NIMASA Approves 12 Banks For Payment of $360m CVFF Fund
LAGOS MAY 15TH (NEWSRANGERS)-The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced the appointment of 12 banks as Primary Lending Institutions (PLIs) for the disbursement of the over $360 million Cabotage Vessel Financing Fund (CVFF).
Daily Trust reports that the agency, had in 2023, appointed five banks as PLIs for the disbursement of the much-awaited CVFF fund.
The 12 banks approved are Fidelity Bank, Stanbic IBTC, United Bank for Africa (UBA), Zenith Bank, Lotus Bank, Union Bank, First Bank, Jaiz Bank, SunTrust Bank and Globus Bank.
Two years ago, the federal government appointed Union Bank, Zenith Bank, Polaris Bank, United Bank for Africa and Jaiz Bank to serve as PLIs for the disbursement of the funds.
The PLIs have been directed to offer single-digit loans to applicants which must be fully repaid within eight years, starting from the date of disbursement.
The fund will be disbursed to an applicant within 91 days after which applicants must have fulfilled all necessary criteria required for approval.
Speaking at a stakeholders’ forum on the operationalisation of the CVFF, held in Lagos on Monday, the Director General of NIMASA, Dr Dayo Mobereola, disclosed that the agency has established a dedicated Secretariat Cabotage Unit at its headquarters to help applicants with useful information.
Mobereola explained that the agency, in a push to ensure smooth disbursement, has also set and developed clear eligibility criteria and that it will be partnering with 12 Primary Lending Institutions to facilitate access to the fund.
To unveil application portal
According to him, an online portal will be unveiled for the disbursement process.
“I urge all prospective applicants to follow the established procedures through our partner financial institutions.
“The CVFF is not a grant programme but a strategic investment in Nigeria’s maritime future. It is a loan with single-digit interest. We will monitor fund utilisation to ensure they achieve the intended objectives.
“The operationalisation of the CVFF represents not just the end of a long wait but the beginning of a new era for Nigerian shipping,” he stated.
The NIMASA boss, while tracing the CVFF journey, stated it was established under the Coastal and Inland Shipping Act of 2003 to provide financial support to indigenous ship owners for vessel acquisition and capacity development.
He said the agency had secured the necessary approvals for disbursement, despite nearly two decades of regulatory challenges and bad experience of the past, adding that it is coming under President Bola Ahmed Tinubu’s leadership and with the support of the Minister of Marine and Blue Economy, Gboyega Oyetola.
Funds’ impact
Reeling out the impact of CVFF on the maritime industry, he said the disbursement will be transformative for the industry as it will empower indigenous ship owners to compete favourably and also boost local content in the maritime sector
“It will create employment opportunities for Nigerian seafarers and strengthen ancillary maritime services,” he added.
Earlier, in his welcome address, the Executive Director, Maritime Labour and Cabotage Services, Jubril Abba, stated that the potentials of the nation’s marine and blue economy when harnessed, would be a significant contributor to the nation’s GDP and catalyse activities in other sectors that would lead to rapid economic growth and development, in line with the renewed Hope Agenda of the administration.
He said it is in line with this mandate that the Minister of Marine and Blue Economy, Adegboyega Oyetola, had since assumption of office, rolled out; and various action programmes to revive critical policies for immediate implementation by agencies under the ministry.
“Consequently, the directive by the honourable minister for all hands to be on deck to ensure the immediate operationalization of the CVFF is not only timely, but strategic, as Nigeria gravitates towards building a resilient and robust economy that would not be solely dependent on fossil based resources as the key provider of its revenue streams.”
Strategic importance
A legal luminary and one-time president of the Nigerian Bar Association (NBA) Dr Olise Agbakoba, while speaking on the planned disbursement of CVFF fund, listed some of the strategic importance of the process to the development of the marine and blue economy.
He said the activation of the CVFF is a significant milestone in Nigeria’s maritime sector and that it is expected to, among other things, enhance indigenous participation by providing financial support, and that the fund will increase the number of Nigerian-owned vessels operating in domestic waters.
DailyTrust
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Posted by News Rangers
on May 15 2025. Filed under Business, National.
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