The Nigerian Maritime Administration and Safety Agency (NIMASA) has denied claims that some of the Primary Lending Institutions (PLIs) involved in the disbursement of the $700 million Cabotage Vessel Financing Fund (CVFF) are demanding cargo guarantees from indigenous ship owners.

The Director-General of NIMASA, Dr Dayo Mobereola, disclosed this on the sidelines of the 2026 World Maritime Day held in Lagos.

Recall that one of the board members of NIMASA had stated that many ship owners may not get the money due to their inability to pass the credit assessment of PLI, such as the lack of cargo guarantee.

According to her, cargo guarantees were essential because they demonstrated the viability of the cash flow that applicants presented to their banks and provided assurance that the financed vessels or businesses would have sufficient cargo to generate revenue.

“Technically, they cannot qualify for CVFF if they don’t have a cargo guarantee. Because it is the cargo guarantee that will back up or show the viability of their cash flow that they’re presenting to their banks,” the board member said.

The NIMASA boss said none of the 12 banks involved in the disbursement of the $700 million CVFF was requesting cargo guarantees from indigenous ship owners.

“For the CVFF disbursement, we have made it very easy. We have ensured that everybody who is an indigenous ship owner can apply for the fund.

“As a ship owner, you will have to apply through the NIMASA CVFF Portal. After that, you have to go to your bank because there is a need for a bank guarantee so that when NIMASA releases the fund to you, the agency will be able to recoup its fund after the loan tenor expires so that other ship owners too can benefit from the loan application,” he stated.

He said the present situation is that some ship owners have applied and are currently discussing with their banks to ensure that they fulfil all the conditions of the banks.

Mobereola said: “Once this is concluded, they will come to us, we will then process the application, and the funds will be released.”

When reminded that some ship owners had complained that commercial banks were demanding cargo guarantees before proceeding with their CVFF applications, the NIMASA director-general said none of the banks involved in the fund’s disbursement would do so.

“I can tell you reliably that none of the 12 banks involved in the CVFF disbursement will request cargo guarantees from ship owners. Most of the indigenous ship owners have been operating for about 20 to 30 years. How have they been operating without cargoes? There is a way they have been doing it, and it is the same system that we are applying,” Mobereola stated.

In his earlier presentation, the Minister of Marine and Blue Economy, Adegboye Oyetola, assured indigenous ship owners of the government’s support and commitment to the disbursement of the CVFF.

“I have directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to work closely with approved Primary Lending Institutions to accelerate the processing and disbursement of the CVFF to eligible beneficiaries. Progress may require patience, but our direction remains firm,” he stated.

Oyetola said the effective deployment of the CVFF has the potential to strengthen indigenous fleets and stimulate investment across the maritime value chain.