Requirements by some of the shortlisted Primary Lending Institutions (PLIs) may force many indigenous shipowners to abandon plans to apply for the $700 million Cabotage Vessel Financing Fund (CVFF) that will be made available by the Nigerian Maritime Administration and Safety Agency (NIMASA) any time soon, checks by the Nigerian Tribune have revealed.

Recall that NIMASA had in May 2025 announced that Fidelity Bank, Stanbic IBTC, Jaiz Bank, Optimus Bank, First Bank, SunTrust Bank, Union Bank, Zenith Bank, Lotus Bank, United Bank for Africa (UBA), and the Bank of Industry (BOI), are to disburse the $700m CVFF to indigenous shipowners.

However, speaking with the Nigerian Tribune exclusively, the Chief Executive Officer of Bricks Murstern Mattoni Limited, Mr. Emmanuel Maiguwa, revealed that some of the very difficult Terms and Conditions demanded by the banks for the CVFF disbursement includes purchase of a brand-new vessel, possession of a Bank Draft, and a Mortgage to be registered in the Flag of the new vessel.

According to Maiguwa who is also the President of the Maritime Security Providers Association of Nigeria (MASPAN), “There was a meeting with NIMASA where they showed us how we can apply for the CVFF. They showed us an application platform where a shipowner can apply for the fund on their website. However, after the meeting, some of us tried to check the website, but the link was no longer there.

“It is after shipowners apply via that platform on NIMASA website and qualifies that the shipowner can proceed to the commercial banks for necessary due-diligence by the banks before the funds are disbursed to the applicants (shipowners).

“But on a personal note, I have approached three out of the shortlisted banks to find out their requirements. We went to ask the banks that even though NIMASA has not given the go-ahead to apply, what are their requirements based on their dealings with NIMASA.”

I must tell you that all what the three commercial banks put forward to me as their requirements are not suitable for any shipping business model.

“So, I am telling you for free that personally, as a businessman, I won’t be able to access the CVFF on the basis of the proposals that were put forward to me by the three commercial banks.

“Now, I don’t know how the banks got to the decisions of the Terms and Conditions that they have attached to the CVFF disbursement, but those terms and conditions are not favourable to my business. Those Terms and Conditions are not a favourable model for ship acquisition. I don’t see any shipowner, who wants to seek financial support with the intention to borrow and pay back, accessing that fund, except the person wants to be fishy about it.

“The deal put forward by the Nigerian Content Development and Monitoring Board (NCDMB) is far better than what is stated in the banks Terms and Condition of the PLIs for the $700m CVFF. It’s just that the value that NIMASA is offering in the CVFF is higher than what the NCDMB offers.”

Speaking on the Terms and Conditions demanded by the banks, Maiguwa stated that, “Out of the three banks that I approached, two are demanding for a brand-new vessel and a Bank Draft. For this, except the shipowner has a contract and a commitment, meeting that requirement is almost impossible.

“Again, one of the banks required a Mortgage to be registered in a Flag when you are building a vessel. My experience with this is that the Nigerian Ship Registry does not have Flag to Flag transfer for Mortgage. So this various criteria make the CVFF disbursement dead on arrival for indigenous shipowners except some people want to be mischievous.

“Nigerian banks lack marine expertise to understand models of running vessel acquisition. I don’t know the criteria used in qualifying the banks to become PLIs, but the conditions placed by the banks are the conditions that will be placed on businessmen seeking funds for properties or vehicles acquisition. That cannot work under vessel acquisition.

“I have spoken to some few shipowners, and some of them are not going for the NIMASA CVFF. They have gotten better funding options sources outside Nigeria when compared to the CVFF.

“One of the shipowners I spoke with just received some vessels without waiting for when the CVFF will be disbursed.” (Nigerian Tribune)