The Federal Government is set to begin disbursing the long-awaited Cabotage Vessel Financing Fund (CVFF), with qualified Nigerian shipowners eligible to receive up to $25 million each to acquire vessels and expand their operations.
Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday in a post on his X handle, saying the move would help strengthen indigenous shipping and create more than 30,000 direct and indirect jobs.
According to Oyetola, the government is taking steps to unlock the fund more than two decades after its establishment under the Coastal and Inland Shipping (Cabotage) Act of 2003.
He said the initiative was designed to tackle the shortage of affordable, long-term financing that has constrained the growth of Nigerian-owned shipping companies.
“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.
Oyetola said access to low-interest financing would enable indigenous operators to modernise their fleets and compete more effectively for coastal and offshore contracts currently controlled largely by foreign companies.
“On how the fund would improve the competitiveness of indigenous operators, the minister said, “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.”
The minister said he had instructed the Nigerian Maritime Administration and Safety Agency (NIMASA) to fast-track the process and work with the 12 approved Primary Lending Institutions (PLIs).
“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.
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“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.”
Oyetola said the expected benefits of the CVFF would extend beyond vessel ownership, noting that an expanded indigenous fleet could drive growth across several segments of the 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 pointed to government programmes aimed at developing skilled manpower for the sector, stressing that vessel financing alone would not be enough to build a sustainable indigenous maritime industry.
“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.”
He added:
“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.
The CVFF was established in 2003 under the Cabotage Act to assist Nigerian shipping companies with vessel acquisition and promote indigenous participation in the maritime industry. However, the fund remained undistributed for more than 20 years.
The Federal Government launched the CVFF application portal in January 2026, announcing that successful applicants could access financing of up to $25 million. NIMASA subsequently opened the application process to eligible operators.
In April, NIMASA said it had received more than 60 applications within four months of the portal’s launch and pledged to ensure transparency in the disbursement process.
The latest update from Oyetola puts the number of applications received at 92, with 20 already forwarded to the approved lending institutions and only one reviewed and sent on for approval.