For over two decades, the Cabotage Vessel Financing Fund (CVFF) has been a beacon of hope for Nigerian ship owners. Envisioned under section 42 of the Coastal and Inland Shipping (Cabotage) Act 2003, the fund—fed by a mandatory 2% contribution from coastal operators—was designed to empower indigenous shipowners to compete in Nigeria’s maritime industry. Yet, 21 years later, not a single shipowner has benefitted from it. Now, recent assurances from NIMASA’s Director General, Dr. Dayo Mobereola, claim that the CVFF funds are “safe, intact, and secure” at the Central Bank of Nigeria under the Treasury Single Account (TSA). But does this really address the lingering questions about why the fund has remained inaccessible?
The CVFF: A Fund Frozen in Time?
Dr. Mobereola insists that reports of missing funds are “false and misleading,” urging the public to trust in NIMASA’s commitment to transparency and accountability. According to him, there have been no irregularities, and the funds will eventually be disbursed in line with their statutory purpose. But here’s the problem: if the CVFF is truly intact, why has it taken 21 years for NIMASA to make meaningful progress? Indigenous shipowners desperately need these funds to build capacity and compete against foreign operators who dominate Nigeria’s coastal trade.
Every year that passes without disbursement only weakens local players and deepens suspicions about the fund’s actual status.
The Numbers Don’t Add Up
Over two decades, billions of naira should have accrued in the CVFF. Despite Dr. Mobereola’s reassurances, no exact figures have been disclosed to the public. How much is currently in the CVFF account? If the fund is growing annually through ongoing contributions, why hasn’t it been disbursed or invested to ensure maximum impact?
The CVFF started accumulating funds in 2004, and by 2011, it reportedly had over $100 million. Today, the fund has reportedly grown to $360 million. This represents a 3.6-fold increase over 13 years.To put this in perspective, the fund’s annual growth rate averages around 10.5%. While this growth is steady, it raises questions about whether it is commensurate with the potential revenue from Nigeria’s bustling maritime industry.
More concerning are the allegations from 2021, where the House of Representatives accused former Minister of Transportation, Rotimi Amaechi, and NIMASA of diverting $195 million from the CVFF to fund the controversial Deep Blue Project. These claims, coupled with NIMASA’s failure to provide a detailed financial audit, continue to cast a shadow over the agency’s integrity.
Promises Without Action
Dr. Mobereola’s statement reiterates NIMASA’s commitment to disburse the CVFF “soon.” However, indigenous shipowners have heard similar promises repeatedly over the past decade. Over 45 deadlines for disbursement have come and gone without explanation.This pattern of delay undermines trust in NIMASA’s leadership and raises the question: if the funds are indeed safe, what’s causing the delay? Is it bureaucratic red tape, mismanagement, or something more troubling?
The Stakes for Indigenous Shipping
Every day that the CVFF remains inaccessible, Nigeria’s indigenous shipping industry suffers. Local operators cannot acquire vessels or compete with better-equipped foreign companies. This failure doesn’t just hurt individual businesses; it undermines the Cabotage Act’s goal of promoting local participation in Nigeria’s maritime trade. Foreign dominance in Nigeria’s coastal trade is costing the country billions in lost revenue. Allowing this to continue is an affront to the very spirit of the Cabotage Act. How can NIMASA claim to uphold the integrity of Nigeria’s maritime sector when its most critical fund remains frozen?
Transparency Is Non-Negotiable
If NIMASA is genuinely committed to transparency, several steps are non-negotiable:
1. Disclose the CVFF balance. Nigerians deserve to know the exact amount accrued in the fund over the past 21 years.
2. Set a definitive disbursement timeline. Vague assurances are no longer enough.
3. Provide a comprehensive audit. Independent auditors should verify the CVFF’s status and address past allegations of diversion.
4. Establish accountability mechanisms. Clear guidelines and oversight must be implemented to ensure the CVFF is used for its intended purpose.
The Bigger Picture
The CVFF’s story is not just about ships and funds; it’s a test of Nigeria’s ability to manage its resources transparently and effectively. NIMASA’s leadership under Dr. Mobereola and the Ministry of Marine and Blue Economy must recognize the gravity of this issue. If they cannot fulfill the fund’s purpose, they should step aside for those who can.The question remains: How long will NIMASA’s promises go unfulfilled, and how much longer can Nigeria’s indigenous shipping industry survive without the lifeline it was promised?
Join the Conversation
What do you think is delaying the CVFF’s disbursement? Is it mismanagement, bureaucracy, or something more sinister? Share your thoughts in the comments below. Let’s demand accountability and ensure Nigeria’s maritime industry doesn’t sink under the weight of broken promises.
