The Federal Government has announced plans to provide qualified Nigerian shipowners with up to $25 million each under the Cabotage Vessel Financing Fund (CVFF), 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 in a statement posted on his X handle, saying the government was set to unlock 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, particularly the lack of affordable, long-term financing for vessel acquisition and fleet expansion.
He explained that successful applicants would be eligible to access up to $25 million each to acquire vessels, subject to the required assessment and approval processes.
According to the minister, financing the acquisition of modern vessels at low interest rates would enable indigenous operators to expand their fleets and compete for coastal and offshore contracts currently dominated by foreign companies.
He said the objective was to increase the number of Nigerian-owned vessels operating on the country’s waters, expand local participation in the maritime economy and ensure that Nigerians derive greater economic benefits from the nation’s maritime resources.
Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to work with the 12 approved Primary Lending Institutions to speed up the disbursement process for qualified applicants.
He disclosed that NIMASA had received 92 applications, with 20 already forwarded to the approved banks for consideration, while one application had been reviewed and forwarded for approval.
The minister added that the number of approved banks had been increased from five to 12 to improve access to the fund, while a CVFF Application Portal had also been launched to make the process more transparent, structured and accessible.
Oyetola said the expected impact of the fund would extend beyond vessel acquisition, noting that a stronger indigenous fleet would stimulate activity across shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries.
He projected that the initiative could generate more than 30,000 direct and indirect jobs while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.
The minister described the disbursement of the CVFF as part of the Tinubu administration’s efforts to unlock the potential of Nigeria’s Blue Economy, build indigenous capacity and increase local participation in the country’s maritime sector.
He said providing Nigerian shipowners with the financial capacity to acquire modern vessels was critical to reducing foreign dominance and retaining more value within the Nigerian maritime economy.
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