The Federal Government has moved to unlock the long-delayed Cabotage Vessel Financing Fund (CVFF), with qualified Nigerian shipowners set to access up to $25 million each to acquire vessels and expand their operations, Minister of Marine and Blue Economy, Adegboyega Oyetola, has disclosed.
Oyetola said the initiative, established more than two decades ago to build indigenous capacity in the maritime sector, could significantly reduce the dominance of foreign operators in Nigeria’s coastal and offshore shipping business. He said affordable long-term financing would enable Nigerian-owned companies to acquire modern vessels and compete more effectively for maritime contracts.
The minister disclosed that 92 applications had so far been received by the Nigerian Maritime Administration and Safety Agency (NIMASA), with 20 forwarded to approved Primary Lending Institutions for processing and one already reviewed and sent for approval. He said the number of participating banks had also been increased from five to 12, while a dedicated application portal had been introduced to improve transparency and access.
According to Oyetola, he had directed NIMASA to work with the 12 banks to accelerate the disbursement process to successful applicants. He said the government’s objective was not merely to increase vessel ownership but to ensure that a larger share of the economic value generated from Nigeria’s maritime waters remained within the country.
Beyond ship acquisition, the minister projected that the release of the fund could stimulate shipbuilding, marine engineering, vessel maintenance and maritime logistics, with the potential to generate more than 30,000 direct and indirect jobs. He said the development formed part of the Tinubu administration’s broader effort to expand the Blue Economy and strengthen indigenous participation in the sector.
Oyetola also said the government was investing in the human capital required to sustain the industry, noting that 222 seafarers had received professional training, 333 cadets had completed academic training, 135 had obtained Certificates of Competency under the Nigerian Seafarers Development Programme, while 7,059 Nigerian seafarers had been placed on vessels for sea-time experience.
The CVFF was created under the 2003 Cabotage Act, but its disbursement had remained stalled for over 20 years before the current push to release the funds.
