing the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the long-overdue disbursement of the Cabotage Vessel Financing Fund (CVFF).
This directive, issued on April 15, signals a major turning point after more than two decades of bureaucratic inertia and is being hailed as the beginning of a new chapter for Nigeria’s indigenous maritime sector.The CVFF, created under the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to assist Nigerian shipping companies in acquiring vessels, thereby boosting local participation in coastal trade. Despite the fund’s steady accumulation over the years, successive governments failed to release it, prompting frustration among industry operators.
Reacting to the announcement, maritime stakeholders described the decision as timely, commendable, and critical for revitalising indigenous shipping.
Greg Ogbeifun, Managing Director of Starzs Marine and Engineering Ltd and former President of the Shipowners Association of Nigeria (SOAN), welcomed the development and praised the Minister’s political will.
“The Minister’s decision is extremely commendable. He has taken the bull by the horns, which is exactly what this sector needs,” Ogbeifun said. “It’s crucial, however, that the disbursement follows due process as stipulated in the Act. I’ve reviewed the Marine Notice issued, and it aligns substantially with the Act’s provisions. What remains unclear is whether the legislative backing has been secured, but overall, it’s a commendable move.”
Ogbeifun expressed optimism that the initiative would finally bring an end to the protracted delay in accessing the fund.
SOAN President Sonny Eja also applauded the Minister’s move, describing it as “long overdue but most welcome.” Eja further praised the government’s decision to partner with the Bank of Industry (BoI) in the disbursement process.
“People have been talking about this for years. It’s great to see the government finally taking action. Partnering with BoI is a positive step,” he said. “The $25 million single obligor limit is reasonable and should enable serious operators to make meaningful investments.”
Eja, who also heads Petromarine Nigeria Ltd, urged the government to establish robust frameworks to ensure responsible utilisation and recovery of the funds.
“It’s vital that the right criteria are in place for accessing these funds and that proper checks ensure the money isn’t diverted or mismanaged,” he said. “This initiative will only be sustainable if beneficiaries are held accountable. The equity contribution requirement is also a step in the right direction—it ensures borrowers have skin in the game.”
Sola Adewunmi, President of the Nigerian Shipowners Association (NISA), echoed similar sentiments. He noted that this is the first time a Minister has explicitly directed NIMASA to begin disbursement, marking a significant milestone.
“With this directive, we are hopeful things will change. But the next step is for the guidelines to be released so that prospective beneficiaries understand the process,” Adewunmi said.
The Nigeria Maritime Law Association (NMLA) also commended the government’s decision, calling it a bold and long-awaited step. Legal practitioners in the maritime sector expressed hope that the move would unlock much-needed growth in the industry.
Senior Advocate of Nigeria (SAN) Mike Igbokwe described the government’s action as “encouraging,” emphasising that previous administrations had failed to activate the fund.
“The CVFF, funded through a mandatory two per cent surcharge on contracts involving vessels operating in Nigerian coastal trade, was created to support the local shipping sector,” Igbokwe explained.
“It also draws from fines, licensing fees, and other charges sanctioned by the National Assembly. Every stakeholder in Nigeria’s Cabotage regime contributes to this fund. It must not be left idle in banks.”
Igbokwe urged the government to start disbursement promptly, even if large vessels cannot be acquired immediately.
“The fund can be used to procure barges for transhipment and other critical logistics,” he said.
Former NMLA President, Chief Chidi Ilogu (SAN), stressed that owning vessels is essential for Nigeria’s ambition to become a regional shipping hub.
“Without an indigenous fleet, foreign operators will continue to dominate our waters. The CVFF can help us acquire medium-sized vessels for West African coastal trade,” Ilogu said.
He noted the strategic potential of the Lekki Deep Sea Port, saying it could become a game-changer for local shipping if paired with CVFF-backed investments.
“We’ve talked about this for too long. Now, we need real implementation,” he said, calling for alignment between the Ministry of Transportation and the Ministry of Marine and Blue Economy to avoid inter-agency conflict.
Ilogu also urged young maritime entrepreneurs to take full advantage of the opportunity.
Funke Agbor, current President of the NMLA, also welcomed the move, saying it could significantly strengthen the maritime industry. She pointed out that the fund’s utilisation would not only empower local shipowners but also create critical sea-time opportunities for Nigerian cadets—a long-standing concern in maritime training.
Minister Oyetola, in his announcement, said the disbursement reflects a strategic commitment by President Bola Tinubu’s administration to reposition the maritime sector.
“For over 20 years, the CVFF remained a dormant promise. Today, we are bringing it to life, deliberately, transparently, and strategically,” Oyetola said.
NIMASA has issued a Marine Notice inviting eligible Nigerian shipping firms to apply for funding. Qualified applicants can access up to $25 million each at competitive interest rates to acquire vessels that meet international standards.
The fund will be administered in partnership with vetted Primary Lending Institutions (PLIs), ensuring the process is handled professionally and efficiently.
“We are not simply financing ships; we are building the future of Nigerian maritime. This decision affirms our commitment to economic resilience, local content, and maritime sovereignty,” Oyetola added.
The Minister noted that the impact of the CVFF would be far-reaching, with benefits including a strengthened indigenous fleet, job creation, stimulation of local shipbuilding and repair industries, and a significant reduction in capital flight caused by reliance on foreign vessels.
With policy now aligned and momentum building, the maritime sector is watching closely for implementation. For Nigeria’s shipowners, the waves are finally beginning to shift in their favour.