The Federal Government is set to begin disbursing the long-delayed Cabotage Vessel Financing Fund to qualified Nigerian shipowners, with successful applicants eligible for up to $25m each.
Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday, saying the initiative is aimed at strengthening indigenous shipping, reducing foreign dominance in Nigeria’s maritime sector and creating more than 30,000 direct and indirect jobs.
According to PUNCH, Oyetola said the government was moving to unlock the fund more than 20 years after it was established under the Coastal and Inland Shipping (Cabotage) Act of 2003.
“Under the CVFF, 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,” the minister said.
He explained that the financing, which would be available at very low interest rates, would enable Nigerian shipowners to acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign operators.
Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency to accelerate the disbursement process in collaboration with the 12 approved banks, known as Primary Lending Institutions.
NIMASA has so far received 92 applications, with 20 forwarded to the approved banks and one already reviewed and sent for approval.
The minister said the number of approved banks had been increased from five to 12, while a CVFF application portal had been launched to make the process more transparent and accessible.
Beyond vessel acquisition, Oyetola said the fund could stimulate activities in shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting 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 also highlighted government efforts to develop skilled manpower for the maritime sector. He said 222 seafarers had received free professional training, 333 cadets had completed academic training and obtained degrees, while 135 cadets under the Nigerian Seafarers Development Programme had obtained Certificates of Competency.
He added that 7,059 Nigerian seafarers had been placed onboard vessels to gain sea-time experience.
The CVFF was established more than two decades ago to support Nigerian shipping companies in acquiring vessels and developing indigenous maritime capacity. Its disbursement had remained delayed until the Federal Government began preparations to release the funds.
In January 2026, the government launched the CVFF application portal and announced that successful applicants could access up to $25m in financing.
