NIMASA’s CVFF disbursement, job creation in maritime sector, gets Reps’ backing
By Dooyum Naadzenga
The Nigerian Maritime Administration and Safety Agency (NIMASA) has got the nod from the House of Representatives regarding the disbursement of the Cabotage Vessel Financing Fund (CVFF).
This backing comes as the agency prepares to expedite the release of funds that have been a long-standing challenge for over two decades.
The announcement was made during an oversight visit by the House Committee on Maritime Safety, Education, and Administration.
During the visit, Hon. Uduak Alphonsus Odudoh, the Acting Chairman of the Committee, commended NIMASA’s leadership under Director General Dr. Dayo Mobereola.
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He highlighted the agency’s ongoing reforms aimed at enhancing Nigeria’s maritime relevance on the global stage.
Odudoh emphasized that timely disbursement of the CVFF would not only facilitate job creation within the maritime sector but also improve Nigeria’s international image, particularly in regard to maritime safety and piracy prevention.
Dr. Mobereola, in his remarks, welcomed the support from the House Committee and acknowledged the critical role of legislative oversight in shaping effective governance within the maritime sector. He confirmed that the Minister of Marine and Blue Economy, Adegboyega Oyetola, has directed NIMASA to ensure that indigenous shipowners gain access to this essential funding. “The guidelines have been streamlined based on the Minister’s approval, so beneficiaries can access the funds this year,” he stated.
To facilitate the efficient management of the $700 million CVFF, NIMASA has expanded its partnerships with Primary Lending Institutions (PLIs) from five to twelve banks. This strategic move is intended to enhance risk assessment and ensure that only financially viable shipping firms benefit from the fund. Mobereola explained that involving banks will promote financial discipline and sustainability, which are vital for the long-term success of the fund.
The funding model established by NIMASA involves a collaborative approach where banks will contribute 35%, NIMASA will provide 50%, and shipowners will contribute the remaining 15% as equity. This model aims to create a balance of risk and reward, ensuring that access to finance translates into meaningful business opportunities for local shipowners.
“This is a win-win scenario—access to finance and access to business,” Mobereola reiterated, underscoring the positive implications for the Nigerian economy. He expressed optimism that the disbursement of the CVFF would stimulate growth and innovation within the maritime sector, ultimately contributing to national development.
The support from the House of Representatives also aligns with Nigeria’s aspirations to secure election to Category C at the International Maritime Organization (IMO). The lawmakers pledged to collaborate with NIMASA and the Ministry of Marine and Blue Economy to bolster Nigeria’s bid for greater representation in the global maritime community.
As the maritime sector gears up for these changes, stakeholders are hopeful that the renewed focus on the CVFF will address longstanding issues that have hindered growth and development. The commitment from both the legislative and executive arms of government signifies a unified approach to enhancing Nigeria’s maritime capabilities.
With the promise of job creation and a more robust maritime economy on the horizon, the recent developments signal a transformative period for NIMASA and the broader Nigerian maritime industry. The agency is poised to not only improve its operational landscape but also cement Nigeria’s position as a serious player in global maritime affairs.
