Ship Owners Describe CVFF Disbursement As Game Changer In Shipping Development

Operators in the maritime industry under the aegis of African Shipowners Association (ASA), has described moves by the Federal Government to disburse the Cabotage Vessel Finance Fund (CVFF) to indigenous ship owners as a game charger in shipping development and local content potentials.

The African Shipowners Association also lauded the Federal Government’s move to begin disbursements of CVFF to indigenous shipowners, saying it as a transformative step for Nigeria’s maritime sector and local content development.

ASA President, Captain Ladi Olubowale, in a statement over the weekend, commended the directive by the Minister of Marine and Blue Economy, Adegboyega Oyetola, for the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence CVFF disbursement by August 2025. He said the initiative, which will see loans offered at single-digit interest rates, promises to unlock growth, build capacity, and position Nigeria as a leading maritime nation in Africa.

Olubowale noted that involving Nigerian banks in the disbursement process-alongside NIMASA’s oversight-will ensure transparency and curb misuse, aligning with international best practices. He emphasized that this model mirrors successful ship financing systems in countries like Japan, China, and Indonesia, and will encourage Nigerian banks to create dedicated maritime desks, correcting past neglect of the sector.

Emphasising on the essentials, he stated, “This disbursement will allow more Nigerians to own ships and enable local vessels to compete in Nigeria and across Africa, breaking the dominance of foreign fleets. Bank involvement is a perfect strategy to ensure accountability and value across the supply chain.”

“This disbursement will unlock a lot of things as Nigerians will be owing ships and more opportunities for Nigerian flag ships to trade and compete in the coastal water of Nigeria and Africa which is already dominated by foreign vessels. This is the time we can play in our own field.

“Banks involvement is a welcome development and a perfect strategy that will plugin to all value chains. Without banks, it will be a free money for everyone. But the banks being on top of the initiative and NIMASA coming in to stand as guarantor, shipowners need not be heard.

“Transparency is very key. Things have to be done in line with the international best practices. CVFF is an opportunity for ship-ownership. All processes and conditions must be met. Bank involvement now will stop the failure of past experience as there will be committee to check and scrutinise all intending borrowers,” said Captain Olubowale.

Olubowale, who doubles as the Managing Director Seamate Maritime Integrated Services Limited, highlighted the readiness of ASA and its members-whose vessels are certified to international standards-to benefit from the fund. He revealed that Seamate has signed multiple ship management agreements to create jobs and enhance operational efficiency, with plans to dedicate a vessel for cadet training as part of its fleet strategy.

He called on NIMASA to intensify stakeholder engagement and training to ensure the sector is fully prepared for the fund’s impact, stressing that capacity building, compliance with green shipping standards, and a strategic roadmap are essential for long-term success.

The CVFF, established under the Cabotage Act of 2003, is set to provide eligible Nigerian shipping firms access to up to $25 million each for vessel acquisition, with disbursement managed by selected Primary Lending Institutions. The move marks the end of a two-decade wait and is widely expected to rejuvenate indigenous shipping and position Nigeria as a maritime hub in Africa.