President Bola Ahmed Tinubu has approved the disbursement of the Cabotage Vessel Financing Fund (CVFF), more than two decades after its establishment, without Nigerian shipowners accessing it.
The Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, disclosed this in a statement issued on Sunday, directing the Nigeria Maritime Administration and Safety Agency (NIMASA) and 12 Primary Lending Institutions to fast-track the disbursement process.
According to Oyetola, “The directive is expected to accelerate access to the fund and provide financing for Nigerian shipowners seeking to expand their participation in the maritime sector.”
The minister explained that the move was expected to unlock investment, expand indigenous participation in coastal and offshore shipping and create jobs across Nigeria’s maritime sector.
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Oyetola disclosed that NIMASA had received 92 applications for funding under the CVFF, with 20 applications already submitted to Primary Lending Institutions and one reviewed and forwarded for final approval.
He described the move to operationalise the fund as a major milestone in the Nigerian Government’s efforts to strengthen indigenous shipping capacity and enable Nigerian shipowners to compete more effectively in the coastal and offshore shipping market.
The minister recalled that he directed NIMASA in April 2025 to commence disbursement of the fund, ending years of administrative stagnation surrounding the facility.
He explained that the process gained further momentum with the launch of the Cabotage Vessel Financing Fund Application Portal in Lagos on January 22, providing eligible shipowners with a more transparent and structured channel to access the financing.
The CVFF had accumulated for more than two decades without being accessed and was designed to provide low-interest, long-term financing for the acquisition of vessels by eligible Nigerian operators.
Oyetola stressed that the fund would help Nigerian shipowners acquire vessels, compete for coastal shipping contracts and reduce dependence on foreign-owned vessels.
The minister projected that the initiative could generate more than 30,000 direct and indirect jobs in shipyards, marine engineering firms and maritime logistics companies.
“The number of Primary Lending Institutions participating in the financing process was increased from 5 to 12, the expansion was intended to widen access to the fund and reduce bottlenecks associated with loan processing,” he stated.
The latest authorisation represents the most recent step in the long-running effort to disburse the Cabotage Vessel Financing Fund to indigenous shipowners.
