FG to Offer Nigerian Shipowners Up to $25m Each As CVFF Disbursement Begins

By Frontline Reporters

The Federal Government is set to provide qualified Nigerian shipowners with up to $25 million each under the long-awaited Cabotage Vessel Financing Fund (CVFF), in a move expected to transform indigenous shipping and create more than 30,000 direct and indirect jobs.

Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday, announcing that the government was finally moving to unlock the fund more than 20 years after its establishment.

Oyetola said the initiative was designed to tackle one of the biggest challenges confronting Nigerian shipowners—limited access to affordable, long-term financing for the acquisition of vessels.

“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund 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.

According to him, each successful applicant will be eligible to access up to $25 million to acquire vessels, subject to the applicable assessment and approval process.

Cheap Financing to Challenge Foreign Dominance

Oyetola said the availability of low-interest 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.

He added that the government’s objective was to increase the number of Nigerian-owned vessels operating on the country’s waters and ensure that Nigerian businesses captured a greater share of the economic opportunities generated by the maritime sector.

The minister said strengthening indigenous vessel ownership would also reduce foreign dominance and deepen local participation in Nigeria’s maritime economy.

NIMASA Receives 92 Applications

Oyetola disclosed that he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to accelerate the disbursement process in collaboration with the 12 approved Primary Lending Institutions (PLIs).

So far, NIMASA has received 92 applications, of which 20 have been forwarded to the approved banks, while only one application has been reviewed and forwarded for approval.

He said the number of participating banks had been increased from five to 12, while a dedicated CVFF Application Portal had been launched to make the process more transparent, structured and accessible.

30,000 Jobs Expected

The minister said the impact of the fund would extend beyond vessel acquisition, as a stronger indigenous fleet would stimulate activity across the wider maritime value chain.

According to him, the initiative could create more than 30,000 direct and indirect jobs while boosting shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries.

“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,” Oyetola said.

Government Boosts Seafarer Development

Oyetola also highlighted the Federal Government’s investment in developing the manpower required to sustain a competitive indigenous maritime industry.

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

In addition, 135 cadets under the Nigerian Seafarers Development Programme had obtained their Certificates of Competency, while 7,059 Nigerian seafarers had been placed onboard vessels to acquire valuable 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,” the minister said.

“We are determined to ensure that Nigerians own, operate and benefit from the economic activities taking place in Nigeria’s maritime space.”

CVFF: Two Decades of Waiting

The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to help Nigerian shipping companies acquire vessels and develop indigenous capacity. However, its disbursement has remained stalled for more than two decades.

The Federal Government launched the CVFF application portal in January 2026, announcing 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 pledged that the disbursement process would be transparent and closely monitored.

The latest figure of 92 applications represents a further increase, although only one application has so far completed the review stage and been forwarded for approval.

The long-awaited disbursement, if successfully implemented, could mark a major turning point for Nigeria’s indigenous shipping industry by providing local operators with the financial muscle to acquire vessels, expand their fleets and compete more effectively in the country’s lucrative maritime market.