CVFF Sustainability Tied to Repayment Culture, NIMASA Warns

Chika Chukwudi, Assistant Director of the Public Relations Unit at the Abuja Zonal Office of the Nigerian Maritime Administration and Safety Agency (NIMASA), emphasized that the sustainability of the Cabotage Vessel Financing Fund (CVFF) is entirely dependent on a strong repayment culture among beneficiaries. He warned that without this foundation, the scheme risks collapse.

Chukwudi highlighted the significance of the recent disbursement of the CVFF, marking a pivotal moment for Nigeria's maritime sector. He pointed out that the fund is not a grant but a loan that must be repaid, stressing that failure to repay could lead to immediate financial consequences for individuals and damage the credibility of the industry.

This could limit future financing opportunities both locally and internationally. Chukwudi noted that a breakdown in repayment culture could weaken the revolving structure of the CVFF, depriving future applicants of access to critical funds and hindering the growth of indigenous shipping capacity, thereby reinforcing dependence on foreign vessels.