$700m CVFF disbursement to attract single digit interest rate — 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.

NIMASA Director General, Dr Dayo Mobereola, announced this on Monday during a one-day interactive forum organised for stakeholders on the operationalisation of the CVFF.

He also disclosed a two-year moratorium and an eight-year tenure for the facility, which will be disbursed through 12 Primary Lending Institutions (PLIs).

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 subsidised rates.

Dr Mobereola emphasised the importance of the CVFF in developing 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, HE Adegboyega Oyetola, we have secured the necessary approvals for disbursement. This CVFF disbursement will be transformative for our industry by empowering indigenous shipowners to compete favourably, boosting local content in the maritime sector, creating employment opportunities for Nigerian seafarers, and strengthening ancillary maritime services.”

Mobereola also stressed the need for transparency throughout the process. “To ensure transparency and accountability, we have 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 realisation of the CVFF, also joined others in commending the NIMASA management and the Honourable Minister of Marine and Blue Economy.

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