FG Urges Quick Disbursement of $700m CVFF for Shipowners

The Federal Government of Nigeria has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to accelerate the processing and disbursement of the $700 million Cabotage Vessel Financing Fund (CVFF). Currently, only one of the 20 applications submitted to participating banks has reached the approval stage.

Adegboyega Oyetola, the Minister of Marine and Blue Economy, stated that NIMASA has received a total of 92 applications for the fund, with 20 forwarded to the 12 approved Primary Lending Institutions (PLIs). The CVFF, established under the 2003 Cabotage Act, aims to provide funding for indigenous operators to acquire and build vessels, thereby expanding Nigerian participation in coastal shipping.

Successful applicants can access up to $25 million each. The government has increased the number of participating banks from five to 12 and launched a CVFF application portal to enhance transparency.

Oyetola emphasized that improving access to financing is crucial for reducing foreign dominance in Nigeria's maritime sector.