Banks and Shipowners Back $700M CVFF De-risking Plan

Banks, indigenous shipowners, and key players in Nigeria’s maritime industry have endorsed a de-risking framework to facilitate the disbursement of the $700 million Cabotage Vessel Financing Fund (CVFF). This consensus was reached at the inaugural Maritime Policy Roundtable organized by Olisa Agbakoba Legal (OAL).

Dr. Olisa Agbakoba (SAN), Senior Partner of OAL, emphasized that the CVFF, established under the Coastal and Inland Shipping (Cabotage) Act 2003, is crucial for increasing Nigerian vessel ownership and reducing reliance on foreign operators. Collins Okeke, an OAL Partner, presented the de-risking framework, advocating for stringent credit-risk assessments and enforceable security arrangements for loans.

Capt. Nicolas Bernard, Managing Director of NBC Maritime Ltd., highlighted the importance of professional ship management in maintaining vessel value and ensuring returns. Stakeholders acknowledged the need for stronger credit evaluation and specialized maritime-finance expertise to avoid past failures in the CVFF lending program.

They also discussed cargo-backed financing as a means to enhance the bankability of indigenous shipping companies.