For the first time since its creation in 2003, the Federal Government is set to disburse the Cabotage Vessel Financing Fund (CVFF), marking a major push toward strengthening indigenous participation in Nigeria’s maritime industry.
Minister of Marine and Blue Economy, Adegboyega Oyetola, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to kickstart the long-awaited disbursement of the fund, which has accumulated billions in contributions from Nigerian shipowners over the past two decades.
“We are doing what should have been done years ago,” Oyetola said. “This is not just about disbursing funds but a profound commitment to empowering Nigerian maritime operators, bolstering national competitiveness, and fostering sustainable economic development.”
Under the scheme, eligible Nigerian shipping firms will be able to access up to $25 million each, with competitive interest rates, for acquiring vessels that meet international standards. NIMASA has issued a Marine Notice inviting applications through approved Primary Lending Institutions (PLIs).
The CVFF was established under the 2003 Cabotage Act to provide structured credit support to local shipowners and reduce the sector’s dependence on foreign vessels. However, despite consistent contributions, past administrations failed to activate the fund.
Oyetola emphasized that this move is not just about financing vessels, but about building a self-reliant and competitive maritime sector.
“We are not merely funding vessels; we are investing in a future where Nigerian shipping companies can stand shoulder-to-shoulder with their international counterparts,” he said.
In 2022, the Nigerian Shipowners’ Association (NISA) claimed that local shipowners had contributed over $2 billion to the fund—much higher than the $350 million cited by the government. The disbursement was initially approved by former President Muhammadu Buhari, with Union Bank, Zenith Bank, Polaris Bank, UBA, and Jaiz Bank appointed as PLIs.
According to official guidelines, beneficiaries are required to make a 15% equity contribution, with NIMASA providing 35%, and the remaining 50% funded by the banks.
With the scheme now live, the Ministry projects major benefits, including reduced capital flight, increased job creation, and growth in shipbuilding, repairs, and crewing.
“Our vision is clear. A strong indigenous fleet is not just a matter of pride; it is a strategic national asset,” Oyetola said.
