The continued delay in disbursing the Cabotage Vessel Financing Fund (CVFF) is costing Nigeria between $6 billion and $8 billion in yearly freight revenue, while leaving over 4,000 trained Nigerian seafarers unemployed, maritime experts have revealed.
Collapse of Indigenous Shipping Fleet
Stakeholders gathered at the recent PortNews Summit and 30th Anniversary in Apapa, Lagos, expressed alarm over the dramatic collapse of Nigeria's indigenous shipping capacity. The country's active fleet has dwindled from 24 vessels in 2005 to fewer than four by 2024, forcing foreign carriers to handle approximately 95% of Nigeria's maritime cargo.
Dr. Eugene Nweke, Head of Research at the Sea Empowerment and Research Centre (SEREC), provided a detailed analysis showing that while over 90% of Nigeria's trade moves by sea, indigenous fleet participation accounts for less than 5%. He emphasized that this imbalance reflects governance failures rather than legislative gaps in the maritime sector.
The $350 Million Dormant Fund
Established in 2003 to finance vessel acquisition by Nigerian shipowners, the CVFF has remained largely dormant despite accumulating over $350 million in contributions. No major disbursements have been made in the 18 years since its creation, despite the Ministry of Marine and Blue Economy and NIMASA having set August 2025 as the commencement date for fund distribution.
The President of the African Shipowners Association, Captain Ladi Olubowale, condemned the non-disbursement, noting that indigenous shipowners cannot afford the required 15% equity contribution outlined in the CVFF guidelines for vessel purchases.
Human Capital Drain in Maritime Sector
The crisis extends beyond financial losses to severe human capital erosion. Dr. Nweke highlighted that the majority of Nigeria's 4,000 trained seafarers remain unemployed due to limited sea-time opportunities and the absence of a national fleet to absorb cadets. Many qualified seafarers are now migrating to foreign vessels, accelerating the depletion of Nigeria's maritime expertise.
Mr. Wale Oni, Publisher of PortNews, described the continuous hoarding of the CVFF fund, estimated at $800 million, as "unwise" and counterproductive to the purpose for which the funds were generated.
Meanwhile, Dr. Abubakar Dantsoho, Managing Director of the Nigerian Ports Authority and President of PMAWCA, emphasized that regional cooperation among African nations is essential for advancing seaports across the continent. He expressed confidence that ports within the West and Central African sub-region are well-positioned to confront future challenges through collaborative efforts.
