Indigenous Shipowners Hail Oyetola’s Directive on CVFF Disbursement

Indigenous Shipowners Hail Oyetola’s Directive on CVFF Disbursement

Lagos, Nigeria

Indigenous Shipowners Hail the recent directive by the Minister of Marine and Blue Economy, Adegboyega Oyetola, instructing the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF).​

The CVFF, established under the Coastal and Inland Shipping Act of 2003, has accumulated over $350 million and N16 billion from a 2% surcharge on contracts performed by vessels engaged in coastal trade. Despite its substantial growth, the fund has remained inaccessible to indigenous operators for over two decades, hindering the development of Nigeria’s domestic shipping capacity.​

Oyetola’s directive marks a pivotal shift, signaling the federal government’s commitment to revitalizing the indigenous maritime sector. The minister emphasized the importance of transparency and accountability in the disbursement process, announcing plans to collaborate with development banks to ensure effective utilization of the funds. He also highlighted ongoing efforts to develop inland dry ports across the country to enhance trade facilitation and logistics efficiency. ​

Minister of Marine and Blue Economy, Adegboyega Oyetola

Greg Ogbeifun, Managing Director of Starzs Marine and Engineering Ltd and former President of the Shipowners Association of Nigeria (SOAN), lauded the minister’s proactive approach. “The minister’s move is extremely commendable,” Ogbeifun remarked. “The important thing is that due process according to the requirements of the Act has to be followed.” He emphasized the need for adherence to legal frameworks to ensure the fund’s disbursement aligns with established guidelines.​

Similarly, Sonny Eja, President of SOAN and Managing Director of Petromarine Nigeria Ltd, welcomed the development. He noted that while the disbursement is long overdue, the partnership with the Bank of Industry (BoI) for the fund’s distribution is a positive step. Eja also stressed the importance of implementing stringent measures to ensure that beneficiaries utilize the funds appropriately and that repayment mechanisms are robust.​

Indigenous Shipowners Hail the directive has been met with cautious optimism within the maritime industry. While stakeholders acknowledge the significance of the move, they urge the government to maintain momentum and ensure that the disbursement process is expedited and free from bureaucratic delays.

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As Nigeria takes this decisive step towards strengthening its indigenous shipping capacity, the hope is that the CVFF will serve as a catalyst for the growth and modernization of the nation’s maritime industry, ultimately contributing to economic development and job creation.​

The federal government has pledged to complete the disbursement process by August 2025, a timeline that stakeholders are closely monitoring to ensure that the long-standing aspirations of indigenous shipowners are finally realized.