FG moves to release $25m ship financing for Nigerian operators

The Federal Government is set to begin disbursing the long-delayed Cabotage Vessel Financing Fund (CVFF), with successful Nigerian shipowners eligible to access up to $25 million each to acquire vessels and expand their operations.

Minister of Marine and Blue Economy, Adegboyega Oyetola, said the financing could help reduce foreign dominance of Nigeria’s maritime industry and generate more than 30,000 direct and indirect jobs.

Oyetola disclosed this on Monday in a post on his X handle, saying the government was taking steps to unlock the fund more than two decades after it was established.

He said affordable, long-term financing had remained one of the biggest obstacles to the growth of indigenous shipping companies.

“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund (CVFF) for Nigerian shipowners,” the minister said.

“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.”

According to Oyetola, the availability of low-interest financing would allow indigenous operators to modernise their fleets and compete for coastal and offshore contracts currently dominated by foreign companies.

“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.

The minister said he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to work with the 12 approved Primary Lending Institutions (PLIs) to speed up the disbursement process.

Oyetola said NIMASA had received 92 applications so far, with 20 forwarded to the approved banks and one already reviewed and sent for approval.

He attributed the expansion of the number of participating banks from five to 12, alongside the launch of the CVFF Application Portal, to efforts to make the process more accessible and transparent.

The minister said the expected benefits of the fund would extend beyond ship acquisition, with increased indigenous ownership capable of stimulating shipbuilding, marine engineering, vessel maintenance and maritime logistics.

He projected that the initiative could generate more than 30,000 direct and indirect jobs while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.

Oyetola said the programme was part of the President Bola Tinubu administration’s broader effort to develop the Blue Economy and increase Nigerian participation in maritime activities.

He also highlighted government investment in training and developing personnel for the sector.

According to him, 222 seafarers have received free professional training, while 333 cadets have completed academic training and obtained degrees. Another 135 cadets under the Nigerian Seafarers Development Programme have obtained Certificates of Competency.

He added that 7,059 Nigerian seafarers had been placed onboard vessels to acquire sea-time experience.

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

The CVFF was created under the Coastal and Inland Shipping (Cabotage) Act of 2003 to help Nigerian shipping companies acquire vessels and build indigenous capacity.

Despite being established more than 20 years ago, the fund had remained largely undistributed until the Federal Government launched its application portal in January 2026.

NIMASA began receiving applications following the launch and reported in April that more than 60 operators had applied within four months. The latest figure of 92 applications was disclosed by Oyetola on Monday.

The minister, however, said only one application had so far completed the review stage and been forwarded for approval.