The Federal Government has assured indigenous shipowners that the long-awaited Cabotage Vessel Financing Fund (CVFF) will be disbursed.

The assurance comes amid growing concerns among maritime stakeholders who fear that the latest promise of disbursement could become another failed pledge after years of delays, missed deadlines and unfulfilled commitments by successive administrations.

Industry operators say they remain cautious despite the renewed commitment by the Federal Government through the Ministry of Marine and Blue Economy to facilitate the release of the estimated $700 million fund.

More than 60 indigenous shipping companies are said to have submitted applications through the CVFF portal launched earlier this year.

Stakeholders noted that nearly every administration since the enactment of the Cabotage Act in 2003 had pledged to release the fund without success.

Similar assurances were made during the administrations of former Presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, Goodluck Jonathan and Muhammadu Buhari.

Amaechi, repeatedly assured stakeholders that efforts were underway to activate the fund but cited bureaucratic bottlenecks for the delays. His successor, Mu’azu Jaji Sambo, announced in December 2022 that President Buhari had approved the disbursement of the CVFF and assured operators that the fund would soon be released. Despite those assurances, the money never reached beneficiaries.

According to a Shipowner, “We have heard these promises before. Every few years, government announces that the CVFF will be disbursed and the industry becomes hopeful. Then something happens and the process stalls. What shipowners want now is action, not another announcement.”

Beyond concerns over whether the fund will eventually be released, stakeholders have also raised fears that the facility could be diverted to politically connected individuals rather than genuine shipowners.

According to industry operators, the CVFF was established to support vessel acquisition and fleet expansion by indigenous shipping companies and should not be transformed into a political patronage scheme.

A senior member of the Nigerian Indigenous Shipowners Association (NISA) warned that the industry would resist any attempt to allocate the fund to politicians or individuals without verifiable shipping operations.

“The CVFF was established to build indigenous shipping capacity. It was not designed as a political empowerment programme. If the money ends up in the hands of people who are not genuine shipowners, then the objective of the fund has already been defeated,” he said.

The concerns stem partly from the experience of the defunct Ship Acquisition and Ship Building Fund (SASBF), introduced in the 1990s to support indigenous shipping. Stakeholders recalled that many beneficiaries of the programme lacked the operational capacity required to utilise the facility effectively, resulting in widespread loan defaults and the eventual failure of the scheme.

Maritime experts warned that a similar outcome could occur if rigorous screening is not applied to applicants under the CVFF programme.

A former maritime administrator said the fund must be restricted to operators with proven shipping experience and active participation in the sector.

“The purpose of the CVFF is to increase the number of vessels owned and operated by Nigerians. It is not a wealth distribution scheme,” he said.

Under the current framework, successful applicants can access up to $25 million at a single-digit interest rate of 6.5 per cent, with an eight-year repayment period and a two-year moratorium.

The Director-General of NIMASA, Dr. Dayo Mobereola, has assured stakeholders that applications are undergoing detailed credit and risk assessments through approved Primary Lending Institutions to ensure that only qualified applicants emerge successful.

While the assurance has been welcomed, many shipowners insist that confidence in the process will only be restored when the funds are eventually disbursed and the identities of beneficiaries made public.

For stakeholders, the CVFF has reached a critical stage after more than 23 years of delays, with many expressing hope that the Federal Government’s latest assurance will finally translate into action and help boost indigenous shipping capacity in the country.