Boat Operators Demand Cabotage Act Amendment To Access $700m CVFF

Boat operators operating in the nation’s inland waterways sector have demanded the amendment of the Cabotage Act to enable indigenous boat owners access the Cabotage Vessel Financing Fund (CVFF).

Speaking to Journalists, the operators noted that over the past two decades, the CVFF was originally intended to promote indigenous ship ownership and provide credit facilities to maritime operators, including those operating inland water transport.

They argued that if the fund is insufficient to acquire large ocean-going vessels due to high capital requirements, it would be pragmatic to allocate part of it towards inland waterways, where the impact on safety and operational capacity would be more immediate and significant.

According to the Head of Desk, Corporate Communication and Strategy at Sustainable Waterways Awareness Advancement Advocacy (SWAAADO), Chief Gold Raymond, said that with inflows into the CVFF valued at around $700 million, they noted that its proper deployment could substantially strengthen indigenous capacity, improve safety standards, and restore public confidence in Nigeria’s water transportation system.

Gold noted that over the past two decades, the CVFF was originally intended to promote indigenous ship ownership and provide credit facilities to maritime operators, including those operating inland water transport.

He noted that a recent research report commissioned by SWAAADO revealed that approximately $700 million has been accumulated for CVFF, highlighting that inland ferry services and coastal mass transportation fall within the mandate of the CVFF, supporting the inclusion of local boat operators under the scheme.

“The coastal inland shipping lines capitalised and defined sea areas for post-worldly purposes as promoting indigenous ship ownership and providing credit facilities to maritime operators, including inland operators. Perseverance ferries for mass transportation clearly fall within this mandate, especially for coastal and inland waterways.”

He emphasised that this clearly supports the inclusion of local boat operators under the fund’s provisions.

Also speaking, a board member Waterfront Boat Owners and Transporters Association of Nigeria (WABOTAN), Larry Osaeren, supported the call for amendment of the Cabotage Act.

He stated that boats used on inland waterways and coastal routes are a conventional means of transportation and should not be exempted from benefiting under the law.

He described the frequent loss of lives in boat mishaps as unacceptable, noting that the death of even one breadwinner can destabilise an entire family.

Osaeren further argued that if the fund may not be sufficient to acquire large ocean-going vessels due to high capital requirements, it would be pragmatic to channel part of it towards strengthening inland water transport, where the impact would be more immediate and visible.