Shipowners to access $700m cabotage fund at single-digit interest rate, 8-year repayment- NIMASA

The Cabotage Vessel Financing Fund (CVFF) to be disbursed by the Federal Ministry of Marine and Blue Economy through the Nigerian Maritime Administration and Safety Agency (NIMASA), shall attract a single-digit interest rate.

The Agency’s Director General, Dr. Dayo Mobereola, who announced this on Monday at a one-day interactive forum organized for stakeholders on the operationalization of the CVFF, also disclosed a two-year moratorium and an eight-year tenure for the facility, which will be disbursed through twelve (12) Primary Lending Institutions.

Other issues being addressed by NIMASA in collaboration with the PLIs include insurance, fund security, flexible tenures, and the reduction of sundry fees to the barest minimum at subsidized rates.

Dr. Mobereola emphasized the importance of the CVFF to the development of the Nigerian maritime sector, while acknowledging the role of President Bola Ahmed Tinubu, GCFR, through the Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola, CON, in ensuring the immediate disbursement of the funds.

In his words: “I am delighted to announce that under President Bola Ahmed Tinubu’s leadership, and with the support of the Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola, we have secured the necessary approvals for disbursement. This disbursement will be transformative for our industry by empowering indigenous shipowners to compete favourably, boost local content in the maritime sector, create employment opportunities for Nigerian seafarers, and strengthen ancillary maritime services.”

Mobereola also emphasized the need for transparency in the entire process. “To ensure transparency and accountability, we established a dedicated Secretariat Cabotage Unit, developed clear eligibility criteria, and partnered with 12 Primary Lending Institutions to facilitate access to the fund.”

In his remarks, the President of the Nigerian Chamber of Shipping, Aminu Umar, and other industry stakeholders commended the Minister of Marine and Blue Economy, Adegboyega Oyetola, and the Management of NIMASA for their efforts in facilitating the disbursement of the funds. Former Director General of NIMASA, Temisan Omatseye, who had previously doubted the realization of the CVFF, also joined others in commending the NIMASA Management and the Honourable Minister of Marine and Blue Economy.

Photo caption:

R-L:Director Cabotage Services, Nigerian Maritime Administration and safety Agency, NIMASA, Kabir Murnai; Executive, Maritime Labour and Cabotage Services, NIMASA, Jibril Abba; Director General, NIMASA, Dr Dayo Mobereola; Chairman/CEO Sea Transport Services Limited, Aminu Umar; Vice President, Nigerian Chamber of Shipping, Ify Akerele; Executive Director Operations, NIMASA, Engr Fatai Taiye Adeyemi and SA-DG (Administration and Operations), NIMASA, Olatunji Ahmed during a Stakeholders Interactive Forum on the Operationalization of the Cabotage Vessel Financing Fund (CVFF) in Lagos on Monday.