On Thursday, Minister of Marine and Blue Economy, Adegboyega Oyetola, announced in Lagos that the Nigerian Maritime Administration and Safety Agency (NIMASA), in collaboration with stakeholders, has finalized arrangements for the disbursement of the $350 million (N525 billion) Cabotage Vessel Financing Fund (CVFF).
The minister revealed that the disbursement of the CVFF will provide indigenous shipping operators with the opportunity to acquire new vessels and enhance their capacity, a crucial step for the nation’s maritime sector. Nigeria has reportedly been losing up to N1 trillion annually due to the non-disbursement of the fund.
Oyetola emphasized that the government’s support for private investors is essential for the development of new greenfield port projects across the country. Notable port projects include Badagry, Ilaje, Olokola, Agge, Ibaka, Burutu, Snake Island, and Bakassi deep sea ports, as well as the development of river ports and jetties.
Key Developments in the Maritime Sector:
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Cabotage Vessel Financing Fund (CVFF): Nearly ready for disbursement, the fund is expected to support the acquisition of vessels by indigenous operators. NIMASA is almost done finalizing the process, with transparency and accountability being prioritized in the disbursement process.
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Port Rehabilitation Projects: These projects, including the modernization of Western Ports (Lagos Port Complex, Apapa and Tin-Can Island Port Complex), are expected to generate over 20,000 jobs. The NPA is focused on upgrading ports to accommodate larger vessels, reversing revenue loss to neighboring ports.
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Inland Dry Ports: The development of dry ports, such as those in Katsina, Kano, and Kaduna, is progressing. These inland ports help improve trade logistics, and additional facilities in Abia, Plateau, and Borno states are also in the pipeline.
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Public-Private Partnerships (PPP): The ministry is promoting PPPs to attract private investment in port modernization, channel dredging, automation, and inland waterways development.
Oyetola also highlighted that the government is leveraging the Lagos-Calabar Coastal Highway to drive blue tourism, support fisheries industries, and promote eco-tourism. Additionally, the National Single Window (NSW) project is being implemented to streamline trade compliance processes and improve efficiency.
Blue Economy and National Growth:
Oyetola reiterated the government’s focus on harnessing the blue economy, which includes maritime shipping, shipbuilding, ports infrastructure, and coastal tourism, among other sectors. The ministry is working on a National Blue Economy Strategy and a draft policy for the sector that emphasizes the role of technology and private-sector initiatives in boosting the economy.
He commended President Bola Tinubu for establishing the dedicated Ministry of Marine and Blue Economy, which reflects the administration’s vision of unlocking the potential of marine resources to drive national prosperity. Oyetola revealed that a 10-Year Roadmap has been crafted to guide the implementation of the sector’s strategy.
Port Modernisation and Job Creation:
Oyetola confirmed that the modernisation of seaports remains a top priority for the government. The approval of a contract for the modernisation of Western Ports is a key step in ensuring Nigeria’s ports become a transshipment hub for the sub-region. The ongoing port rehabilitation projects, including dredging efforts to increase port drafts from 12-13 meters to 16-17 meters, are expected to create substantial employment opportunities, generating over 20,000 jobs.