The African Shipowners Association (ASA) has fully supported the decision to disburse the $700 million Cabotage Vessel Financing Fund (CVFF) through Nigerian banks at a single-digit interest rate, describing it as a crucial step toward ensuring transparency, professionalism, and stronger accountability in Nigeria’s maritime sector.
Speaking ahead of the scheduled August 2025 disbursement by the Nigerian Maritime Administration and Safety Agency (NIMASA), Captain Ladi Olubowale, President of the ASA, emphasized that involving banks in the financing process aligns Nigeria with international best practices. Countries like Japan, China, and Indonesia, he noted, have long recognized the strategic importance of bank-led ship financing for developing their domestic shipping industries, and Nigeria should follow the same path.
Olubowale, who also serves as Managing Director of Seamate Maritime Integrated Services, highlighted a persistent challenge in Nigeria’s banking sector: most banks lack dedicated maritime desks and often group maritime lending under their energy portfolios. According to him, channeling CVFF through banks will not only enhance due diligence but also encourage financial institutions to build expertise in maritime lending, creating dedicated departments that understand the nuances of the shipping business.
Drawing from his own experience, Olubowale explained that securing bank financing for maritime ventures in Nigeria has historically been difficult, largely due to a lack of industry understanding among financial institutions. “Many shipping firms have collapsed because shipowners tried to manage complex operations without adequate financial structures or expertise,” he noted.
The CVFF disbursement, he argued, represents a transformative opportunity. It could empower more Nigerians to own and operate vessels, increase the number of Nigerian-flagged ships competing in coastal and African waters, and reduce reliance on foreign vessels, which currently dominate regional shipping.
“This is our chance to take control of our waters and strengthen indigenous participation,” Olubowale stated.
In addition to supporting domestic shipping, Olubowale believes the CVFF initiative will bolster national efforts to expand Nigeria’s petroleum industry. By complementing Nigerian National Petroleum Company Limited (NNPCL)’s upstream and downstream expansion projects, a stronger maritime sector could provide the logistics backbone needed for oil and gas growth.
He also projected that Nigeria could emerge as a leading hub for trained, certified, and qualified seafarers, with positive ripple effects across the entire African continent. However, Olubowale stressed that proper groundwork is essential to ensure the fund’s success. “Disbursement is only the first step. We must ensure readiness, execution, and long-term sustainability are in sync,” he warned.
Regarding the readiness of ASA members for the CVFF rollout, Olubowale revealed that both ASA Africa and ASA Nigeria comprise companies that not only trade locally but also operate across various African routes. All ASA Nigeria member vessels, he added, are licensed by NIMASA and meet international regulatory standards set by the International Maritime Organisation (IMO) and various classification societies.
The association maintains a robust database that tracks member activities, cargo movements, and vessel operations—a resource developed through years of research and advocacy. This database will be crucial for monitoring the impact of the CVFF disbursement and supporting the development of Nigeria’s maritime ecosystem.
Looking ahead, Olubowale urged NIMASA to intensify engagement with stakeholders before August. He recommended early sensitization and education campaigns to inform shipowners about the requirements for accessing the fund. Ultimately, he said, Nigeria must use this opportunity not just to build more ships but to develop a stronger, self-sufficient maritime industry capable of driving economic growth across Africa.
