The Federal Government is set to begin disbursing up to $25 million each to qualified Nigerian shipowners under the Cabotage Vessel Financing Fund (CVFF), more than two decades after the scheme was established.
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.
Oyetola said the government was finally unlocking the CVFF to address one of the major challenges facing Nigerian shipowners — access to affordable, long-term financing.
According to him, successful applicants will be able to access up to $25 million to acquire vessels, subject to the required assessment and approval process.
He said the financing would enable Nigerian operators to acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign companies.
The minister directed the Nigerian Maritime Administration and Safety Agency to accelerate the disbursement process in collaboration with 12 approved banks serving as Primary Lending Institutions.
Oyetola disclosed that NIMASA had so far received 92 applications, with 20 forwarded to the approved banks. Only one application, however, has been reviewed and forwarded for approval.
He said the number of participating banks had been increased from five to 12, while a CVFF application portal had also been launched to make the process more transparent and accessible.
Beyond vessel acquisition, Oyetola said the fund was expected to stimulate activities in shipyards, marine engineering, vessel maintenance and maritime logistics, thereby strengthening Nigeria’s wider maritime economy.
He added that the government was also investing in manpower development, noting that 222 seafarers had received free professional training, while 333 cadets had completed academic training and obtained degrees.
Another 135 cadets under the Nigerian Seafarers Development Programme had obtained Certificates of Competency, while 7,059 Nigerian seafarers had been placed onboard vessels to gain sea-time experience.
The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to help Nigerian shipping companies acquire vessels and build indigenous capacity. However, its disbursement has remained stalled for more than 20 years.
The Federal Government launched the CVFF application portal in January 2026, with successful applicants expected to access up to $25 million in financing.