In a bold move to ensure transparency and accountability in the maritime sector, the African Association of Professional Freight Forwarders and Logistics (APFLON) has formally urged the Federal Government to mandate a thorough verification of shipowners’ credit ratings before disbursing the long-delayed Cabotage Vessel Financing Fund (CVFF).
This development follows recent directives by the Minister of Marine and Blue Economy, Adegboyega Oyetola, instructing the Nigerian Maritime Administration and Safety Agency (NIMASA) to begin the disbursement process of the Cabotage Vessel Financing Fund (CVFF) is a fund designed to boost indigenous shipping capacity in Nigeria.
The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act of 2003, was intended to provide financial assistance to local shipowners for vessel acquisition. However, it has remained dormant for over a decade due to bureaucratic hurdles, policy inconsistencies, and allegations of mismanagement.
In a statement released on Wednesday, APFLON President Frank Ogunojemite praised the minister’s decision to unlock the fund, describing it as “a giant step towards maritime sector empowerment.” Nonetheless, he cautioned that without proper vetting, the fund might end up repeating past failures.
“Much as we applaud you for this bold initiative, we equally call for caution in disbursing the fund. This is to avoid a repeat of past instances where public funds were misused, and the intended objectives defeated,” Ogunojemite warned.
Ogunojemite stressed the urgent need for the government to assess the operational viability of all proposed beneficiaries. According to him, many supposed shipowners are no longer active in the maritime business or are burdened with debts both locally and internationally.
“Some of the shipowners are out of business, and others are technically moribund. If the government does not assess their creditworthiness, the fund might simply be used to repay foreign or local debts, rather than strengthening Nigeria’s maritime capacity,” he added.
To address these concerns, APFLON is advocating the formation of an independent committee to vet the financial health, operational activity, and credit exposure of all CVFF applicants. The association suggests that credit ratings and debt obligations be thoroughly scrutinised to prevent fund diversion and ensure optimal impact.
The group also called for post-disbursement monitoring mechanisms, recommending that the Ministry of Marine and Blue Economy work closely with NIMASA and financial institutions to track how the funds are utilised.
“We must get it right this time. If properly managed, the CVFF has the potential to revolutionize shipbuilding, reduce freight costs, and generate employment opportunities for maritime graduates,” Ogunojemite said.
He emphasized that deploying the fund effectively could reduce Nigeria’s dependence on foreign-flagged vessels, foster indigenous participation in coastal shipping, and enhance the overall competitiveness of Nigeria’s maritime sector.
The CVFF is funded by a two percent surcharge on all cabotage contracts, among other sources. Despite accumulating billions of naira over the years, the fund has never been fully disbursed, making this renewed push under Minister Oyetola a major turning point in Nigeria’s maritime history.
The fund has long been seen as a potential catalyst for transforming Nigeria into a maritime hub in West Africa, with ripple effects on trade, logistics, and regional shipping dominance. The call by freight forwarders signals growing stakeholder engagement and a shift towards greater accountability in fund management.
As the government moves closer to implementing the disbursement, all eyes are on NIMASA and the Ministry of Marine and Blue Economy to ensure the CVFF achieves its foundational goals—supporting indigenous shipowners, revitalizing the shipping industry, and promoting economic growth through blue economy initiatives.
