The Federal Government will provide each qualified Nigerian shipowner with up to $25 million each under the Cabotage Vessel Financing Fund, the Minister of Marine and Blue Economy, Adegboyega Oyetola, has announced.
Oyetola said the long-awaited disbursement of the CVFF would soon begin, more than two decades after the fund was established to strengthen indigenous shipping and increase Nigerian participation in the maritime industry.
The minister disclosed this in a post on his X handle on Monday, describing the planned disbursement as a major step towards building a stronger Nigerian-owned shipping industry and retaining more of the value generated from the country’s maritime activities within Nigeria.
According to him, 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.
He said access to affordable, long-term financing had remained one of the major challenges limiting the growth and competitiveness of Nigerian-owned shipping companies.
Oyetola said the financing would enable Nigerian shipowners to acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign operators.
He said the government’s objective was to increase the number of Nigerian-owned vessels operating on the country’s waters while ensuring that more local businesses and citizens benefit from economic activities in the maritime sector.
The minister described the provision of financing for vessel acquisition as a critical step towards reducing foreign dominance in Nigeria’s maritime space.
Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency, NIMASA, to accelerate the disbursement process for qualified applicants.
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He disclosed that NIMASA had so far received 92 applications, with 20 forwarded to the Primary Lending Institutions for further processing. According to the minister, only one application has so far been reviewed and forwarded for approval.
He said the number of approved banks participating in the scheme had also been increased from five to 12 to speed up access to the fund.
The 12 banks serve as Primary Lending Institutions under the scheme, while the CVFF Application Portal was launched to make the process more transparent, structured and accessible.
The minister said the impact of the CVFF would extend beyond vessel acquisition, noting that greater indigenous ownership could stimulate several areas of the maritime economy.
He said a stronger indigenous fleet would increase activity in shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries.
Oyetola estimated that the initiative could create more than 30,000 direct and indirect jobs while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.
He said the initiative formed part of the Tinubu administration’s efforts to unlock the potential of Nigeria’s Blue Economy, strengthen indigenous capacity and ensure Nigerians secure a greater share of opportunities in the maritime sector.
Oyetola also highlighted efforts by the government to develop the human resources required to support the country’s maritime industry.
He disclosed that 222 seafarers had received free professional training, while 333 cadets had completed their academic training and obtained degrees.
He added that 135 cadets under the Nigerian Seafarers Development Programme had obtained their Certificates of Competency.
In addition, 7,059 Nigerian shipowners have been placed onboard vessels to gain valuable sea-time experience, according to the minister.
Oyetola said vessel financing was only one part of developing a stronger indigenous maritime industry, stressing that skills development, enterprise and strategic investment were equally important.
The Cabotage Vessel Financing Fund 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’s disbursement has been delayed for more than 20 years, despite repeated calls for it to be made available to local operators.
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. In April, NIMASA disclosed that it had received more than 60 applications within four months of opening the portal and assured applicants that the disbursement process would be transparent and strictly monitored.
The latest figure of 92 applications represents an increase in the number of operators seeking access to the fund, although only one application has so far been reviewed and forwarded for approval.
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