$700m Cabotage Fund To Be Disbursed At Single Digit Interest Rate – NIMASA

The Nigerian Maritime Administration and Safety Agency (NIMASA) on Monday, said that the Cabotage Vessels Financing Fund (CVFF), would be disbursed to indigenous Shipowners at single-digit interest rate.

This was disclosed by the director general of NIMASA, Dr Dayo Mobereola, at a one day stakeholders’ forum on the operationalisation of CVFF, held in Lagos, on Monday.

According to Mobereola, the CVFF is not a grant, but a strategic investment in Nigeria’s maritime future, thereby urging all prospective applicants to follow the established procedures through partner financial institutions.

“The primary objective of bringing you together today is to formally announce and discuss the imminent disbursement of the CVFF, and to demonstrate the established clear frameworks for transparent, efficient, and impactful fund utilisation that will empower indigenous shipowners.

“I urge all prospective applicants to follow the established procedures through our partner financial institutions. The CVFF is not a grant program but a strategic investment in Nigeria’s maritime future. It is a loan with single digit interest. We will monitor fund utilisation to ensure they achieve the intended objectives.”

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The NIMASA boss further stated that the agency has secured necessary approval that would facilitate the disbursement of the fund to successful beneficiaries.

He also stated apart from boosting local content in the maritime sector, the CVFF disbursement would also create employment opportunities for Nigerian seafarers.

“The CVFF was established under the Coastal and Inland Shipping Act of 2003 to provide financial support to indigenous shipowners for vessel acquisition and capacity development. Despite nearly two decades of regulatory challenges and bad experience of the past, I am delighted to announce that under President Bola Tinubu’s leadership and with the support of the minister of Marine and Blue Economy, Gboyega Oyetola, we have secured the necessary approvals for disbursement.”

“This disbursement will be transformative for our industry as it stands to empower indigenous shipowners to compete favourably, boost local content in the maritime sector, create employment opportunities for Nigerian seafarers and strengthen ancillary maritime services.”

Speaking earlier, the executive director, Maritime Labour and Cabotage Services, Jubril Abba, said the disbursement of CVFF underscores the agency’s commitment to empowering local shipowners and operators.

He also disclosed that the disbursement would reduce the nation’s reliance on foreign vessels by providing accessible financing options.

“The CVFF is designed to benefit indigenous ownership of marine assets that would be deployed to boost activities within the Nigerian Cabotage space. It is with a deep sense of appreciation that we recognise the presence of shipping companies and Shipowners who have taken time out of their tight schedules to honour our invitation to this engagement session. Your presence here, we are certain, would add excellent value to the insightful discussions.

“This also underscores NIMASA’s unwavering commitment to empowering local shipowners and operators, stimulating domestic maritime commerce, and reducing our reliance on foreign vessels by providing accessible financing options.”

“The potential of the nation’s Marine and Blue economy when harnessed, would be a significant contributor to the nation’s GDP and catalyse activities in other sectors that would lead to rapid economic growth and development, in line with the renewed Hope Agenda of this Administration.”

Abba, however, called on stakeholders to rally round in achieving a shared vision for a vibrant and self-reliant maritime sector.

“The clarion call is for collaborative partnerships to ensure the success of this journey to harness the full potential of our domestic shipping and ensure the sustainable growth of the maritime industry.

“As I close my remarks, we call on all stakeholders to rally round NIMASA as we pledge our renewed dedication, innovation, and partnership in achieving a shared vision for a vibrant and self-reliant maritime sector.”