The House of Representatives Committee on Maritime Safety, Education, and Administration has vowed to fully back the overhaul of Nigeria’s maritime legal framework and the promotion of indigenous vessel ownership. During an oversight visit to the Nigerian Maritime Resource Development Centre (NMRDC) in Kirikiri, Lagos, the Committee’s Deputy Chairman, Hon. Uduak Odudoh, acknowledged concerns raised by the Nigerian Maritime Administration and Safety Agency (NIMASA) regarding outdated maritime laws. He assured stakeholders that the National Assembly is committed to reviewing and modernizing these laws to align with global best practices and foster the growth of the local shipping industry.
One of the sector’s significant challenges, Odudoh pointed out, is the low level of indigenous vessel ownership. He revealed that less than five percent of ships within NIMASA’s regulatory oversight are owned by Nigerians. “This is unacceptable, and we believe the tide is about to turn,” Odudoh stated, citing the activation of the Cabotage Vessel Financing Fund (CVFF), which is now housed with the Central Bank of Nigeria. He expressed optimism that this move would soon empower more Nigerians to own and operate vessels.
The activation of the CVFF, according to Odudoh, is a potential game-changer for the maritime sector. It is expected to reduce capital flight, create jobs, and boost economic growth within the maritime value chain. He commended the Minister of Marine and Blue Economy for his decisive steps and urged NIMASA to create a robust and transparent framework for the fund’s implementation, emphasizing that this moment is pivotal in the nation’s maritime history.
Odudoh also highlighted the House Committee’s readiness to provide legislative and financial support, including approving supplementary budgets, to address operational challenges facing NIMASA and the maritime sector. He added that the Committee would extend its oversight visits to other NIMASA offices across the country to ensure consistent operational standards and improve service delivery nationwide.
During the visit, NIMASA’s Director-General, Dr. Dayo Mobereola, provided further updates on the long-awaited Cabotage Fund. He shared that the fund is nearing full operationalization, with new guidelines issued and the number of Primary Lending Institutions (PLIs) expanded from five to twelve. These PLIs will carry out risk assessments and contribute 35 percent of the loans, while NIMASA will provide 50 percent of the funding. Mobereola explained that this collaborative funding structure ensures only financially viable and competent Nigerian shipping companies can access the fund.
Mobereola described the CVFF as “revolving and patient capital” with single-digit interest rates and long repayment periods, designed to foster sustainable growth in the sector. He also disclosed ongoing talks with major cargo generators, including the Nigerian National Petroleum Company Limited (NNPC) and Nigeria LNG Limited (NLNG), to prioritize Nigerian-owned vessels in cargo allocation. This initiative would guarantee market opportunities for CVFF beneficiaries, ensuring that they have both the funding and the market access needed to compete globally.
The commitment of both the House of Representatives and NIMASA marks a crucial step toward revitalizing Nigeria’s maritime sector and supporting indigenous shipowners.
