The Nigerian Maritime Administration and Safety Agency has announced the selection of 12 Primary Lending Institutions for the disbursement of the Cabotage Vessels Financing Fund, NAN reports.

The Director-General of NIMASA, Dayo Mobereola, disclosed this on Monday during a virtual meeting, stating that the disbursement would be at a single-digit interest rate.

According to NAN, he said the initiative is part of efforts by the Federal Government to transform Nigeria’s maritime sector and promote indigenous participation.

Mobereola revealed that approvals had been secured from President Bola Tinubu and the Minister of Marine and Blue Economy, Adegboyega Oyetola, to operationalise the fund, which had faced nearly two decades of delay.

The selected banks include First Bank, Fidelity Bank, Zenith Bank, United Bank for Africa, Jaiz Bank, and Lottos Bank, among others.

According to Mobereola, the CVFF is designed to empower Nigerian shipowners, reduce dependence on foreign vessels, and boost local content.

“This demonstrates the establishment of clear frameworks for transparent, efficient, and impactful fund utilisation, directly empowering our indigenous shipowners,” he said.

The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to support vessel acquisition and enhance the capacity of local operators in the maritime sector.

He noted that the loan facility will be strictly monitored to ensure compliance and effective utilisation. “The disbursement is expected to generate significant employment opportunities for Nigerian seafarers and strengthen ancillary maritime services,” he added.

Also, the Executive Director of Cabotage Services at NIMASA, Jubril Abba, said the fund will stimulate economic activity in the sector and praised the Federal Government for prioritising the needs of indigenous operators.

Legal Consultant to NIMASA on the CVFF, Adedoyin Afun, explained that the fund is exclusively for Nigerian citizens and applies only to vessels owned, built, operated, and managed by Nigerians.

He noted that vessels purchased must not be older than 12 months before application and emphasised the importance of compliance with the Cabotage Act.

NAN noted that the Financial Consultant for the fund, Yusuf Buhari, said beneficiaries must contribute an equity portion, with the CVFF providing up to 50 per cent of the funding or a maximum of 25 million dollars. He added that the loans will be disbursed in U.S. dollars, with a repayment period of eight years.

Zenith Bank Managing Director, Aburime Ehimare, stressed the importance of a post-disbursement monitoring group and called for a security sharing formula to safeguard the vessels.

Additionally, the President of the Nigerian Chamber of Shipping, Aminu Umar, urged NIMASA to clarify the terms and conditions of the loan, while Safety Engineer, Olu Aladelusi, recommended including insurance and repayment safeguards in the programme.

Mobereola reiterated that the CVFF is a strategic investment in Nigeria’s maritime future and not a grant. “The CVFF represents not just the end of a long wait but the beginning of a new era for Nigerian shipping,” he said.