By Chibuzor Alli
The Federal Government is set to provide qualified Nigerian shipowners with up to $25m each under the Cabotage Vessel Financing Fund, more than two decades after the scheme was established.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, said the disbursement of the long-awaited fund would soon begin, with the initiative expected to strengthen indigenous shipping and create more than 30,000 direct and indirect jobs.
Oyetola disclosed this in a post on his X handle on Monday, saying the government was moving to unlock the fund after years of delay.
“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund (CVFF) for Nigerian shipowners. This is a major step towards building a stronger Nigerian-owned shipping industry, creating jobs and ensuring that more of the value generated from activities in our maritime space stays in Nigeria.
“Under the CVFF, each successful applicant will be able to access up to $25 million in financing to acquire vessels, subject to the applicable assessment and approval process. This is significant because access to affordable, long-term financing has been one of the major challenges limiting the growth of Nigerian-owned shipping companies”, the minister stated.
The minister said the financing would enable indigenous operators to acquire modern vessels, expand their fleets and compete for contracts currently dominated by foreign operators.
“With access to financing at very low interest rates, our shipowners can acquire modern vessels, expand their fleets and compete for coastal and offshore contracts that are currently dominated by foreign operators.
“Our objective is to ensure that more Nigerian-owned vessels operate on Nigerian waters, more Nigerian businesses participate in our maritime economy, and more Nigerians benefit from the wealth our waters generate. Providing Nigerian shipowners with the financial capacity to acquire vessels is a critical step towards reducing foreign dominance in our maritime space.”
92 applications received
Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency to accelerate the disbursement process in collaboration with the 12 approved banks, known as Primary Lending Institutions.
“I have, therefore, directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to work closely with the 12 approved banks, known as Primary Lending Institutions (PLIs), to accelerate the disbursement of the fund to qualified applicants.
“NIMASA has so far received 92 applications. Of these, 20 have been forwarded to the Primary Lending Institutions, while one has so far been reviewed and forwarded for approval. To further speed up access, we have expanded the number of approved banks from five to 12 and launched the CVFF Application Portal to make the process more transparent, structured and accessible.”
The latest figure represents an increase from the more than 60 applications NIMASA said it had received by April, four months after the application portal opened.
Only one of the 92 applications has so far been reviewed and forwarded for approval, according to the minister.
Fund expected to create 30,000 jobs
Oyetola said the impact of the CVFF would extend beyond vessel acquisition, with increased indigenous ownership expected to stimulate activity across the wider maritime industry.
“The disbursement of the CVFF could help create a stronger indigenous fleet, which will in turn stimulate activity in shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries. It could also create more than 30,000 direct and indirect jobs, while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.
“This initiative is part of the Tinubu Administration’s commitment to unlocking the full potential of Nigeria’s Blue Economy, strengthening indigenous capacity and ensuring that Nigerians take a greater share of the opportunities in our maritime sector.”
The minister also highlighted government programmes aimed at developing the workforce required to support the maritime sector.
“Financing vessels is only one part of building a stronger indigenous maritime industry. We are equally investing in the people who will power this industry. So far, 222 seafarers have received free professional training, 333 cadets have completed their academic training and obtained degrees, while 135 cadets under the Nigerian Seafarers Development Programme (NSDP) have obtained their Certificates of Competency. In addition, 7,059 Nigerian seafarers have been placed onboard vessels to gain valuable sea-time experience.”
Oyetola said the government was focused on increasing Nigerian ownership and participation in the maritime economy.
“We are determined to ensure that Nigerians own, operate and benefit from the economic activities taking place in Nigeria’s maritime space. We are building the capacity to make that happen — through vessel financing, skills development, indigenous enterprise and strategic investment in our maritime sector. The work continues”, the minister concluded.
CVFF established in 2003
The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to support Nigerian shipping companies in acquiring vessels and developing indigenous capacity.
Its disbursement has been delayed for more than two decades.
The Federal Government launched the CVFF application portal in January 2026 and announced that successful applicants could access up to $25m in financing. NIMASA subsequently began receiving applications from interested operators.
The government has said the scheme is intended to improve indigenous participation in Nigeria’s maritime industry and reduce the dominance of foreign operators in coastal and offshore shipping activities.
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