By Stephen Ubanna
After several years of behind the scene maneuvering and pressures from the Indigenous shipowners on the Nigerian Maritime Administration and Safety the agency, NIMASA, which had secured the ministerial approval for the disbursement of the idle Cabotage Finance Funds, CFF, Dayo Mobereola, the agency Director General, had said that there is no going back in opening the portal for the disbursement of the Fund to qualified indigenous shipowners in August 205.
The funds which had grown from nothing 2003, when it was first established by former President Olusegun Obasanjo appears t to have earned enough money to be disbursed to the qualified indigenous shipowners to acquire ocean-going vessels or even build new ship that the loan can afford in the Asian countries of South Korea or China, depending on tonnage.
There have been conflicting figures in the CVFF, account in the Central Bank of Nigeria, CBN, under the close watch of Olujimi Michael Cadoso, from the Norh American country of the United States, US, $350m, $400m to $700 million to be accessed by the qualified indigenous shipowners.
. Until his exit from office as the minister of Transportation under the former President Muhammadu Buhari, Engr. Mu’azu Jaji Sambo, had said the Fund was US$350 million and an additional N16 billion, as May 29, 2025. NIMASA, Authorities on its part had said that the amount in the CVFF, account had hit the US$360 mark while Adeboyega, Oyetola, a former governor of Osun state had put the amount in the CVFF, account at CBN, at US$400 m, while the House Committee on Maritime Safety, Administration and Education had put the amount in the CVFF , account at CBN, at US$700m. For now, only CBN, officials are in a position to give the actual amount in the CVFF, that would be disbursed by the PLIs to the indigenous shipowners.
Notwithstanding the different figures by bandied about as the amount in the in the CVFF, account, Dayo Mobereola, Director General, NIMASA, had said late last April, that there is no going back on the disbursement of the funds to the qualified indigenous shipowners in August 2025.
As a prelude for the disbursement of the funds without further delay, the Maritime regulatory had expanded the number of PLIs for the disbursement of the funds from the initial to five, approved by the Buhari’s administration to 12 banks to facilitate process.
The 12 selected Money Deposit Banks, MDB, that were said to have been given the nod by NIMASA Management with the approval of the minister to disburse the CVFF, US, over $700 m in CBN, account, include Fidelity Bank, Stanbic IBTC, United Bank for Africa, UBA plc, ppular, Pan African Bank, Zenith Bank, Zenith Bank, Lotus Bank, Union Bank, First Bank, Jaiz Bank, Sun Trust Bank and Globus Bank.
NIMASA, the agency overseeing the disbursement of the CVFF, may not have stopped there as it was said to have initiated discussions with the banks, to settle some knotty issues that may affect the exercise like interest rate to be charged the beneficiaries, insurance, fund security, and flexible tenures for the loan as well as the reduction of other sundry fees to the barest minimum at subsidized rates. Other pressing issues that were said to have been perceived may forestall the disbursement of the CVFF, were said to have also been addressed by the parties at their various meetings.
Giving that the PLIs, which are into business to make profits and not run at a loss, may have informed they have agreed ‘’to offer single -digit’’ interest rates to applicants jostling for the CVFF, loan and which must be fully repaid in eight years, starting from the date of disbursement.
The various closed -door meetings between officials of NIMASA and the PLIs, was said to have been quickly followed by the maritime stakeholder’s forum in Lagos, the nation’s commercial nerve center on May 12, 2025, ahead of the disbursement of the funds in August 2025.
The maritime regulatory agency may have been encouraged to organize the stakeholder’s forum
To pass information to the industry stakeholders and to prevent what led to the collapse of the erstwhile US$90 million, Ship Acquisition and Ship Building Fund, SASBF, to repeat itself, with the management of the CVFF.
The importance attached to the stakeholder’s forum was said to have encouraged members of the three different indigenous shipowners Associations comprising of Indigenous Shipowners Association of Nigeria, ISAN, Shipowners Association of Nigeria, SOAN, and Nigerian Shipowners Association, NISA , including marine engineers, ship Captains, master mariners and other professionals to participate at the much advertised forum to listen t what may have given to what Mobereola, the NIMASA, Chief Executive Officer, CEO, had to say , as regards to the planned disbursement of the funds .
Some prominent shipowners who were said to have made significant contributions to the nation’s maritime industry like Greg Ogbeifun, who is Managing Director of Starzs Marine, Engineering limited, Petromarine Nigeria ltd led by Sunny Eja, Oceangate led by Ayorinde Adedoyin and several other key players were said to be at the NIMASA organized stakeholders Forum in Lagos.
the NIMASA, Authorities, which had the backing of Oyetola, the minister of marine and blue economy, who has the ear of President Bola Ahmed Tinubu, to hold the all-important forum was said to have made it clear Toth shipowners that ‘’a clear eligibility criteria would be developed to facilitate the disbursement process that must be followed by the 12 PLIs, partnering with it, is partnering with it.
He may have gladdened the heart of the indigenous shipowners at the stakeholders’ forum when he assured them that there was no cause to worry about the involvement of the PLIs in the disbursement of the CVFF over alleged exorbitant interest rate that may be charged by the banks in disbursing the loans, stressing that ‘’they would benefit from the single -digit interest rate on the funding of their ship acquisition or ship building project from any foreign shipyard but he had said that the interest rates will be initiated through the 12 selected PLIs.
Asa prelude for the disbursement of the CVFF, the NIMASA Authorities and the 12, selected PLIs, according to an informed source were said to have concluded plans, ‘’to unveil an online portal, to Forestal past mistakes that was said to have led to the collapse of the SASBF, in the past years.
Unlike in the previous arrangement where beneficiaries of similar SASBF, had been said to have diverted funds to other areas of their business instead of using it for the purpose to which it was meant for , ‘’acquire oceangoing vessels to boost the indigenous shipping capacity to compete with the foreign shipping lines in carrying of the nation’s cargoes.
Mobereola, the NIMASA, CEO, was said to have sounded it loud and clear at the stakeholders’ forum that’’the agency will go all out to monitor the fund utilization to ensure that the beneficiaries use it to achieve the intended objectives which is to acquire and build ocean-going vessels’’.
He was said to have repeatedly stressed at the recent industry stakeholders in Lagos of the importance of the CVFF, and the roles played by duo, President Tinubu and Oyetola, the incumbent minister of marine and blue economy in ensuring the immediate disbursement of the funds and why the beneficiaries must not give room for them to have rethink on the issue.
There is no gainsaying the fact that qualified Nigerian shipowners, are eligible to apply for the CVFF which consists of 50%contribution from the Federal Government, 35% equity contributions from the PLIs and 15% equity from the successful applicants
The CVFF, the Value News on line Magazine was informed is expected to be disbursed to the successful applicants within 91 days after the local hip owner must have fulfilled all the necessary criteria that had been set out for the approval of the loan.
Already, the NIMASA, Authorities, were said to have established a dedicated Secretariat Cabotage Unit at the agency Headquarters at Victoria Island, Lagos, the nation’s Commercial nerve centre and center of shipping in Nigeria to help applicants with information on how to go about the CFF, loan without failing.
The NIMASA, helmsman, who could not hide his feelings was said to have reminded the industry stakeholders that President Tinubu’s Leadership with the support of Oyetola, the minister of marine and blue economy made it possible for the agency to secure the necessary approvals for the disbursement of the CVFF, meaning that without their intervention it would not have been possible to think of the disbursement of the CVFF, this year.
He is optimistic that if the funds are properly utilized by the beneficiaries without diverting it to other irrelevant areas,’’ it will play a transformative role for the nation’s maritime industry as the indigenous shipowners would be able to compete favorably with the foreign shipping Lines, boost local content in the country’s maritime sector, create job opportunities for Nigerian Seafarers and further strengthen ancillary maritime services’’.
Apart from putting a close tab on the indigenous ship owners, numbering about 100, jostling for a share of the CVFF, Mobereola, also have a word of advice for the PLIs, ‘’to ensure transparency and accountability in the disbursement process to avoid giving room to critics and aggrieved parties to make mockery of the entire process.
In spite of the fact that the PLIs, are yet to initiate the process for the disbursement of the much-talked about CVFF, Aminu Umar, President, Nigerian Chamber of Shipping, and others, who were said to have taken advantage of the stakeholders Forum, to give kudos to the minister of marine and blue economy and Mobereola, led NIMASA, Management for their efforts in facilitating the Disbursement of the idle CVFF would want the PLIs, to expedite action in clearing the way for the disbursement of the CVFF, loan to begin.
. Even Temisan Omatseye, a former Director General of the agency who had doubted the realization of the objectives of the CVFF, was said to have also joined the industry stakeholders in commending the present NIMASA Management Team and the former Osun state governor for their steadfastness and commitment in facilitating the disbursement of the CVFF.
Nigerians are watching on the sidelines to see how the CVFF, disbursement exercise would go between now and December 2205.
