‘We propose using the Cabotage fund to build asustainable ship-management ecosystem’

Nigeria’s maritime market remains heavily dominated by foreign players, a reflection of long-standing dependencies that have stifled local capacity. Although the government pledged a revival through the disbursement of the Cabotage Vessel Financing Fund (CVFF) this year, progress has been scarce. In this interview, James Jolapamo, a maritime consultant and founder of Ship2Ship Solutions, speaks with Bethel Olujobi about the idea behind

NMS-BEAP25 and his plan to reclaim Nigeria’s lost maritime capital. Excerpts:

What is the NMS-BEAP25 programme?

The NMS-BEAP25 programme, which stands for the New Model for Sustainable Business and Economic Advancement Programme 25, is an innovative initiative designed to promote sustainable economic practices and enhance business models in various sectors. This programme aims to address the pressing challenges of economic sustainability, social equity, and environmental stewardship that businesses face in today's rapidly changing global landscape.

The core objective of the NMS-BEAP25 programme is to provide a comprehensive framework that supports organizations in adopting sustainable practices that not only benefit their bottom line but also contribute positively to society and the environment. By integrating sustainability into business strategies, the programme encourages companies to rethink their operational processes, supply chains, and overall impact on the planet.

One of the key components of the NMS-BEAP25 programme is its focus on collaboration among diverse stakeholders, including businesses, governments, non-profit organizations, and local communities. This collaborative approach fosters knowledge sharing, resource pooling, and innovative problem-solving, which are essential for driving sustainable economic growth. The programme also emphasizes the importance of capacity building, offering training and resources to help organizations develop the skills necessary to implement sustainable practices effectively.

Moreover, the NMS-BEAP25 programme incorporates a robust evaluation and monitoring framework that allows participating organizations to track their progress and measure the impact of their sustainability initiatives. This data-driven approach not only helps businesses to identify areas for improvement but also provides valuable insights that can inform policy decisions and best practices across industries.

In conclusion, the NMS-BEAP25 programme represents a significant step towards fostering a more sustainable and equitable economic future. By equipping businesses with the tools and knowledge they need to thrive in a sustainable manner, the programme seeks to create a ripple effect that benefits not only individual organizations but also the broader community and environment in which they operate.

What is the NMS-BEAP25 programme?

NMS-BEAP25 is a comprehensive and strategic 10-year national programme aimed at addressing and reversing an estimated annual economic leakage of approximately $120 billion. This substantial economic loss has been a persistent issue, hindering the growth and development of various sectors within the nation. The programme has been meticulously designed to not only mitigate this leakage but also to foster a robust and sustainable economic environment. Our primary objective over the next two years is to realign and effectively leverage the Cabotage Vessel Financing Fund (CVFF), which is a crucial financial instrument in our maritime sector.

Traditionally, the CVFF has operated on a 100 percent disbursement model. This model, while well-intentioned, has primarily benefited a select few individuals or entities without making a significant impact on the overall Gross Domestic Product (GDP) of the country. In contrast, we propose a transformative approach that utilizes the CVFF as a means of financial leverage, aimed at building a sustainable ship-management ecosystem. This innovative strategy will not only enhance the operational efficiency of our maritime activities but also ensure that the economic benefits are distributed more equitably across the sector.

By adopting this new model, we can extend the commercial value of vessels beyond the conventional 10-year profit cycle, transitioning towards a visionary 100-year sustainability plan. This long-term perspective is essential for creating a resilient maritime industry that can adapt to changing global economic conditions while maximizing the utilization of our maritime resources.

What inspired this initiative?

The inspiration for the NMS-BEAP25 programme can be traced back to a thought-provoking memoir write-up that I shared within a WhatsApp group. This initial sharing ignited an intense and passionate discussion surrounding the concept of the Blue Economy and the potential of the CVFF to drive economic growth. Participants in the conversation raised pertinent questions about the success of countries like China and other Asian economies, which have effectively harnessed trillions of U.S. dollars in GDP and trade through their well-developed maritime sectors. In stark contrast, Nigeria, despite possessing strategic sea-going corridors and abundant maritime resources, has struggled to even reach a billion dollars in maritime-related GDP.

This disparity fueled a robust debate that ultimately led us to the development of a compelling business case. Within approximately four months, this initial concept evolved into a comprehensive economic case report, underscoring the urgent need for a strategic overhaul of our maritime policies. Our analysis relied heavily on data-driven insights sourced from reputable organizations such as the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA) Cabotage Vessel Register, and various other maritime databases. By leveraging this wealth of information, we have been able to craft a well-informed strategy that addresses the unique challenges faced by our maritime sector while capitalizing on the immense opportunities that lie ahead.

What specific incentives or regulatory reforms will attract private investors into the maritime value chain under this programme? The NMS-BEAP25 framework presents a comprehensive strategy designed to create a conducive environment for private investment in Nigeria's maritime sector. Central to this framework is the proposal of a clear exemption regime tailored for qualified maritime assets, particularly focusing on Nigerian-flagged and locally operated vessels. This initiative aims to bolster local participation and ownership, which is crucial for the development of a robust maritime industry.

One of the most significant aspects of this proposal is the emphasis on tax harmonisation across various governmental bodies, including Customs, the Nigerian Maritime Administration and Safety Agency (NIMASA), and the Ministry of Finance. By streamlining the tax processes and ensuring consistency in regulations, the framework seeks to eliminate bureaucratic hurdles that often deter potential investors. I believe the most critical reform area that requires immediate attention is our current interpretation of Customs import duty. At present, vessels that carry goods consignments exceeding 500 or 1,000 gross registered tonnes (GRT) are subjected to import duty assessments that incorrectly categorize these vessels as consumer goods rather than recognizing them as vital capital infrastructure. This misinterpretation is not only illogical but also economically counterproductive, creating an environment that is less favorable for investment.

Such practices are virtually nonexistent in other parts of the world, including the United States, Europe, or Asia, where vessels financed through asset-backed debt structures are viewed as national productive assets rather than taxable imports. This distinction is crucial as it underscores the need for Nigeria to adopt a more progressive approach to maritime taxation, aligning with global best practices. By incentivizing investment through the correction of this foundational issue, Nigeria can create a more attractive landscape for private investors.

In addition to addressing import duty assessments, we advocate for several other key reforms that would further incentivize investment in the maritime sector. These include the introduction of accelerated capital allowances, which would allow investors to recover their capital expenditures more quickly and stimulate further investment. Additionally, implementing duty waivers on critical spare parts and dry-docking equipment would significantly reduce operational costs for local operators, making the maritime business more viable and competitive.

Moreover, providing VAT exemptions on ship acquisition and charter transactions would lower the financial barriers to entry for new players in the market, encouraging more local companies to participate in maritime activities. Nigeria's maritime market has long been dominated by foreign players, a situation that reflects deep-rooted dependencies that have stifled local capacity and growth. Although the government has pledged to revitalize this sector through the disbursement of the Cabotage Vessel Financing Fund (CVFF) this year, tangible progress has been limited, highlighting the urgent need for effective implementation of these reforms.

In an insightful interview, James Jolapamo, a maritime consultant and founder of Ship2Ship Solutions, discusses the underlying ideas behind NMS-BEAP25 and outlines his vision for reclaiming Nigeria's lost maritime capital. He emphasizes the necessity of building a sustainable ship-management ecosystem, which could be effectively supported by leveraging the Cabotage fund. By fostering a more favorable investment climate through these proposed reforms, Nigeria can not only enhance its maritime capabilities but also stimulate economic growth and create numerous job opportunities within the sector.

This is all quite ambitious. How do you plan to finance it?

We’re modelling an EIB-style mortgage financing system, where vessels are treated as long-term, low-interest assets—essentially “real estate on water.” This innovative approach allows us to leverage the inherent value of maritime assets in a way that is similar to how real estate is financed, thus creating a more stable and sustainable funding mechanism for the maritime industry. Our framework focuses on three fundamental pillars that are crucial for the success of this financing model. One.

Long Tenor Facilities (12–15+ years) are essential to ensure that the financing provided allows for ample time for vessels to generate revenue and stabilize their operations before significant repayments commence. This extended timeline is critical in the maritime sector, where initial investment and operational costs can be substantial and lengthy to recover. Two. We aim to establish Reasonable Interest Rates (less than 10%). Our goal is to create a blended rate environment by strategically combining Development Finance Institution (DFI)-backed capital with local sub-custodian banks, which will help mitigate risks and provide competitive rates to borrowers. This collaborative approach ensures that we can offer financing solutions that are both accessible and affordable for operators in the maritime space. Three.

Grace Period and Cash-Sweep Features: Each financing facility will include a 12–24 month moratorium, allowing vessel operators to focus on stabilizing their operations without the immediate burden of debt repayments. Additionally, performance-linked cash-sweep provisions will enable surplus cash generated by the vessels to be utilized for debt repayment once they are operationally stable. This flexibility is designed to alleviate financial pressure during the critical early years of operation, fostering a more conducive environment for growth and sustainability.

President Bola Ahmed Tinubu has laid the groundwork with his Renewed Hope reforms, which aim to revitalize various sectors of the economy, including maritime. However, to truly capitalize on this momentum, we need a sense of urgency to consolidate the progress made thus far. Current initiatives by NNPC/Caverton, the Nigerian Content Development and Monitoring Board (NCDMB) “Nigeria First” initiative, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)’s licensing reforms all signal a readiness to move forward and implement necessary changes in the maritime sector.

We have had several maritime plans in the past that fell short of full implementation. What safeguards are built into NMS-BEAP25 to avoid the same fate? I believe the chief of all hurdles has always been political will, and closely following that is the technical mismatch that often arises in policy execution. To address these challenges, we are proposing an Executive Implementation Directive at the kick-off phase of the project. This directive will focus on capturing the low-hanging fruits within the first six months of implementation, ensuring that we achieve quick wins that build momentum for the project.

This will codify key levers such as the Cabotage Vessel Financing Fund (CVFF) leverage mechanism, which will not merely be tied to a custodian fund but will instead be directly connected to real GDP-impacting projects. Within this framework, we will formalize the Cabotage Joint Task Force (CJT), which will be led by an indigenous interest group in partnership with the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Navy. Additionally, we will establish Charter Party obligations that involve national operators like NNPC and second-tier energy firms, ensuring that they anchor their operations firmly on the Nigeria-First Policy.

Second, our strategy emphasizes transparency and accountability. A Flag Watch List will be maintained and continuously updated under a RACI (Responsible, Accountable, Consulted, Informed) matrix, which will be directly tied to verifiable Key Performance Indicators (KPIs). These KPIs will include metrics such as the number of vessels inducted, Nigerian time-charter hours logged, seafarer deployment hours, and certifications achieved by local operators. By establishing these clear metrics, we aim to foster an environment of transparency and trust among all stakeholders.

The Cabotage Fund has long been criticized for its lack of transparency. How will your proposal ensure transparency and equitable access, especially for indigenous operators? The guiding philosophy behind our approach is what I call the “adaptive continuum.” This concept embodies a living balance that honors the historical context of our maritime sector while simultaneously driving forward innovation in the true spirit of the Cabotage principle. We are “rethinking the CVFF” approach—not merely as a disbursement fund, but as a strategic leverage instrument. It must evolve into a win-win mechanism, one that restores the faith of the early contributors while empowering new players to build a more inclusive maritime economy.

In terms of societal impact, can you explain and quantify how this project will create direct or indirect jobs for Nigerians over its implementation period? For Fleet Induction, we’re targeting the acquisition of between 150 and 200 vessels across cabotage, offshore support, and logistics operations. This ambitious target translates to an estimated creation of roughly 12,000 to 18,000 direct seafaring roles at a steady state, significantly contributing to employment in the sector. Under the Shipyards & Maintenance category, the expansion of dry-docks and the recurring classing or repair cycles are projected to support an additional 20,000 to 30,000 technical and trades jobs. These roles will encompass a wide range of positions, including welders, electricians, non-destructive testing (NDT) inspectors, painters, and production planners.

The multiplier effect of this initiative extends beyond direct employment, impacting various ancillary services such as pilots, mooring crews, chandlers, bunkering, haulage, information and communication technology (ICT), and security services, which could generate an additional 35,000 to 55,000 jobs. Furthermore, with our focus on Training & Certification, we will implement our Whitelist System and the James Jolapamo Professional Offering, developed in collaboration with Elkins Marine US. This initiative will roll out specialized training pipelines supported by simulators and certification programs, creating an estimated 5,000 to 8,000 professional and instructional roles within the maritime education framework. On conservative estimates, NMS-BEAP25 has the potential to catalyze between 130,000 and 200,000 total jobs over the next decade, significantly enhancing the employment landscape and economic stability in Nigeria.

How have the responses been to this?

The response has been overwhelmingly encouraging and has sparked a wave of optimism within the community. The Minister, along with his dedicated technical team, has demonstrated an unwavering commitment to advancing the Blue Economy agenda, which is fundamentally crucial for the sustainable development and management of Nigeria's valuable maritime resources. This strong commitment is not merely theoretical; it is vividly reflected in their well-thought-out policy proposals and their proactive engagement strategies with a diverse array of stakeholders across the maritime sector. We’ve meticulously mapped out major stakeholders, which include key government agencies, influential private sector players, and various non-governmental organizations, and we are actively working to secure their buy-in as we prepare for our high-level engagement with the Presidential office. This strategic approach is designed to ensure that we cultivate a broad base of support, which is absolutely essential for the successful implementation of the Blue Economy initiatives.

Among the key industry figures who are already participating in these early frontier discussions are notable names such as Tope Sonubi, Kola Adesina, Kola Gbadamosi, and Prince Femi Akinruntan. Additionally, former Directors General of NIMASA, including Temisan Omatseye and Dakuku Peterside, along with Greg Ogbefun, have also joined these conversations. Their involvement not only lends substantial credibility to the initiative but also plays a critical role in aligning the interests of various sectors within the maritime industry. This collaborative spirit is vital, as it fosters an environment where diverse perspectives can contribute to a more comprehensive and effective Blue Economy strategy.

Given Nigeria’s historical challenges with policy discontinuity, how do you intend to secure bipartisan and institutional buy-in so this plan survives beyond the current administration? This is indeed a pressing and critical question, as the sustainability of the Blue Economy agenda is heavily dependent on political stability and continuity. Essentially, it’s about establishing a sovereign continuity clause—a mechanism that compels successive administrations to honour existing commitments that are intrinsically tied to national economic interests. This clause is strategically designed to create a robust framework within which future governments must operate, ensuring that they cannot easily abandon or disregard the progress achieved by their predecessors. Any deviation from this established path or unilateral termination of policies could trigger international scrutiny, which serves as a significant deterrent against abrupt policy shifts. I firmly believe that the precedent set by this current administration—similar to what we’ve observed in Lagos State—illustrates that Nigeria has the potential to institutionalize public-interest programmes that transcend political affiliations. This demonstrates that with the right frameworks in place, initiatives can indeed endure beyond political cycles and contribute meaningfully to long-term national development.

You’ve often mentioned the “four wheels” concept. Could you explain that analogy?

Certainly. I find it helpful to liken the maritime sector to a vehicle: for it to move effectively and efficiently, all four wheels must function together in perfect harmony. These four wheels represent critical components: ship acquisition, dry-dock and maintenance capabilities, Environmental Vessel Recycling and safety operations, and professional management along with skilled mariners. Each of these components plays an indispensable role in ensuring the smooth operation and sustainability of the maritime industry. When these elements operate in synchrony, the Blue Economy will not only thrive but do so sustainably. The integration of these essential elements is crucial for creating a robust maritime sector that can compete effectively on a global scale. With the right infrastructure, such as Suezmax-capacity dry docks, Nigeria’s crude and product operations will become significantly more efficient. This efficiency transcends mere output increases; it also encompasses a commitment to reducing environmental impact and enhancing safety protocols, which are critical for the long-term viability and success of the Blue Economy.

What’s next for NMS-BEAP25?

Within the next month, we’ll be embarking on a series of strategic initiatives aimed at enhancing our project’s impact and ensuring comprehensive stakeholder involvement. This phase of engagement is crucial, as it will allow us to gather valuable insights and feedback from a diverse range of stakeholders, including industry experts, community representatives, and government officials. We believe that their perspectives will play a vital role in shaping the direction and effectiveness of the NMS-BEAP25 project.

As part of this effort, we will conduct a series of workshops and discussions, each designed to facilitate open dialogue and encourage collaboration among all parties involved. These engagements will not only help us refine our objectives but also foster a sense of ownership and commitment among stakeholders, which is essential for the long-term success of the initiative.

Our firm, Jolapamo & Associates, is strategically positioned to lead the implementation phase of the project. This includes the development and finalization of critical documents such as the draft Memorandum of Understanding (MoU) and the conditional Term Sheet. These documents will serve as foundational agreements that outline the responsibilities, expectations, and commitments of all parties involved. They are essential for ensuring clarity and alignment as we move forward.

The draft MoU will encapsulate the collaborative framework we aim to establish, while the conditional Term Sheet will detail the financial and operational terms necessary for the project's execution. Both documents will be instrumental in guiding our interactions with the Presidential Cabotage Committee, which plays a pivotal role in overseeing and approving the necessary regulatory frameworks for our initiatives.

In addition, the NMS-BEAP Cabotage Forum officially kicks off this week, marking an important milestone in our project timeline. This forum will serve as a platform for stakeholders to come together, share knowledge, and discuss the latest developments in cabotage policies and practices. It will also provide an opportunity for us to present our vision for NMS-BEAP25 and gather further feedback that can enhance our strategic approach.

Overall, the next steps for NMS-BEAP25 are focused on building strong partnerships, ensuring transparent communication, and laying the groundwork for a successful implementation phase. We are excited about the possibilities that lie ahead and are committed to driving this initiative forward with the support of our stakeholders.