SHIPOWNERS HOPEFUL AS CVFF ENTERS IMPLEMENTATION PHASE

Nigerian shipowners have expressed optimism over the commencement of the implementation phase of the Cabotage Vessel Financing Fund (CVFF), describing it as a long-awaited boost to indigenous participation in the maritime sector.

The Nigerian Maritime Administration and Safety Agency (NIMASA) on Friday confirmed that the first tranche of funds under the revamped CVFF framework has been approved for disbursement to qualified operators. The development follows years of advocacy by stakeholders for the effective utilisation of the fund, which was established to support the acquisition and maintenance of vessels by Nigerian shipping companies.

President of the Nigerian Shipowners Association (NISA), Mr. Temisan Omatseye, welcomed the progress, noting that the fund will address the chronic shortage of indigenous tonnage and reduce reliance on foreign vessels for cabotage trade. “This is a defining moment for Nigerian shipowners. With the CVFF now entering full implementation, we are hopeful for increased local capacity, job creation, and economic empowerment in the maritime industry,” Omatseye stated.

The CVFF, generated from a 2% surcharge on cabotage transactions, has accumulated substantial resources over the years. Under the new guidelines, funds will be channelled through designated Primary Lending Institutions (PLIs) with clear criteria for eligibility, repayment terms, and monitoring mechanisms to ensure transparency and accountability.

NIMASA Director General, Dr. Dayo Mobereola, assured stakeholders of the agency’s commitment to the success of the programme. “The implementation phase marks the beginning of a new era. We will ensure that the fund is utilised strictly for its intended purpose of developing Nigerian shipping capacity,” he said.

Maritime experts believe the effective deployment of the CVFF could significantly enhance Nigeria’s compliance with cabotage laws and boost the nation’s blue economy. However, they cautioned that strict governance and regular performance audits will be essential to prevent misuse.

Shipowners have pledged to work closely with the government to ensure the success of the initiative, which is expected to unlock new opportunities for investment, training, and job creation in the maritime sector.