NIMASA Activates $25m Vessel Fund with 12 Banks After 20-year Delay
The Nigerian Maritime Administration and Safety Agency (NIMASA) has launched the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF), with 12 designated commercial banks set to manage loans of up to $25 million for eligible shipowners.
NIMASA’s Director-General, Dr Dayo Mobereola, announced during a virtual stakeholders’ meeting, confirming presidential approval and backing from the Minister of Marine and Blue Economy, Mr Adegboyega Oyetola.
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The CVFF, established under the 2003 Cabotage Act, aims to strengthen indigenous participation in the maritime sector by providing dollar-denominated loans at single-digit interest rates with an eight-year repayment period. Beneficiaries must contribute equity and purchase vessels no older than 12 months, strictly adhering to Nigerian ownership and operational criteria.
Banks, including First Bank, Zenith, Fidelity, UBA, Jaiz, and Lottos Bank, will administer the fund. Financial consultant Yusuf Buhari disclosed that the CVFF would fund up to 50 per cent of project costs, capped at $25 million per beneficiary.
Legal Consultant Adedoyin Afun emphasised the fund’s exclusive focus on Nigerian citizens, while Zenith Bank’s Managing Director, Aburime Ehimare, recommended a post-disbursement monitoring framework to ensure compliance.
Mobereola underscored that the CVFF is not a grant but a strategic investment in Nigeria’s maritime future. Executive Director of Cabotage Services, Jubril Abba, added that the facility is expected to unlock massive job creation, energise coastal shipping, and revitalise ancillary maritime services.
“This marks the end of delays and the start of a transformative era for local shipping,” Mobereola said.
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