Olubowale: CVFF Success Depends on Linking Vessel Finance to Cargo Opportunities
Olubowale: CVFF Success Depends on Linking Vessel Finance to Cargo Opportunities
Former President of the African Shipowners Association, Captain Ladi Olubowale, has said the success of Nigeria’s Cabotage Vessel Financing Fund (CVFF) should be measured by how effectively its financing supports actual maritime trade opportunities.
Olubowale made the statement during a roundtable meeting with members of the Maritime Reporters Association of Nigeria in Apapa, Lagos.
He said a $25 million CVFF facility could be sufficient to acquire a sizeable vessel where the financing is backed by identifiable cargo and long-term trade contracts.
According to him, linking vessel financing to specific trade opportunities would provide shipowners with a clearer basis for generating revenue and servicing the financing. He stressed that vessel acquisition should be guided by the type and volume of cargo available for the vessel to serve.
The Federal Government’s CVFF programme provides eligible Nigerian shipping companies with access to up to $25 million each for vessel acquisition. The application portal for the scheme was launched in January 2026.
Olubowale’s position underscores the need for CVFF financing to be tied to commercially viable maritime activities and identifiable cargo opportunities.
