CVFF Disbursement: NIMASA increases lending banks to 12 as Reps pledges support

To manage the $700 million Cabotage Vessel Finance Fund (CVFF), the Nigerian Maritime Administration and Safety Agency (NIMASA) has expanded the number of Primary Lending Institutions (PLIs) from five banks to twelve.

These banks will play a key role in risk assessment, ensuring that only credible, financially capable shipping firms benefit from the revolving fund.

The funding model will see banks contribute 35%, NIMASA 50%, and the remaining 15% as equity from the shipowners themselves.

The Director General of NIMASA, Dr. Dayo Mobereola, disclosed this during the visit of the House of Representatives  Committee on Maritime Safety, Education and Administration to NIMASA in Lagos on Wednesday, April 23, 2024.

Mobereola confirmed to the Committee, led by its Chairman, Honourable Uduak Alphonsus Odudoh, that the Minister’s directive on the CVFF disbursement is a fait accompli.

“We are acting in accordance with the directive of the Honourable Minister to ensure indigenous shipowners finally have access to this critical funding. The guidelines have been streamlined based on the Minister’s approval, so beneficiaries can access the funds this year.

“By involving the banks, we are ensuring financial discipline and sustainability, which are crucial for this fund to continue long-term.

 “We are creating a win-win scenario—access to finance and access to business,” Mobereola said.

Mobereola expressed appreciation for the cordial relationship that exists between the agency and the House Committee and lauded the Committee’s role in shaping governance and policy direction for the maritime sector.

Speaking earlier, the Committee Chairman Uduak Alphonsus Odudoh pledged full support for NIMASA to expedite the disbursement of the CVFF and expressed satisfaction with the Agency’s progress and commended the leadership of Director General Dr. Dayo Mobereola for ongoing reforms that are repositioning Nigeria’s maritime industry for global relevance.

“I want to commend NIMASA and the Federal Ministry of Marine and Blue Economy for steps taken to disburse the CVFF which has been a challenge for over 20 years. This will translate to job creation for the maritime sector in Nigeria. The DG and his team have succeeded in maintaining no piracy in Nigerian waters and this translates to better image for Nigeria.

“We are supporting Nigeria’s quest to seek election into category C at the IMO and hopefully we will win.  The DG told us that NIMASA is domesticating a record 56 conventions in one fell, swoop. This is fantastic. The global maritime community will see us as a serious maritime nation. we are committed to work, collaborate with NIMASA, collaborate with the Ministry of Marine and Blue Economy, for the success of this present government and the success of Nigeria.” the law maker declared.