To reshape Nigeria’s maritime landscape, the House of Representatives Committee on Maritime Safety, Education, and Administration has committed to providing full legislative backing for the modernization of the nation’s maritime laws. This pledge, made during an oversight visit to the Nigerian Maritime Resource Development Centre in Kirikiri, Lagos, signals a strong intent to create a more enabling environment for operators within the crucial sector.
The Deputy Chairman of the Committee, Honourable Uduak Odudoh, directly addressed concerns raised by the Nigerian Maritime Administration and Safety Agency (NIMASA) regarding the current outdated legal framework. “We recognize the challenges posed by antiquated laws,” stated Hon. Odudoh, assuring stakeholders that the House of Representatives would act swiftly “to review and update the legal framework governing Nigeria’s maritime sector to enable a more enabling environment for operators.”
A key area of concern highlighted by the committee is the alarmingly low rate of indigenous vessel ownership. Hon. Odudoh lamented that a mere five per cent of vessels operating under NIMASA’s authority are owned by Nigerians. This stark statistic underscores the significant capital flight and limited job creation within the domestic maritime industry.
However, a beacon of hope shines through with the anticipated activation of the Cabotage Vessel Financing Fund (CVFF). “With the CVFF finally set in motion, there is hope that more Nigerians will own vessels, thereby reducing capital flight and creating employment opportunities,” Hon. Odudoh asserted. He further commended the Minister of Marine and Blue Economy and tasked NIMASA with developing a “robust implementation strategy,” emphasizing that “This is a critical moment in our maritime history.”
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The Director-General of NIMASA, Dr. Dayo Mobereola, shed light on the progress of the long-awaited CVFF. He announced that the fund is expected to become operational within the next three to four months, following the implementation of updated guidelines and a strategic expansion of partnerships with financial institutions. “We have expanded the number of Primary Lending Institutions from five to 12,” Dr. Mobereola explained. “These banks will carry out the initial risk assessment and contribute 35 per cent of the loan, while NIMASA will provide 50 percent.” This collaborative approach aims to streamline the disbursement process and ensure wider access to the approximately $700 million fund for indigenous shipowners.
This development comes on the heels of a directive from the Minister of Marine and Blue Economy, Adegboyega Oyetola, instructing NIMASA to initiate the disbursement process. The combined efforts of the legislative and executive branches signal a renewed commitment to empowering Nigerian entrepreneurs in the maritime sector and fostering growth within the blue economy. For seasoned observers like myself, this coordinated action offers a tangible prospect for a more robust and domestically driven Nigerian maritime industry in the years to come. The effective implementation of these legislative updates and the transparent disbursement of the CVFF will be crucial in translating these promises into tangible progress for Nigerian shipowners and the nation’s economy.
