FG to Give Shipowners Up to $25m Each After Two-Decade CVFF Delay

The Federal Government is set to provide qualified Nigerian shipowners with up to $25 million each under the Cabotage Vessel Financing Fund (CVFF), more than two decades after the scheme was established to strengthen indigenous participation in the maritime industry.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday, saying the long-awaited disbursement of the fund to qualified Nigerian shipowners would soon commence.

Oyetola said the initiative was designed to address one of the major challenges facing Nigerian-owned shipping companies access to affordable, long-term financing for vessel acquisition.

“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund (CVFF) for Nigerian shipowners,” the minister said in a post on his X handle.

He said each successful applicant would be able to access up to $25 million to acquire vessels, subject to the applicable assessment and approval process.

According to Oyetola, access to low-cost financing would enable Nigerian shipowners to acquire modern vessels, expand their fleets and compete for coastal and offshore 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,” he said.

The Nigerian Maritime Administration and Safety Agency (NIMASA) has so far received 92 applications under the financing scheme, according to the minister.

Of the applications received, 20 have been forwarded to the approved Primary Lending Institutions (PLIs), while only one has so far been reviewed and forwarded for approval.

Oyetola said the government had expanded the number of approved banks participating in the programme from five to 12 to accelerate access to the fund.

The government has also launched the CVFF Application Portal to make the application and disbursement process more transparent, structured and accessible.

“I have, therefore, directed 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,” Oyetola said.

The latest application figure represents an increase from the more than 60 applications NIMASA reported in April, four months after the portal opened.

The Federal Government expects the release of the CVFF to have an impact beyond vessel acquisition, with increased indigenous ownership potentially stimulating several segments of the maritime economy.

Oyetola said the fund could contribute to the development of Nigeria’s shipyards, marine engineering, vessel maintenance and maritime logistics industries.

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 government’s broader objective was to increase the number of Nigerian-owned vessels operating on local waters and ensure that a larger share of the value generated from the country’s maritime economy remains within Nigeria.

“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,” he said.

CVFF Delayed For More Than 20 Years

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.

However, the fund remained undistributed for more than two decades, despite repeated calls from industry stakeholders for its release.

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.

The latest move marks a renewed attempt by the government to deploy the fund and increase Nigerian ownership of vessels operating in the country’s maritime space.

Oyetola said vessel financing was only one component of the government’s strategy to build indigenous capacity in the maritime sector.

He said 222 seafarers had received free professional training, while 333 cadets had completed academic training and obtained degrees.

In addition, 135 cadets under the Nigerian Seafarers Development Programme (NSDP) had obtained Certificates of Competency.

The minister also disclosed that 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.