By Stephen Ubanna
When former President Muhammadu Buhari, gave approval for the disbursement of the Cabotage Vessels Financing Funds, CVFF, to qualified indigenous shipping companies in 2022 for acquisition of vessels to grow the industry nobody had expected that it will drag on till 2025.
Going by the Presidential approval, Muazu Jaji Sambo, an Engineer and the immediate past minister of Transportation before the balkanization of the ministry in 2023, into two by President Bola Ahmed Tinubu : ministries of Transportation and ministry of marine and Blue Economy had confirmed that Union Bank, Zenith, Polaries, United Bank for Africa,, UBA plc, popular,, Pan African Bank, and Jaiz, had been appointed as the Primary Lending Financial Institutions , PLI, for the disbursement of the CVFF.
The then minister of Transportation had given the impression that the ministry has commenced Liaison with, the minister of Finance and Godwin Emefiele, the ex- governor of Central Bank of Nigeria, CBN, who is currently in Department of State Services, DSS, for the implementation of the Presidential directive.
Until he vacated office in May 29, 2023, not much was known the disbursement of the funds to indigenous shipping companies again but Bashir Jamoh, the ex- Director General of NIMASA, was said to have continued to assured the indigenous shipping company operators that there was no cause for alarm, insisting that the agency is ready to implement to implement the Presidential directive on the disbursement of the funds.
The CVFF, which was introduced by the then President Obasanjo in 2003, and funded from the surcharge of 2% of the contract sum performed by vessels engaged coastal trade, monies generated from tariff, fees and fees for licenses and waivers, a sum periodically approved by the National Assembly and interests that accrue from loans granted from the fund. At present, the Fund, which is domiciled in the CBN, has more than the US$350 million while naira component was currently over N16 billion
Jamoh, the former NIMASA, Chief Executive officer, CEO, was said to have taken the matter with Adegboyega Oyetola, a former governor of Osun state and now the minister of marine and blue economy and how far the agency in liaison with the supervisory ministry of Transportation had gone on the issue before the creation of the new ministry to oversee the affairs of the agency and the nation’s other maritime agencies.
IT was not surprising why the former Osun state governor was emboldened to continue from where Engr. Sambo, the immediate past of Transportation, overseeing the agency had stopped to get the issue settled, once and fall all.
dThe minister may have further been encouraged to use his close working relationship with President Tinubu to his own advantage and the measures adopted by the Nigerian Content Development and Monitoring Board, NCDMB, which ha one Felix Omatsola, as the Executive Secretary to disburse the Nigerian Content Development Fund, NCIF, to draw a roadmap for the disbursement of the CFFF.
The NCDMB, controlled NCIF, which was said to have risen to the North American country of the United States, US, over $300 million intended to support Nigerian companies involved in manufacturing, asset acquisition and contract financing was said to have been established in 2017, twenty years after the establishment of the CVFF, to support indigenous shipping companies to aquire ocean-going vessels to compete with the foreign shipping companies which had dominated the nation’s shipping industry over the years.
There are indications that over 70 indigenous companies have so far benefitted from the NCIF, in the nation’s oil and gas industry, while NIMASA Authorities are still waiting for another Presidential approval to go ahead with the disbursement of the CVFF or not.
An informed source had said that that the fund was introduced to unearth the critical funding plays in realizing the opportunities within the oil and gas industry, both within Nigeria and other member countries of the Organization of Petroleum Exporting countries, OPEC, just like what the CVFF, is expected to play in the nation’s maritime industry.
The no nonsense minister of marine and blue economy may have had a feeling that if theNCDMB, an agency of the ministry of Petroleum Resources could disburse its NCIF, with the support of the supervisory ministry of Petroleum Resources, NIMSA, could as well disburse the CVFF, with the full support of the ministry of marine and blue economy, which is currently under his Leadership.
On April 15, 2025, the minister has directed ‘’to commence the process’’ that will lead to the long-awaited disbursement of the CVFF. This directive, according to industry operators marks a significant shift from over two decades of playing politics with the funds, administrative stagnation. They noted that the disbursement of the funds this time around, will usher in a new era of strategic repositioning of the nation’s indigenous shipping’’.
Suffice it to say that past administrations of former Presidents Obasanjo, Goodluck Jonathan and Buhari, had failed to operationalize the fund which had idle over the years at the CBN, until now. President Tinubu, who was incidentally a former a former governor of Lagos may not have wanted to make the same mistake with the Previous Nigerian Presidents but to put the CVFF, into proper use to serve the purpose to which it was established in 2003, by former President Obasanjo. The minister of marine and blue economy who was said to have thrown his weight behind Dayo Mobereola, incumbent Director General, NIMA, may have gladdened the industry operators, when he disclosed recently tat the Nigerian Government has signalled the disbursement of the CVFF, as a deliberate course of correction to show its commitment ‘’to empowering Nigerian maritime operators, bolstering national operators, national competitive and sustainable economic development’’.
Ane elated Oyetola had said that the ministerial directive is not just about disbursing the CFFF, ‘’but it is about rewriting a chapter in the nation’s maritime history’’. He was emphatic that for 20 years, the CVFF, had remained a dormant promise but President Tinubu’s Administration had agreed to bring it life, deliberately, transparently and strategically’’.
Informed sources told The Value News Magazine online that Mobereola led NIMASA, new Management Team in alignment with the ministerial directive has already issued Marine Notice inviting eligible shipping companies to apply for the CVFF.
There are indications that qualified applicants can access up t US$25,000 at competitive interest rates to procure ocean going vessels that meet international safety and performance standards.
Going by the previous arrangement that had been put in place BY Engr. Sambo, A former minister of Transportation for the disbursement of the funds, it will be administered by NIMASA in partnership with the five approved PLIs, ‘’to ensure professional and efficient disbursement’’.
The minister was said to have told those that cares to listen: We are not merely funding the purchase of vessels by indigenous shipping companies but investing in the future where Nigerian shipping companies can stand shoulder -to-shoulder with their foreign counterparts.
Maritime experts had described the planned disbursement of the VVFF, as a ‘’turning point, one that affirms the Nigerian Government’s commitment to local content, economic resilience and maritime sovereignty’’.
They are optimistic that the disbursement of the CVFF will ‘’ yield the desired far-reaching benefits to the country’s indigenous shipping companies’’, further stating that ‘’it will enable growth of a stronger, self -sufficient shipping fleet, generate employment opportunities, stimulate local ship building and repair industries and significantly reduce capital flight associated with foreign vessel chartering’’.
Bolaji Akinola, Special Adviser to the minister of marine and blue economy, had recalled that ever since the ministerial directive for the disbursement of the CVFF, was handed down to NIMASA and the PLIs, stakeholders, who could not hide their feelings have continued to hail him both individually and collectively, describing it as ‘’a watershed development in the nation’s maritime industry’’.
Many believes that with proper implementation, the Funds will help align the nation’s maritime industry forward long- term growth, enhanced logistics, efficiency and global relevance.
The minister may have indicted past administrations over the delay in the disbursement of the CVFF, when he alluded to the fact that President Tinubu’s administration is doing what should have beene years ago, noting that the incumbent President could do so because he has a ‘’clear vision for the country’’.
For those celebrating the planned disbursement of the CVFF, by NIMASA, at the instance of the minister of marine and blue economy, he may have given them a cause to further be cheery about when he declared: A strong indigenous fleet is not just a matter of pride but a strategic national asset. Vintage Oyetola.
