NIMASA’s $700m CVFF Disbursement Hits Brickwall as PLIs Demand Cargo Contracts from Shipowners
Minister of Marine and Blue Economy, Adegboyega Oyetola
Nigerian shipowners seeking to access the Federal Government’s $700 million Cabotage Vessel Financing Fund (CVFF) are hitting severe roadblocks at the banking stage, where rigorous credit assessments and demands for long-term cargo guarantees have stalled disbursements.
Although the Nigerian Maritime Administration and Safety Agency (NIMASA) launched the CVFF application portal in January 2026, promising eligible indigenous shipowners up to $25 million each, only one of the 92 applications received has been reviewed and forwarded to the Minister of Marine and Blue Economy, Adegboyega Oyetola, for final approval.
While 20 applications have progressed to the Primary Lending Institutions (PLIs), not a single disbursement has occurred, blowing past the government’s initial 80- to 90-day processing projection.
This deadlock underscores fresh concerns over whether indigenous operators can satisfy the steep commercial terms attached to the long-awaited financing scheme.
Speaking at the Nigerian Chamber of Shipping (NCS) Members’ Evening in Lagos, themed “A Public-Private Dialogue: Unlocking Efficiency in the Marine and Blue Economy Value Chain”, Ms Iroghama Ogbeifun, a member of the NIMASA Governing Board and Managing Director of Starzs Investments Company Limited, explained that many applicants are failing the credit assessments conducted by their banks, which hold decisive sway over the approval pipeline.
She stressed that cargo guarantees are vital because they prove future cash flow, assuring lenders that vessels will earn enough to service debt.
Ogbeifun admitted that even her own firm could technically struggle to qualify due to its business model and the rigid bank requirements for long-term cargo contracts.
She noted that the single applicant whose file is before the minister should receive the $25 million payout before the end of 2026, adding that subsequent approvals will follow a strict first-come, first-served sequence once conditions are met.
Echoing these concerns, Dr. Olisa Agbakoba, Senior Partner at Olisa Agbakoba Legal, noted that the lack of guaranteed cargo actively deters commercial banks from backing otherwise capable shipowners.
He urged the NIMASA Governing Board to enforce the cargo reservation provisions of the Cabotage Act to explicitly tie vessel financing to cargo availability, pointing to the United States’ cargo preference framework as a viable model.
Delivering the keynote address, Edwin Devakumar, Vice President of Dangote Oil and Gas, revealed that the Dangote Group intends to purchase new vessels, eyeing China as a primary partner.
Citing Clarksons Research, Devakumar highlighted that Chinese shipyards held nearly 67 percent of global orders in 2025, adding that negotiations are planned to secure the first fleet batch by 2029.
These acquisitions will back the expansion of the Dangote Refinery from 700,000 barrels per day (bpd) to 1.4 million bpd over the next five years, supported partly by a $1.6 billion IPO opening September 14.
“Currently, the petroleum refinery alone is doing 75 to 100 ships a month. That’s 900 ships a year. Once we finish doubling the capacity, the refinery alone will need 1,800 ships a year,” Devakumar said.
In response, NCS President Aminu Umar argued that the $25 million CVFF limit falls short for operators aiming for major commercial capacity.
He observed that certain vessels on West African export routes run up to $50 million, while larger vessels require hundreds of millions of dollars.
Umar called for bolder financing structures to help indigenous shipowners scale their fleets and capture high-volume trade, particularly the soaring demand created by the Dangote Refinery expansion.
