Cabotage fund: Shipowners get single-digit interest rate repayment plan, NIMASA confirms

The Nigerian Maritime Administration and Safety Agency (NIMASA) has stated that the Cabotage Vessel Financing Fund (CVFF), to be disbursed by the Federal Ministry of Marine and Blue Economy through the agency, would attract an eight-year repayment plan at a single-digit interest rate.

In a statement, the Director-General of NIMASA, Dr Dayo Mobereola, announced this during a one-day interactive forum organised for stakeholders.

Mobereola added that the sensitisation programme was also to educate the stakeholders on the operationalisation of the CVFF, stressing that, “there is a two-year moratorium and an eight-year tenure for the facility, which will be disbursed through twelve Primary Lending Institutions.”

According to him, other issues being addressed by NIMASA in collaboration with the PLIs include insurance, fund security, flexible tenures, and the reduction of sundry fees to the barest minimum at subsidised rates.

Mobereola emphasised the importance of the CVFF to the development of the Nigerian maritime sector.

He also acknowledged the role of President Bola Tinubu, through the Minister of Marine and Blue Economy, Adegboyega Oyetola, in ensuring the immediate disbursement of the funds.

“I am delighted to announce that under President Bola Tinubu’s leadership, and with the support of the Minister of Marine and Blue Economy, Adegboyega Oyetola, we have secured the necessary approvals for disbursement.

“This disbursement will be transformative for our industry by empowering indigenous shipowners to compete favourably, boost local content in the maritime sector, create employment opportunities for Nigerian seafarers, and strengthen ancillary maritime services,” he added.

The NIMASA boss underscored the need for transparency in the entire process.

He pointed out that to ensure transparency and accountability, NIMASA has established a dedicated Secretariat Cabotage Unit, developed clear eligibility criteria, and partnered with 12 PLIs to facilitate access to the fund.

In his remarks, the President of the Nigerian Chamber of Shipping, Aminu Umar, commended the Minister of Marine and Blue Economy, Adegboyega Oyetola, and the management of NIMASA for their efforts in facilitating the disbursement of the funds.

A former DG of NIMASA, Temisan Omatseye, also joined others in commending the NIMASA management and the minister.

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