CVFF Disbursement: House of Representatives Backs Marine and Blue Economy Ministry

The House of Representatives, through its Committee on Maritime Safety, Education and Administration, has pledged full support for the directive issued by the Minister of Marine and Blue Economy, Adegboyega Oyetola, for the Nigerian Maritime Administration and Safety Agency (NIMASA) to expedite the disbursement of the Cabotage Vessel Financing Fund (CVFF).

During an oversight visit to NIMASA, the Acting Chairman of the Committee, Uduak Alphonsus Odudoh, 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.

The lawmaker commended 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. He noted that this will translate to job creation for the maritime sector in Nigeria.

Mobereola confirmed that the Minister’s directive on the CVFF disbursement is a fait accompli and that NIMASA is acting in accordance with the directive to ensure indigenous shipowners finally have access to this critical funding.

The DG assured that beneficiaries can access the funds this year, following the streamlining of guidelines based on the Minister’s approval.

To manage the $700 million intervention fund efficiently, NIMASA has expanded the number of Primary Lending Institutions (PLIs) from five 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.

Mobereola explained that involving banks will ensure financial discipline and sustainability, which are crucial for this fund to continue long-term.

The House of Representatives’ support for the Marine and Blue Economy Ministry’s directive on CVFF disbursement is a significant development for Nigeria’s maritime industry.

With NIMASA’s efforts to streamline guidelines and expand access to funding, indigenous shipowners can look forward to accessing critical funding to boost their businesses.

The move is expected to create jobs and contribute to the growth of the maritime sector in Nigeria.