Oyetola says “We cannot continue to undermine our local capacity under the guise of waivers”; CVFF single-digit loans to indigenous shipowners to be processed in 96 days

The minister of marine and blue economy, Adegboyega Oyetola has announced plans to end the issuance of waivers under the Coastal and Inland Shipping Act of 2003.

This decisive move according to the minister is to strengthen Nigeria’s maritime sector, create jobs, and boost indigenous participation in the shipping industry.

The Coastal and Inland Shipping Act, also known as the Cabotage Act, restricts domestic coastal shipping to Nigerian-owned, Nigerian-crewed, and Nigerian-built or -flagged vessels.

But waivers have often been granted to foreign vessels whenever local capacity is deemed inadequate and the practice have over the years significantly limited the growth of Nigerian shipping companies, depriving them of critical opportunities in the domestic shipping space.

The special adviser, Media and Communications to the minister, Dr Bolaji Akinola, while receiving a high-level delegation from NNPC Shipping, Stena Bulk, and Caverton Offshore Support Group at the ministry in Abuja, stated his principals firm resolve to reverse this trend.

“The era of indiscriminate waivers is coming to an end,” Oyetola declared.

“We cannot continue to undermine our local capacity under the guise of temporary foreign intervention. It is time to build Nigerian tonnage, support Nigerian jobs, and give indigenous operators a fair chance to thrive. That is the only sustainable path to maritime development.”

The visit comes on the heels of the formal unveiling of Unity Shipping World (USW), a newly formed joint venture by NNPC Shipping, global maritime giant Stena Bulk, and Nigerian offshore service leader Caverton Offshore Support Group.

The joint venture aims to establish a robust tanker operation capable of transporting crude oil, refined products, and LNG within Nigeria, West Africa, and globally.

As part of this renewed focus on indigenous capacity, the Minister had earlier directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to immediately commence the process that will lead to the disbursement of the Cabotage Vessel Financing Fund (CVFF).

The fund, which has accumulated over the years from Cabotage levies, is intended to assist Nigerian shipowners in acquiring vessels and enhancing their operational capacity.

“The disbursement of the CVFF is no longer optional — it is imperative,” Oyetola stated.

“Our indigenous operators must be empowered to acquire modern vessels and effectively render services that have, for too long, been dominated by foreign shipping concerns. As we work to bring the waiver regime to a close, this support becomes even more critical.”

Meanwhile, successful applicants of the Cabotage Vessel Financing Fund (CVFF) who are to repay their loans to their various Primary Lending Institutions (PLIs) within eight years were counselled weekend by the director-general of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dayo Mobereola, weekend to ensure they have the necessary facilities to operate the vessels profitably.

According to the NIMASA boss, who said applicants’ applications would be processed within 96 days from the day of formal application by the shipowner, also emphasized the need for transparency in the entire process.

He disclosed as well that the PLIs have been increased from five to 12 in order to give the shipowners various options.

“To ensure transparency and accountability, we established a dedicated Secretariat Cabotage Unit, developed clear eligibility criteria, and partnered with 12 Primary Lending Institutions to facilitate access to the fund.”

“I urge all prospective applicants to follow the established procedures through our partner financial institutions. The CVFF is not a grant program 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 CVFF was established under the Coastal and Inland Shipping Act of 2003 to provide financial support to indigenous shipowners for vessel acquisition and capacity development. Despite nearly two decades of regulatory challenges and bad experiences of the past, I am delighted to announce that under President Bola Tinubu’s leadership and with the support of the Minister of Marine and Blue Economy, Gboyega Oyetola, we have secured the necessary approvals for disbursement.”

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

In his response, the President of the Nigerian Chamber of Shipping, Aminu Umar, and other industry stakeholders 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.