Tinubu approves CVFF disbursement to boost indigenous shipping

President Bola Tinubu has approved the disbursement of the Cabotage Vessel Financing Fund (CVFF) to strengthen indigenous participation in Nigeria’s maritime sector.

The fund, managed by the Nigerian Maritime Administration and Safety Agency, marks the end of years of delay in implementing the revolving financing scheme established under the Cabotage Act.

The CVFF is designed to support vessel acquisition by Nigerian shipowners engaged in coastal and inland shipping.

Mr Chika Chukwudi, Assistant Director of Public Relations at NIMASA, disclosed the development in a statement issued on Thursday in Lagos.

He described the disbursement as “a defining moment,” reflecting ongoing efforts to reposition Nigeria as a formidable maritime nation by empowering local operators.

Chukwudi emphasised that the success of the initiative would depend on strict repayment discipline, noting that the fund’s revolving structure requires timely repayments to ensure sustainability and access for future beneficiaries.

“For years, stalled implementation limited local capacity, leaving much of Nigeria’s coastal trade in the hands of foreign-flagged vessels.

“The disbursement is expected to boost Nigerian ownership, create jobs, and increase the country’s share of maritime trade,” he said.

He clarified that the CVFF is a loan and not a grant, warning that its survival depends on adherence to repayment obligations.

According to him, default could attract severe consequences, including vessel seizure by lending banks, loss of contracts, job losses, and reputational damage that may hinder access to future financing.

“In shipping, credibility is currency, and one operator’s default can harm the entire industry,” he said.

Chukwudi further warned that failure to sustain the fund could force continued reliance on foreign vessels and deny future operators access to critical financing.

Nigeria currently holds a Category C seat at the International Maritime Organization, a status he said requires consistent progress, institutional credibility, and adherence to global best practices.

He noted that effective management of initiatives such as the CVFF would shape international perception of Nigeria’s maritime governance.

“A pattern of defaults or weak enforcement could erode confidence and weaken Nigeria’s position in global maritime decision-making,” he said.

Chukwudi urged beneficiaries to utilise the funds prudently and ensure prompt repayment, describing the initiative as a test of collective responsibility.

“The opportunities are historic, but the responsibility is immense, and the consequences of failure are far-reaching,” he added.