The Federal Government has announced plans to provide qualified Nigerian shipowners with up to $25 million each under the Cabotage Vessel Financing Fund, in a move aimed at strengthening indigenous shipping and creating more than 30,000 direct and indirect jobs.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday, saying the government was set to begin disbursing the long-awaited fund more than two decades after it was established.
Oyetola said the initiative would address one of the major challenges facing Nigerian-owned shipping companies — limited access to affordable, long-term financing.
In a post on his X handle, the minister said successful applicants would be able to access up to $25 million to acquire vessels, subject to the applicable assessment and approval process.
“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund (CVFF) for Nigerian shipowners,” Oyetola said.
He said the move would help build a stronger Nigerian-owned shipping industry, create jobs and ensure that a greater share of the value generated from the country’s maritime sector remained within Nigeria.
According to the minister, access to low-interest financing would enable indigenous operators to acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign companies.
“Our objective is to ensure that more Nigerian-owned vessels operate on Nigerian waters, more Nigerian businesses participate in our maritime economy, and more Nigerians benefit from the wealth our waters generate,” he said.
NIMASA to Accelerate Disbursement
Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency to work with the 12 approved banks, known as Primary Lending Institutions, to accelerate the disbursement process.
He disclosed that NIMASA had so far received 92 applications from prospective beneficiaries.
Of the applications received, 20 had been forwarded to the approved lending institutions, while one had been reviewed and forwarded for approval.
The minister said the number of approved banks had been increased from five to 12 to improve access to the fund.
He also noted that the government had launched the CVFF Application Portal to make the process more transparent, structured and accessible.
Fund Expected to Create Over 30,000 Jobs
Oyetola said the impact of the CVFF would extend beyond the acquisition of vessels, arguing that a stronger indigenous fleet would stimulate activity across several segments of the maritime economy.
These include shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries.
According to him, the initiative could create more than 30,000 direct and indirect jobs while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.
He described the programme as part of the Tinubu administration’s efforts to unlock the potential of Nigeria’s Blue Economy, strengthen indigenous capacity and increase Nigerian participation in the maritime sector.
Government Highlights Seafarer Training
The minister also highlighted government efforts to develop the skilled workforce required to support the industry.
Oyetola said 222 seafarers had received free professional training, while 333 cadets had completed their academic training and obtained degrees.
He added that 135 cadets under the Nigerian Seafarers Development Programme had obtained Certificates of Competency.
According to the minister, 7,059 Nigerian seafarers had also been placed onboard vessels to gain 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,” he said.
Oyetola added that the government remained committed to ensuring that Nigerians own, operate and benefit from economic activities taking place within the country’s maritime space.
CVFF Disbursement Delayed for More Than 20 Years
The Cabotage Vessel Financing Fund was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to support Nigerian shipping companies in acquiring vessels and developing indigenous capacity.
However, the fund’s disbursement has remained stalled for more than two decades.
The Federal Government launched the CVFF application portal in January 2026 and announced 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 said the disbursement process would be transparent and closely monitored.
The latest figure released by Oyetola puts the total number of applications at 92, although only one application has so far been reviewed and forwarded for approval, according to the minister.
