Twenty-three after it was established, the federal government has finally opened the Cabotage Vessel Financing Fund (CVFF) application portal, paving the way for indigenous shipowners to access up to $25 million each in vessel financing.
Plagued by unserviceable and small vessels, local shipowners have locked out of crude oil lifting, leaving the juicy contracts to foreigners amid horrifying annual revenue loss in billions of dollars.
With the portal in place, applications are expected to be processed within 70 to 80 days, with loans priced at a 6.5 per cent interest rate and repayable over an eight-year tenor, in a move aimed at strengthening local shipping capacity and maritime competitiveness.
Speaking at the launch yesterday, the minister of Marine and Blue Economy, Adegboyega Oyetola, said the fund is structured as a revolving facility, meaning beneficiaries are expected to repay loans to sustain future lending.
The aim, he explained, is to reduce foreign dominance in the country’s shipping industry. The portal, which will be managed by the Nigerian Maritime Administration and Safety Agency (NIMASA), allows eligible Nigerian shipowners to submit applications digitally.
