FG Enlists Devt Banks To Revive Indigenous Shipping With $350M Fund

FG Enlists Devt Banks To Revive Indigenous Shipping With $350M Fund

The Minister of Marine and Blue Economy, Adegboyega Oyetola, announced in Lagos that the Nigerian Maritime Administration and Safety Agency (NIMASA) has finalized plans, in collaboration with industry stakeholders, to commence the disbursement of the $350 million (N525 billion) Cabotage Vessel Financing Fund (CVFF).……READ MORE 

Speaking at an interactive session with media editors, Oyetola revealed that the Nigerian Ports Authority (NPA) is spearheading port rehabilitation projects expected to generate over 20,000 jobs, aligning with President Bola Ahmed Tinubu’s modernization agenda for the nation’s seaports.

The minister emphasized that the government is actively supporting private investors in developing greenfield port projects, including the Badagry, Ilaje, Olokola, Agge, Ibaka, Burutu, Snake Island, and Bakassi deep sea ports, alongside the construction of river ports and jetties across the country.

Oyetola highlighted that the CVFF disbursement will empower indigenous shipping operators to acquire new vessels, boosting Nigeria’s maritime capacity. He pointed out that the nation loses approximately N1 trillion annually due to the delayed release of these funds.

Established under Section 44, Part VIII of the Cabotage Act 2003, the CVFF is funded through a two percent deduction from cabotage-protected trade earnings, intended to expand Nigeria’s shipping industry.

To ensure transparency and accountability, the ministry is partnering with development banks to oversee the disbursement process.

“I am pleased to inform you that NIMASA has nearly completed this process,” Oyetola stated.

The minister also revealed that inland dry ports are being developed across Nigeria to facilitate trade and logistics efficiency.

“Recently, the Funtua Dry Port in Katsina State was commissioned, while facilities in Kano and Kaduna are already operational,” he said.

Additionally, dry port projects in Abia, Plateau, and Borno states are in various stages of development, with plans to establish new dry ports in Oyo, Ogun, and other states.

To ease port congestion and improve transit times, the ministry is collaborating with the Federal Ministries of Transportation and Works to rehabilitate internal access roads and enhance connectivity.

Oyetola noted that the Lagos-Calabar Coastal Highway will play a key role in promoting blue tourism, fisheries industries, and eco-tourism.

Additionally, the government is rolling out the National Single Window (NSW) project, a digital trade compliance platform aimed at integrating ports with government agencies and streamlining operations.

The minister stressed the economic potential of the maritime sector, which encompasses maritime shipping, shipbuilding, port infrastructure, coastal tourism, aquaculture, renewable energy, seabed mining, marine biotechnology, and water desalination.

He commended President Tinubu for establishing a dedicated ministry for the marine and blue economy, describing it as a bold step towards unlocking Nigeria’s marine resources and positioning the country as a premier maritime nation in line with Africa’s Agenda 2063.

The ministry has prioritized the development of a strong regulatory, legal, and institutional framework to govern Nigeria’s maritime sector.

As part of this strategy, the ministry engaged key stakeholders, including the World Bank, NESG, AU-IBAR, and WorldFish, to craft Nigeria’s National Blue Economy Strategy document.

Oyetola also disclosed that the National Draft Policy for Marine and Blue Economy is ready for Federal Executive Council approval and has been designed as a 10-year roadmap for sector growth.

“We have ensured that both the process and outcomes receive diligent attention, with the goal of creating a holistic national policy for the sector,” he said.

Oyetola revealed that the Federal Executive Council recently approved contracts for the modernization of the Western Ports (Apapa and Tin-Can Island Ports), with a 48-month completion timeline.

The modernization of Eastern Ports is also being fast-tracked to enhance Nigeria’s competitiveness as a transshipment hub in West Africa.

“Once completed, our port draft will increase from 12-13 meters to 16-17 meters, enabling larger vessels to berth and reducing revenue losses to ports in Tema, Lome, and Cotonou,” he explained.

Furthermore, the government is encouraging Public-Private Partnerships (PPPs) to attract investments in port automation, inland waterways development, ferry services, cargo handling, and terminal operations.

The minister reaffirmed that these initiatives will boost employment, drive economic growth, and solidify Nigeria’s position as a maritime powerhouse.