Indigenous shipowners have commended the Minister of Marine and Blue Economy, Adegboyega Oyetola, for directing the Nigerian Maritime Administration and Safety Agency (NIMASA) to begin the long-awaited disbursement process for the Cabotage Vessel Financing Fund (CVFF).
This directive marks a significant departure from over two decades of administrative inertia and signals a strategic repositioning of Nigeria’s indigenous shipping sector.
Speaking on the development, Managing Director of Starzs Marine and Engineering Ltd and former President of the Shipowners Association of Nigeria (SOAN), Greg Ogbeifun, described the directive as a welcome and commendable move that could drive growth in the industry.
“The Minister’s move is extremely commendable. The important thing is that due process, according to the requirements of the Act, must be followed. I’ve reviewed the marine notice issued and it appears largely in line with the Act,” Ogbeifun said.
He added, “It’s important to ensure that the legislative elements of the Act are also respected.”
Ogbeifun believes that this directive could finally resolve the prolonged issue surrounding the disbursement of the CVFF.
Echoing this sentiment, the current SOAN President, Sonny Eja, praised the Minister’s initiative, noting that although the disbursement is long overdue, it is better late than never.
“This is a welcome development. I’m particularly pleased about the partnership with the Bank of Industry (BoI) for disbursing the fund,” said Eja, who also serves as the Managing Director of Petromarine Nigeria Ltd.
He further applauded the $25 million single obligor cap, describing it as a reasonable limit that allows beneficiaries to deploy funds effectively.
However, Eja emphasized the need for strong oversight mechanisms to ensure the funds are used responsibly.
“I hope the criteria for accessing the funds are sound and that recovery measures are in place to prevent misuse and defaults. Beneficiaries must use the funds judiciously to avoid tarnishing the industry’s image,” he added.
Eja also commended the inclusion of an equity contribution requirement, stressing the importance of borrower commitment to ensure the success of the scheme.
Similarly, the President of the Nigerian Shipowners Association (NISA), Sola Adewunmi, praised Oyetola, noting that this is the first time a minister has explicitly directed NIMASA to initiate the CVFF disbursement process.
“With this pronouncement, we are hopeful. However, we eagerly await the release of the disbursement guidelines to understand how beneficiaries can access the fund,” Adewunmi stated.
As the industry anticipates the rollout of these guidelines, stakeholders remain optimistic that this bold step will finally unlock the potential of the CVFF and rejuvenate indigenous maritime operations in Nigeria.