It is a monumental betrayal that twenty-one years after the establishment of the Cabotage Vessel Financing Fund (CVFF), not a single Nigerian ship owner has benefited from its noble promise. Conceived under the Coastal and Inland Shipping Act of 2003—popularly known as the Cabotage Act—the CVFF was envisioned as a lifeline for indigenous ship owners, enabling them to acquire vessels and compete favourably in Nigeria’s maritime sector. Instead, the fund has become a symbol of governmental opacity, broken promises, and a dereliction of duty that borders on economic sabotage.
The CVFF is funded by a mandatory two-percent contribution from ship owners operating in Nigeria’s coastal and inland waterways. It was specifically designed to empower Nigerian operators with low-interest loans for acquiring vessels, thus fostering local participation in maritime trade. The broader objective was to fortify Nigeria’s Cabotage regime, reserving trade within coastal waters for indigenous operators and catalysing the development of a robust maritime sector.
Regrettably, the very institutions charged with this mission—the Nigerian Maritime Administration and Safety Agency (NIMASA) and its supervising Ministry of Marine and Blue Economy—have abdicated their responsibilities. Instead of empowering local ship owners, they have compounded their struggles. The persistent failure to disburse the CVFF is not merely a lapse in governance; it is a betrayal of Nigerian ship owners and an affront to the spirit of the Cabotage Act.
For over two decades, NIMASA and its supervising ministry have repeatedly assured Nigerians that the CVFF remains intact. But these reassurances ring hollow. Time and again, they have promised deadlines for the disbursement of the funds—no fewer than 45 times over the past decade—only to backtrack without explanation or apology. This pattern of deception has not only eroded trust but also devastated indigenous shipping companies, many of which have folded under the weight of neglect.
The inability of Nigerian shipping companies to access the CVFF has left them at the mercy of foreign operators, who dominate Nigeria’s coastal trade with impunity. This is not just an economic tragedy; it is a national disgrace. The Cabotage Act of 2003 was meant to reserve this space for Nigerians, yet today, local operators are reduced to spectators in their own waters, unable to compete with better-equipped foreign rivals.
The opacity surrounding the actual amount in the CVFF account exacerbates the problem. Despite recent assurances by NIMASA that the funds are safe in the Treasury Single Account at the Central Bank of Nigeria, no details have been provided about the exact balance. Such evasiveness only fuels suspicions of mismanagement. This suspicion gained credence on December 15, 2021, when the House of Representatives accused former Minister of Transportation Rotimi Amaechi and NIMASA of diverting $195 million from the CVFF to fund the controversial Deep Blue Project. These allegations, left unaddressed, cast a long shadow over the credibility of NIMASA and its parent ministry.
The current management of NIMASA, under Dr. Dayo Mobereola, and the Minister of Marine and Blue Economy, Alhaji Adegboyega Isiaka Oyetola, must recognize the weight of their mandate. It is not enough to merely affirm that the funds are intact. The Nigerian people, especially the ship owners whose contributions built the CVFF, deserve full transparency. How much money has accrued into the CVFF account? What has been done with the funds over the past 21 years? And most importantly, when will the funds finally be disbursed?
NIMASA and the Ministry must set a definite timeline for the disbursement of the CVFF, with clear guidelines and accountability mechanisms. The era of broken promises and evasion must end. The stakes are too high for further dithering: Nigeria’s maritime sector is haemorrhaging, its ship owners are gasping for air, and the country is losing billions in potential revenue to foreign interests.
The story of the CVFF is a cautionary tale of how government inertia and opacity can derail visionary policies. But this narrative can still be rewritten. Dr. Mobereola and Minister Oyetola, the ball is in your court. If you cannot muster the will to fulfil the purpose of the CVFF, then you must step aside for those who can.
The CVFF is not just a fund; it is a symbol of hope for Nigeria’s maritime future. To continue hoarding it is to crush the dreams of Nigerian ship owners and undermine the nation’s economic sovereignty. Enough of the games. Enough of the deception. The time has come to open the books, unlock the funds, and honour the promises made.
Let the CVFF breathe, or let the system collapse under the weight of its shame.
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