By Nigerian shipowners have called on the federal government to ensure that the much-anticipated $360 million Cabotage Vessel Financing Fund (CVFF) is disbursed at a single-digit interest rate. They argue that this will boost indigenous capacity, reduce capital flight, and strengthen Nigeria’s maritime industry. The CVFF, established under the Cabotage Act of 2003, has faced delays for over two decades.
Last week, the Minister of Marine and Blue Economy, Adegboyega Oyetola, directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence disbursement, sparking renewed optimism among local operators. However, concerns remain about high commercial lending rates, which currently hover between 16 and 30 percent in Nigeria, a situation stakeholders say could defeat the fund’s purpose if not properly addressed.
“The CVFF to Nigerian shipowners at a single-digit interest rate will create abundant growth opportunities, boost capacity building, local content development and develop Nigeria as a maritime nation in Africa,” stated Captain Ladi Olubowale, President of the African Shipowners Association (ASA) and managing director of Seamate Maritime Integrated Services Limited. He also praised the government’s decision to involve banks in the disbursement process to promote transparency.
Olubowale emphasized that involving banks would eliminate dubious borrowing practices and ensure accountability. “Transparency is very key. Things have to be done in line with the international best practices. CVFF is an opportunity for ship ownership. All processes and conditions must be met. Bank involvement now will stop the failure of experience as there will be a committee to check and scrutinise all intending borrowers,” he said.
Speaking further, Olubowale revealed that ASA Nigeria’s members are fully prepared for the disbursement, with vessels certified by the International Maritime Organisation (IMO) and a robust database identifying where their cargos operate. He noted that ASA’s strategy focuses not just on ship ownership but also on connecting supply value chains across Africa’s maritime corridors.
While describing the CVFF disbursement as a dream come true for Seamate Maritime, Olubowale stressed the need for readiness, execution, and capacity-building. “Disbursement is not only the solution. We need to bring back our master mariners to classrooms to nurture young people who will drive the fleets. If Nigeria stands, the rest of Africa stands,” he concluded.
