The Federal Government is set to begin disbursing the long-delayed Cabotage Vessel Financing Fund (CVFF) to qualified Nigerian shipowners, with successful applicants eligible for up to $25 million in financing.
Minister of Marine and Blue Economy, Adegboyega Oyetola, said the initiative was designed to strengthen indigenous participation in Nigeria’s maritime industry and reduce the dominance of foreign operators.
Oyetola disclosed this on Monday, saying the government was moving to unlock the fund more than two decades after it was established under the Coastal and Inland Shipping (Cabotage) Act of 2003.
According to the minister, the financing will help Nigerian shipowners acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign operators.
Oyetola identified access to affordable, long-term financing as one of the major challenges restricting the growth of Nigerian-owned shipping companies.
He 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 from prospective beneficiaries. Of these, 20 have been forwarded to approved lending institutions, while one application has been reviewed and sent for approval.
The minister said the government had increased the number of participating banks from five to 12 and launched an online application portal to improve transparency and accessibility.
Beyond vessel acquisition, Oyetola said the fund was expected to stimulate growth in shipbuilding, marine engineering, vessel maintenance and maritime logistics.
He projected that the initiative could create more than 30,000 direct and indirect jobs, while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.
The minister also highlighted government efforts to develop skilled manpower for the maritime sector.
He said 222 seafarers had received free professional training, while 333 cadets had completed academic training and obtained degrees. Another 135 cadets under the Nigerian Seafarers Development Programme had secured Certificates of Competency.
Oyetola added that 7,059 Nigerian seafarers had been placed onboard vessels to gain practical sea-time experience.
The CVFF was established to support Nigerian shipping companies in acquiring vessels and building indigenous capacity. However, disbursement of the fund remained stalled for more than 20 years before the Federal Government began efforts to revive the scheme in 2026.
The latest development represents a major step in the government’s drive to increase Nigerian vessel ownership and retain a larger share of the economic value generated from maritime activities.
Chronicle NG reports that the Federal Government’s latest move seeks to unlock a fund created in 2003 and channel it towards expanding indigenous capacity in the maritime sector.
