Apply for $25m Cabotage Funds as FG Launches Portal, Releases Requirements
- The federal government is to begin disbursement of the $25 million Cabotage Vessel Financing Fund (CVFF)
- The funds are for Nigerian shipowners, and there are other strict requirements for interested persons
- The government says the CVFF will boost indigenous vessel ownership and create jobs across Nigeria’s maritime sector
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The federal government has launched a digital application portal for the Cabotage Vessel Financing Fund (CVFF), formally kicking off the long-delayed disbursement of up to $25 million to eligible Nigerian shipowners.
Source: Getty Images
The portal was unveiled in Lagos on Thursday, January 22, by Adegboyega Oyetola, minister of marine and blue economy is part of efforts to expand indigenous participation in coastal and inland shipping and strengthen Nigeria’s maritime capacity.
How to apply for $25m cabotage funds
According to a marine notice issued by the Nigerian Maritime Administration and Safety Agency (NIMASA), the CVFF was established under Section 42 of the Coastal and Inland Shipping (Cabotage) Act 2003 and is administered in line with the CVFF Guidelines of2006 to support indigenous ship acquisition through financial assistance to Nigerian operators.
Under the guidelines, only Nigerian citizens and shipping companies wholly owned by Nigerians are eligible to apply for loans or guarantees from the fund.
The notice stated that to qualify, applicants must submit a bankable feasibility report, subject to independent verification by an approved Primary Lending Institution (PLI) and NIMASA.
They are also required to provide a minimum equity contribution of 15% of the credit facility requested and pay all prescribed fees.
Other requirements include demonstrating sufficient managerial and operational capacity, reaching an agreement with a PLI in its participation in the credit facility, providing acceptable security or collateral, and submitting evidence of contribution to the CVFF, alongside any additional conditions that may be required by the fund.
NIMASA noted that each qualifying individual applicant, or group of related applicants, can access a credit facility of up to $25 million, or its equivalent in an approved currency.
Also, Applications must be routed strictly through approved PLIs and will be assessed using defined risk acceptance criteria, with only qualifying submissions granted access.
The notice added:
"Applicants may also be subject to further requirements imposed by PLIs and approved by NIMASA."
Source: Getty Images
FG targets for CVFF funds
Speaking at the launch of the portal, the minister said the digital platform would ensure transparency, accountability and prudent management of the fund, while supporting timely repayment to sustain the CVFF as a revolving facility.
Oyetola said the initiative would reduce Nigeria’s dependence on foreign-flagged vessels, deepen local participation in shipping, create jobs for Nigerian seafarers and stimulate growth across shipbuilding and maritime services.
He said.
“Through this platform, eligible Nigerian shipowners can submit applications that will be assessed against clearly defined criteria, supported by robust due diligence and professional financial oversight through approved Primary Lending Institutions."
Also speaking at the launch event, the Director General of the NIMASA, Dr Dayo Mobereola said:
"Our objective is to make the CVFF work as a practical and reliable financing window for Nigerian shipowners to acquire vessels at competitive long-term financing rates"
12 banks appointed for CVFF fund
Earlier, Legit.ng reported that NIMASA announced the appointment of 12 banks as Primary Lending Institutions (PLIs) for the disbursement of the CVFF funds.
The agency had, in 2023, appointed five banks as PLIs for the disbursement of the much-awaited CVFF fund.
The 12 approved banks are Fidelity Bank, Stanbic IBTC, United Bank for Africa (UBA), Zenith Bank, Lotus Bank, Union Bank, First Bank, Jaiz Bank, SunTrust Bank, and Globus Bank.
Source: Legit.ng
