SEREC urges FG, NIMASA to disburse CVFF quickly

The Sea Empowerment and Research Center (SEREC) has challenged the Federal Government of Nigeria and the Nigerian Maritime Administration and Safety Agency (NIMASA) to address immediately the factors hindering the disbursement of the Cabotage Vessel Finance Fund (CVFF).

Puzzled by this delay, SEREC attributed the delay to bureaucratic red tape –  complex and time-consuming procedures, lack of transparency and accountability, competing priorities – limited resources and competing interests.

The Head of Research, SEREC, Fwdr Eugene Nweke, challenged the Federal Government in a bulletin released by the Centre in Lagos on Monday, March 10, 2025.

The bulletin, titled Much Ado About CVFF Disbursement, reads thus:
The Cabotage Vessel Financing Fund (CVFF) has accumulated approximately ₦16 billion naira and $350 million dollars. Established to promote indigenous ship acquisition capacity and provide credit facilities to local maritime operators, the CVFF’s disbursement is long overdue.

The Delay: A Cause for Concern:
The Sea Empowerment and Research Center (SEREC) is puzzled by the government’s delay in disbursing the CVFF. This delay may be attributed to:
Bureaucratic Red Tape –  Complex and time-consuming procedures hindering the disbursement process.
Lack of Transparency and Accountability – Unclear guidelines and decision-making processes contributing to delays and inefficiencies.
Competing Priorities – Limited resources and competing interests diverting attention away from the CVFF.
For instance, the Nigerian Maritime Administration and Safety Agency (NIMASA) has reported that the CVFF has the potential to create over 10,000 jobs and generate ₦50 billion in revenue annually [2]. However, the delay in disbursement has hindered the realization of these benefits.

To address these challenges, the government must:
Streamline Bureaucratic Processes – Simplify and accelerate the disbursement process.
Increase Transparency and Accountability –  Establish clear guidelines, transparent decision-making processes, and effective monitoring mechanisms.
Prioritize CVFF Disbursement –  Recognize the importance of the CVFF in promoting Nigeria’s participation in the African Continental Free Trade Area (AfCFTA) and allocate sufficient resources to support its disbursement.

We urge the government to take the following actions within the next 6 months:
Establish a clear timeline for CVFF disbursement.
Provide transparent and regular updates on the disbursement process.
Allocate sufficient resources to support the CVFF’s disbursement.

The Consequences of Politicization:
The continued delay in CVFF disbursement may be attributed to politicization. And to address this, the government must:
Implement Transparent and Accountable Processes – Ensure decision-making processes are based on merit and technical considerations.
Establish Effective Oversight Bodies – Monitor the CVFF’s management and disbursement.
Foster Open Communication and Collaboration – Ensure the CVFF serves its intended purpose.

The Benefits of Disbursement:
If disbursed, the CVFF would have likely benefited the industry in the following ways:
Increased Indigenous Participation –  Enabled indigenous shippers to acquire modern vessels and compete with foreign shipping companies.
Economic Growth and Development – Created jobs, stimulated economic growth, and contributed to the country’s GDP.
Improved Maritime Infrastructure – Developed ports, terminals, and ship repair facilities.

For example, the CVFF could have supported the development of the Nigerian maritime industry, enabling it to compete more effectively with other African countries. This, in turn, would have generated more revenue for the government and created jobs for Nigerian citizens.

The government must demonstrate its sincerity and commitment to developing the maritime industry, supporting indigenous shippers, and promoting economic growth and development. The benefits of CVFF disbursement far outweigh any contemplations or reasons given by NIMASA and the central government.

We urge the government to take immediate action to address the challenges hindering the CVFF’s disbursement. The maritime industry and Nigerian citizens await tangible progress.