Nigeria to disburse $350m cabotage fund, boost shipping
Adegboyega Oyetola, Minister of Marine and Blue Economy, announced in Lagos on Thursday that the Nigerian Maritime Administration and Safety Agency, in collaboration with maritime stakeholders, has finalized plans to disburse the Cabotage Vessel Financing Fund worth $350 million (N525 billion).Oyetola stated that the Nigerian Ports Authority's port rehabilitation projects are expected to generate more than 20,000 jobs.
Oyetola made these remarks during an interactive session with Lagos-based print media editors.
He emphasized that seaport modernization is a top priority for the Tinubu administration.
The minister stated that the government is encouraging private investors to participate in greenfield port projects such as Badagry, Ilaje, Olokola, Agge, Ibaka, Burutu, Snake Island, and Bakassi deep seaports, as well as the development of river ports and jetties throughout the country.
He stated that the distribution of the CVFF would assist indigenous shipping operators in acquiring new vessels and increasing capacity.
Nigeria is estimated to lose N1 trillion per year due to the fund's non-disbursement.
Section 44, Part VIII of the Cabotage Act 2003 establishes the Cabotage Vessel Financing Fund (CVFF), which is funded by a 2% deduction from cabotage-protected trade earnings to promote the development of indigenous shipping capacity in Nigeria.
Oyetola stated that his ministry is developing a transparent and accountable template for the fund's disbursement, and that efforts are being made to involve development banks in the process.
"I am glad to inform you that NIMASA is working on this and has almost completed the process," he told me.
Oyetola stated that inland dry ports are being built nationwide to improve trade facilitation.
He pointed out that these ports act as cargo handling and clearance hubs, increasing logistics efficiency and access to international markets.
"Funtua Dry Port in Katsina State was recently commissioned. Similar facilities in Kano and Kaduna are already in place to support trade operations.
"Dry port development in Abia, Plateau, and Borno states is in various stages of completion to strengthen the country's trade infrastructure. "Additional dry ports in Oyo, Ogun, and other states are planned," he stated.
The Minister also stated that the ministry is working with the Federal Ministries of Transportation and Works to rehabilitate internal access roads and improve port connectivity, with the goal of reducing congestion and transit time.
"Furthermore, we are leveraging the Lagos-Calabar Coastal Highway to drive blue tourism, support fisheries industries, and promote eco-tourism."To improve trade facilitation, the government is implementing the National Single Window (NSW) project.
"This digital platform will streamline trade compliance processes, link ports with relevant government agencies and stakeholders, and create a seamless, efficient system," he told me.
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