The Nigerian Maritime Administration and Safety Agency (NIMASA) has pledged to begin disbursement of the $700 million Cabotage Vessel Financing Fund (CVFF) by August 2025.

Director General of NIMASA, Dr. Dayo Mobereola, who disclosed this during an oversight visit by the House of Representatives Committee on Maritime Safety, Education, and Administration, hinted that the process for the disbursement has reached an advanced stage, in strict compliance with the directive by the Minister of Marine and Blue Economy.

He said, “We are acting in accordance with the directive of the Honourable Minister to ensure indigenous shipowners finally have access to this critical funding. The guidelines have been streamlined based on the Minister’s approval, so beneficiaries can access the funds within three to four months.”

For effective management of the fund, he said NIMASA has expanded the number of Primary Lending Institutions (PLIs) from five to twelve, saying the banks will play a key role in risk assessment, ensuring that only credible, financially capable shipping firms benefit from the revolving fund.

The DG explained that the funding model will see banks contribute 35%, NIMASA 50%, and the remaining 15% as equity from the shipowners.

“By involving the banks, we are ensuring financial discipline and sustainability, which are crucial for this fund to continue long-term,” the DG explained.

Mobereola also emphasized the agency’s insistence on single-digit interest rates and long-term loan tenures—15 to 20 years—to enable indigenous shipowners to compete globally without undue financial pressure.

In addition to funding access, he said NIMASA is working alongside key cargo-generating stakeholders like NNPC, NLNG, and exporters to guarantee cargo availability for Nigerian-owned vessels.

“We are creating a win-win scenario—access to finance and access to business,” Mobereola said.

The Acting Chairman of the committee, Uduak Odudoh, commended the commitment of the agency and expressed satisfaction with the agency’s performance and innovation under Mobereola’s leadership.

“What we have seen today, especially with the clear reduction in maritime crime and the DG’s presentation, gives us confidence in NIMASA’s direction,” Odudoh said. “We will continue to work with the agency and the Ministry to ensure the success of this initiative and the broader goals of the Blue Economy.”