The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has called on the Federal Ministry of Marine and Blue Economy to adopt stringent verification measures before disbursing the long-awaited $700 million Cabotage Vessel Financing Fund (CVFF) to shipowners.

According to the association, some applicants may be moribund or heavily indebted, which could lead to the diversion of funds toward loan repayment instead of vessel acquisition or maritime capacity development.

In a letter dated April 30 and sighted by The Guardian, which was addressed to the Minister, Adegboyega Oyetola, the APFFLON’s National President, Frank Ogunojemite, cautioned against the indiscriminate disbursement of the fund, citing the mismanagement of similar funds in the past.

He referenced the former Ship Acquisition and Ship Building Fund, which, he noted, was allegedly squandered by some beneficiaries on personal indulgences rather than sector’s development.

“We are not against the disbursement, but we call for the verification of the ship owners to ensure they are in business and viable enough to be entrusted with such an amount of money,” the letter stated.

The group stressed the need for due diligence, urging the ministry to set up a committee to assess the credit ratings and financial obligations of potential beneficiaries.

“APFFLON also recommended post-disbursement monitoring to ensure funds are used as intended, warning that failing to do so would “add to the problem,” the letter stated.

The association reaffirmed its commitment to supporting the ministry’s vision and pledged continued collaboration to strengthen Nigeria’s maritime sector.

The association further commended Oyetola’s bold reforms and praised his decisive approval for the commencement of CVFF disbursement by the Nigerian Maritime Administration and Safety Agency (NIMASA).