Maritime expert urges caution, market research before $700m CVFF disbursement
By Seun Ibiyemi
A leading maritime expert and President of the Maritime Security Providers Association of Nigeria (MASPAN), Mr Emmanuel Maiguwa, has advised the Nigerian Maritime Administration and Safety Agency (NIMASA) to undertake thorough market research and industry consultation before releasing the much-anticipated $700 million Cabotage Vessel Financing Fund (CVFF).
In a recent statement made available to the press, Maiguwa welcomed the directive issued by the Minister of Marine and Blue Economy, Adegboyega Oyetola, for the immediate commencement of the fund’s disbursement. However, he underscored the need for strategic foresight and adaptability in how the fund is managed.
“It is about time we opened the fund to enable growth in the maritime industry,” Maiguwa said. “But I urge the government to make adequate preparations and allow for flexibility in the guidelines.
“That means putting in place a mechanism that will permit prompt reviews of those guidelines, should any challenges emerge in the first phase of implementation—whether for the government or for shipowners.”
He pointed out that although there are parallels being drawn with the funding model of the Nigerian Content Development and Monitoring Board (NCDMB), the two frameworks are not directly comparable.
“It’s not exactly the same as the NCDMB model, because NIMASA cannot offer a robust market guarantee,” he explained. “The NCDMB is more strategically placed to secure its funds through direct contractual engagements within the oil and gas industry.”
Maiguwa appealed to NIMASA to carry out a detailed market assessment and broaden engagement with stakeholders, in order to guard against poor investment decisions and to ensure the long-term viability of the initiative.
“Since I haven’t come across any comprehensive study outlining the market’s prospects and investment priorities, I encourage the government to improve its communication and consultation with relevant actors. This will deepen their understanding and offer richer insights,” he said.
He further urged the maritime agency to generate and disseminate timely market intelligence, which would help both existing and prospective investors make better-informed choices.
While acknowledging that many private entities may already have their own market data, Maiguwa warned that a fragmented approach could ultimately undermine the industry’s collective progress.
“When these individual strategies and investments are aggregated within a broader national context, they shift the competitive dynamics—not just for the firms involved, but for the entire maritime sector and the country at large,” he added.
The CVFF was established under the Cabotage Act to support indigenous shipowners in acquiring vessels and boosting local capacity in Nigeria’s maritime industry. However, its release has been delayed for years, amid ongoing debate over transparency, criteria, and expected impact.