By: Joy Enamuna

The Sea Empowerment and Research Center (SEREC) has expressed concern over the prolonged delay in disbursing the Cabotage Vessel Financing Fund (CVFF), which has accumulated approximately ₦16 billion and $350 million.

The fund was established to support indigenous ship acquisition and provide financial aid to local maritime operators, but its delayed release has hindered its intended impact on Nigeria’s maritime industry.

SEREC attributed the delay to bureaucratic red tape, lack of transparency, and competing government priorities.

The Nigerian Maritime Administration and Safety Agency (NIMASA) had previously estimated that proper utilization of the CVFF could create over 10,000 jobs and generate ₦50 billion in annual revenue.

However, these potential benefits remain unrealized due to continued inaction.

The organization called on the government to simplify and accelerate the disbursement process, establish clear guidelines, and ensure transparency in decision-making.

It urged authorities to recognize the CVFF’s importance in strengthening Nigeria’s participation in the African Continental Free Trade Area (AfCFTA) and allocate the necessary resources for its immediate implementation.

SEREC emphasized the need for a clear timeline for disbursement, regular updates on the process, and sufficient funding to support the initiative.

Expressing concerns over possible political interference, SEREC highlighted the need for a merit-based approach in managing the fund.

It stressed that decisions should be guided by technical considerations rather than political affiliations. Strengthening oversight mechanisms and fostering open communication among stakeholders would help ensure that the fund serves its intended purpose.

The organization noted that the CVFF, if disbursed, would significantly impact the maritime industry by empowering local shipowners with modern vessels, creating jobs, stimulating economic growth, and improving maritime infrastructure such as ports, terminals, and ship repair facilities.

It argued that proper utilization of the fund would enhance Nigeria’s maritime competitiveness within Africa, increase government revenue, and provide economic opportunities for Nigerian citizens.

SEREC urged the government to demonstrate its commitment to the maritime industry by taking immediate action to address the challenges delaying the CVFF’s disbursement.

It stressed that the economic benefits of the fund far outweigh any bureaucratic or political considerations, adding that stakeholders in the industry are eagerly awaiting tangible progress.