Funding Maritime Asset Acquisition For Nigerian Indigenous Operators – written by Joseph B. Siyaidon (Associate – Maritime, Aviation and Space Practice)
President Mohammadu has ordered the disbursement of the Cabotage Vessel Financing Fund (CVFF) to qualified operators in the Maritime Industry. The funds will be disbursed for the first time since its creation almost 18 years ago. The CVFF is a fund created to encourage indigenous ship acquisition by providing financial support to deserving operators in the Maritime Industry.
This short piece examines the legal regime of the CVFF and the conditions prescribed by the Nigerian Maritime Administration and Safety Agency (NIMASA) for prospective beneficiaries to access the fund.
Establishment of the Fund
As observed earlier, the CVFF was created by Section 42 (1) – (2) of the Cabotage Act 2003 with the aim of promoting indigenous ship acquisition capacity by providing financial assistance to Nigerian operators in the domestic coastal shipping industry.