Gboyega Oyetola
In the last few days, the maritime media has been awashed with news, analysis and special reports on the readiness of the Federal Government vide a ministerial directive to the Nigerian Maritime Administration and Safety Agency (NIMASA) to initiate the process for disbursing the long-awaited Cabotage Vessel Financing Fund (CVFF).
Already, few excited but several doubtful indigenous Shipowners across the country have sent pout discordant voices on the matter. While some are hailing, others are expressing reservations on the true readiness to disburse and whether in truth, if the fund really exist especially now almost every federal agency and department plus ministries are facing serious cash crisis silently (If you know, you know).
Yes, the truth is that the hailed Minister of Marine and Blue Economy, Adegboyega Oyetola, has given out the modalities but what is then holding NIMASA from swiftly giving out terms and conditions or rolling how to access the fund by now. Who will answer this particular question if you ask me?
Business Hilights recalls ab-initio that the CVFF, which was established to promote indigenous ship ownership and capacity in Nigeria’s maritime sector, has faced prolonged delays spanning over two decades. Oyetola’s recent directive is being seen as a decisive move to reposition indigenous shipping and stimulate sectoral growth. Every stakeholder in the industry can attest to the dribbling of former Minister Rotimi Amaechi at a point, queried if the fund does really exit somewhere after all.
Reacting to the development, the 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 “very commendable step” that could mark the beginning of strategic sectoral transformation.
“The Minister’s move is extremely commendable. The important thing is that due process according to the requirements of the Act has to be followed,” Ogbeifun stated, noting that the recently issued marine notice aligns with the legal provisions for disbursement. He expressed hope that the directive would finally resolve the protracted disbursement challenges.
Similarly, the current President of SOAN, Sonny Eja, welcomed the announcement, describing it as “long overdue” but significant. He praised the collaboration with the Bank of Industry (BoI) for the fund’s management and disbursement, adding that the single obligor limit of $25 million is an encouraging provision for beneficiaries.
“I’m equally excited at the fact that they are partnering with BoI. That’s a good development. The single obligor of $25 million is also okay and would enable beneficiaries make good use of the fund,” Eja said.
He, however, urged the government to put in place effective monitoring and recovery measures to ensure the fund is used for its intended purpose.
“Accessing these funds should come with the right criteria and recovery measures. We don’t want these funds to become non-performing loans or give the industry a bad name,” he warned.
Eja further noted that the equity contribution required from beneficiaries is fair, as it fosters a sense of responsibility and commitment.
Also lending his voice, the President of the Nigerian Shipowners Association (NISA), Sola Adewunmi, applauded the Minister’s bold stance, describing it as the first time a Minister would directly instruct NIMASA to commence the disbursement process.
“With the Minister’s pronouncement, let’s hope that things will change. We are all waiting for the guidelines. Once they are released, we’ll be able to see if the process is realistic and inclusive,” he said.
The renewed push for CVFF disbursement has rekindled hope among indigenous operators who have long clamoured for access to the fund to boost fleet expansion and competitiveness within Nigeria’s coastal shipping sector. Stakeholders are now eagerly awaiting the rollout of clear and actionable guidelines that will facilitate fair and transparent access to the fund.
