The Nigerian Maritime Administration and Safety Agency (NIMASA) has officially released an expanded list of 12 Primary Lending Institutions (PLIs) approved to disburse the long-awaited Cabotage Vessel Financing Fund (CVFF), marking a major milestone in Nigeria’s maritime development strategy.
The approved institutions include a diverse blend of commercial banks, a non-interest Islamic bank, development finance institutions, and a new entrant to the financial sector. This expansion is a strategic move to broaden access to vessel financing and promote indigenous participation in the shipping industry.
The final list, as confirmed by NIMASA spokesperson Edward Osagie, includes: Fidelity Bank, Stanbic IBTC, Jaiz Bank, Optimus Bank, First Bank, SunTrust Bank, Union Bank, Zenith Bank, Lotus Bank, United Bank for Africa (UBA), and the Bank of Industry (BoI). Optimus Bank and BoI are the latest additions, completing the 12-bank lineup.
This development builds on NIMASA’s initial appointments in 2023, which featured five banks: Union Bank, Zenith Bank, Polaris Bank, UBA, and Jaiz Bank. The inclusion of seven more institutions, especially BoI and Optimus Bank, enhances the reach and diversity of the financial ecosystem supporting maritime growth.
Established under the Coastal and Inland Shipping (Cabotage) Act of 2003, the CVFF is a government-backed initiative designed to provide financial support to Nigerian shipowners for vessel acquisition and operational capacity. The fund has accumulated over $360 million, primarily from a 2% surcharge on all cabotage contracts executed in Nigerian waters.
Under the funding structure, NIMASA will contribute 50% of the funds, the PLIs are responsible for 35%, and beneficiaries must provide 15% equity. Loan terms will extend up to eight years, with a cap of $25 million per applicant.
NIMASA’s Executive Director of Cabotage Services, Jubril Abba, emphasized the transformative impact of the fund. “This disbursement will empower indigenous operators and create significant employment opportunities for Nigerian seafarers,” he stated.
Legal consultant Adedoyin Afun clarified that to qualify for the CVFF, vessels must be wholly Nigerian-owned, managed, and operated, and must have been acquired within 12 months prior to the loan application — in line with the provisions of the Cabotage Act.
The selection process, initiated through a public call in November 2024, invited eligible financial institutions — including Deposit Money Banks licensed by the Central Bank of Nigeria and both local and international development finance institutions — to express interest. Applicants were required to demonstrate the ability to offer counterpart funding at competitive single-digit interest rates while ensuring compliance with equity contribution requirements.
With the final list of PLIs now confirmed and government backing from President Bola Ahmed Tinubu and Minister of Marine and Blue Economy, Adegboyega Oyetola, the disbursement of the CVFF signals a turning point for Nigeria’s maritime sector. It is expected to boost local content, reduce foreign dominance, and spur economic growth through shipbuilding, job creation, and increased shipping capacity.
As NIMASA’s Director-General, Dr. Dayo Mobereola, put it: “This represents not just the end of a long wait, but the beginning of a new era for Nigerian shipping.”
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