The Federal Government is set to begin disbursing the long-delayed Cabotage Vessel Financing Fund (CVFF), with qualified Nigerian shipowners eligible to access up to $25 million each to acquire vessels and expand their operations.
Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday, saying the initiative could strengthen indigenous shipping capacity and create more than 30,000 direct and indirect jobs.
Oyetola said the government was finally moving to unlock the fund more than 20 years after it was established under the Coastal and Inland Shipping (Cabotage) Act of 2003.
“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,” the minister said.
Under the scheme, successful applicants will be able to access up to $25 million in financing, subject to the applicable assessment and approval process.
Oyetola said affordable, long-term financing had been one of the major constraints limiting the growth of Nigerian-owned shipping companies.
“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,” he said.
He added that the government wanted more Nigerian-owned vessels operating on Nigerian waters and greater participation by domestic businesses in the maritime economy.
92 Applications Received
Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to accelerate the disbursement process for qualified applicants.
NIMASA has received 92 applications so far, with 20 forwarded to approved Primary Lending Institutions (PLIs) and one reviewed and forwarded for approval, according to the minister.
The government has also increased the number of approved banks participating in the scheme from five to 12 and launched the CVFF Application Portal to make the process more transparent and accessible.
Fund Could Create 30,000 Jobs
The minister said the impact of the CVFF would extend beyond vessel acquisition, with increased indigenous ownership expected to stimulate activity across several areas of the maritime economy.
“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,” Oyetola said.
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 said the programme formed part of the Tinubu administration’s efforts to develop Nigeria’s Blue Economy and increase indigenous participation in the maritime sector.
Government Expands Seafarer Training
Oyetola also highlighted government efforts to develop the workforce needed to support an expanding maritime industry.
He said 222 seafarers had received free professional training, while 333 cadets had completed their academic training and obtained degrees.
Another 135 cadets under the Nigerian Seafarers Development Programme (NSDP) had obtained Certificates of Competency, while 7,059 Nigerian seafarers had been placed onboard vessels to gain sea-time experience.
“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,” Oyetola said.
The minister added that the government remained committed to ensuring that Nigerians own, operate and benefit from economic activities within the country’s maritime space.
CVFF Delayed for More Than Two Decades
The CVFF was established in 2003 to support Nigerian shipping companies in acquiring vessels and developing indigenous maritime capacity, but its disbursement has remained 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 $25 million in financing.
NIMASA subsequently began receiving applications from interested operators and disclosed in April that it had received more than 60 applications within four months of opening the portal.
The latest figure of 92 applications represents an increase in submissions, although only one application has so far been reviewed and forwarded for approval, according to Oyetola.
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