The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced its readiness to begin the disbursement of the $700 million Cabotage Vessel Financing Fund (CVFF) by August 2025.
This is amazing news for indigenous shipowners who have waited more than 20 years to access the vital fund.
Making the announcement while speaking during an oversight visit by the House of Representatives Committee on Maritime Safety, Education, and Administration in Abuja, NIMASA’s Director General, Dr Dayo Mobereola, revealed that the long wait is about to be over.
According to him, the time couldn’t be more right for indigenous shipowners to finally have access to such crucial fund, and the agency is acting in accordance with the directive of the Minister.
He revealed that every guideline that would be followed was carefully streamlined based on the Minister’s approval, and beneficiaries will be able to access the money from August.
“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 said.
Mobereola disclosed that about 5 – 12 Primary Lending Institutions (PLIs) will be in charge of conducting necessary risk assessments to ensure that only worthy and financially capable shipping firms benefit from the fund.
“To effectively manage the ‘$700 million’ intervention fund, the number of Primary Lending Institutions (PLIs) has been expanded from five to twelve.
According to the funding structure, NIMASA will offer 50% of the capital, banks will contribute 35% to aid financial discipline and guarantee the long-term sustainability of the fund, and the remaining 15% will be needed as equity input from the shipowners.
The agency has also announced that the loans feature single-digit interest rates and long repayment tenures, ranging from 15 to 20 years, to decrease financial pressure and equip indigenous operators with the required skills to efficiently compete on the world stage.
