Nigeria to end foreign shipping waivers, CVFF to attract single-digit interest rate

The Minister of Marine and Blue Economy, Adegboyega Oyetola, has announced plans to end the issuance of waivers under the Coastal and Inland Shipping Act 2003. Mr Oyetola said this on Sunday in a statement, following a meeting with a delegation from NNPC Shipping, Stena Bulk, and Caverton Offshore. The meeting took place at the Ministry in Abuja and reaffirmed Mr Oyetola’s commitment to reversing the over-reliance on waivers for foreign vessels in Nigerian waters. The visit coincided with the official unveiling of Unity Shipping World, a new joint venture by NNPC Shipping, Stena Bulk, and Caverton Offshore Support Group. The joint venture seeks to develop a strong tanker operation capable of transporting crude oil, refined products, and LNG across Nigeria, West Africa, and internationally.
The Cabotage Act restricts coastal shipping to Nigerian-owned, Nigerian-crewed, and Nigerian-built or -flagged vessels. However, waivers have frequently been granted to foreign vessels due to limited local capacity, undermining domestic shipping growth and competitiveness. Mr Oyetola criticised this long-standing trend, stating it hindered local shipping firms’ development and reduced opportunities for Nigerian maritime professionals. He said the decision aimed to strengthen the maritime sector, create jobs, and increase indigenous participation in the nation’s shipping industry. To support this policy shift, the minister instructed NIMASA to begin the disbursement process for the Cabotage Vessel Financing Fund. The fund, generated through cabotage levies, is designed to help Nigerian shipowners acquire vessels and expand their operational capabilities.
Mr Oyetola reiterated the urgency of disbursing the fund, calling it vital for empowering local operators in the face of reduced foreign waivers.
“As the waiver era ends, supporting indigenous shipowners becomes even more crucial,” he stated. He also reaffirmed the government’s plan to launch a national shipping carrier through a Public-Private Partnership, enhancing Nigeria’s maritime influence regionally. Caverton Offshore’s CEO, Bode Makanjuola, described the new joint venture as transformative for Nigeria’s maritime industry. He said USW would provide efficient, reliable, and sustainable marine transport services for the country’s growing energy needs. According to him, the company plans to build a modern fleet by acquiring new and existing vessels while focusing on cost and operational efficiency. Mr Makanjuola noted that the fleet would primarily support NNPC’s logistics but also serve other oil producers and energy traders. He stressed USW’s commitment to sustainability, safety, and training for Nigerian seafarers to ensure long-term industry growth.
Panos Gliatis, the managing director of NNPC Shipping, said the alliance would enhance domestic refining and support Nigeria’s global energy logistics role. Stena Bulk president and CEO Erik Hånell echoed this, highlighting the alignment of the venture with his company’s global strategy. “We are committed to operational excellence and growth in key energy markets. This partnership boosts Nigeria’s shipping and energy sectors,” Mr Hånell said.
Meanwhile the Cabotage Vessel Financing Fund (CVFF) to be disbursed by the Federal Ministry of Marine and Blue Economy through the Nigerian Maritime Administration and Safety Agency (NIMASA), shall attract a single-digit interest rate. The Agency’s Director General, Dr. Dayo Mobereola, who announced this today at a one-day interactive forum organized for stakeholders on the operationalization of the CVFF, also disclosed a two-year moratorium and an eight-year tenure for the facility, which will be disbursed through twelve (12) Primary Lending Institutions.
 Other issues being addressed by NIMASA in collaboration with the PLIs include insurance, fund security, flexible tenures, and the reduction of sundry fees to the barest minimum at subsidized rates. Dr. Mobereola emphasized the importance of the CVFF to the development of the Nigerian maritime sector, while acknowledging the role of President Bola Ahmed Tinubu, GCFR, through the Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola, CON, in ensuring the immediate disbursement of the funds.
 In his words: “I am delighted to announce that under President Bola Ahmed Tinubu’s leadership, and with the support of the Honourable Minister of Marine and Blue Economy, HE Adegboyega Oyetola, we have secured the necessary approvals for disbursement. This disbursement will be transformative for our industry by empowering indigenous shipowners to compete favourably, boost local content in the maritime sector, create employment opportunities for Nigerian seafarers, and strengthen ancillary maritime services.”  Mobereola also emphasized the need for transparency in the entire process. “To ensure transparency and accountability, we established a dedicated Secretariat Cabotage Unit, developed clear eligibility criteria, and partnered with 12 Primary Lending Institutions to facilitate access to the fund.” In his remarks, the President of the Nigerian Chamber of Shipping, Aminu Umar, and other industry stakeholders commended the Minister of Marine and Blue Economy, Adegboyega Oyetola, and the Management of NIMASA for their efforts in facilitating the disbursement of the funds. Former Director General of NIMASA, Temisan Omatseye, who had previously doubted the realization of the CVFF, also joined others in commending the NIMASA Management and the Honourable Minister of Marine and Blue Economy.