Fidelia Soriwei, Abuja
The Federal Government is set to begin disbursing up to $25 million each to qualified Nigerian shipowners under the long-delayed Cabotage Vessel Financing Fund, CVFF, to expand indigenous shipping and reduce foreign dominance of Nigeria’s maritime sector.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday, saying the government was taking steps to unlock the fund more than 20 years after it was established.
Oyetola said affordable, long-term financing remained one of the major challenges facing Nigerian-owned shipping companies, adding that successful applicants would receive funding to acquire vessels.
“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.
He said the financing would enable indigenous operators to acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign companies.
“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.”
Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency, NIMASA, to accelerate the disbursement process in collaboration with 12 approved Primary Lending Institutions.
“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 minister projected that the initiative could generate more than 30,000 direct and indirect jobs through increased activity in shipyards, marine engineering, vessel maintenance and maritime logistics.
Oyetola also highlighted efforts to develop skilled Nigerian manpower, saying 222 seafarers had received free professional training, 333 cadets had completed academic training and obtained degrees, while 135 Nigerian Seafarers Development Programme cadets had secured Certificates of Competency.
He added that 7,059 Nigerian seafarers had been placed onboard vessels to gain sea-time experience, stressing that vessel financing and human capital development were necessary to strengthen Nigeria’s maritime industry.
The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to help Nigerian shipping companies acquire vessels and build indigenous capacity. However, its disbursement has remained stalled for more than two decades.
The Federal Government launched the CVFF application portal in January 2026, while NIMASA began receiving applications from interested operators. NIMASA received more than 60 applications by April, with the latest figure from Oyetola showing that applications have now risen to 92 and one has been reviewed and forwarded for approval.
