• Nigerian fleet collapse from 24 to four after 18 years
• Africa needs regional cooperation to boost seaports growth, says NPA Boss
Federal Government’s long-delayed Cabotage Vessel Financing Fund (CVFF) disbursement to indigenous shipowners is costing the country a yearly freight revenue loss estimated between $6 billion and $8 billion, with over 4,000 Nigerian seafarers unemployed.
The Ministry of Marine and Blue Economy and the Nigerian Maritime Administration and Safety Agency (NIMASA) have earlier given August 2025 as the date for disbursements of the CVFF fund to commence.
Stakeholders, who gathered at the PortNews Summit/30th Anniversary in Apapa Lagos on Thursday, themed, “Nigeria’s Shipping Carriage Gaps: CVFF and the Fading Manpower”, also lamented the collapse of Nigeria’s once-promising indigenous fleet, which has dwindled from 24 active vessels in 2005 to fewer than four by 2024, leaving foreign carriers to handle 95 per cent of Nigeria’s cargoes.
The Head of Research, Sea Empowerment and Research Centre (SEREC), Dr Eugene Nweke, who gave an analytical review of the lecture theme, stressed that over 90 per cent of Nigeria’s trade moved by sea, yet indigenous fleet participation accounted for less than five per cent, describing the imbalance as a reflection of governance failures and not legislative gaps.
Nweke said while the CVFF, created in 2003 to finance vessel acquisition by Nigerian shipowners, remained dormant after 18 years, over $350 million had been collected, with no single major disbursement made.
The chief analyst also stated that of the over 4,000 trained seafarers, the majority remained unemployed due to limited sea-time opportunities and the absence of a national fleet to absorb cadets.
He said many are migrating to foreign vessels, accelerating the erosion of the country’s maritime manpower base.
The President of the African Shipowners Association (ASA), Captain Ladi Olubowale, condemned the non-disbursement of the CVFF to indigenous shipowners, who, he lamented, could not afford the required 15 per cent equity for the purchase of vessels as outlined in the CVFF Disbursement guidelines.
Speaking earlier, the Publisher of PortNews, Mr Wale Oni, described as “unwise” the continuous hoarding of the CVFF fund estimated at $800 million for so long without disbursement it for the purpose it was generated.
Meanwhile, the Managing Director of the Nigerian Ports Authority (NPA), Dr Abubakar Dantsoho, has emphasised that the interconnectedness and interdependence of African nations make cooperation an essential precondition for the collective advancement of seaports across the continent.
Dantsoho made this known at the closing ceremony of the 45th Annual Council of the Port Management Association of West & Central Africa (PMAWCA) held in Pointe-Noire, Congo.
Speaking in his capacity as President of PMAWCA, Dantsoho said the level of enthusiasm, goodwill and altruism displayed throughout the technical sessions and deliberations convinced him that ports within the sub-region were well-positioned to confront future challenges with renewed confidence.
