By Daniel Oluwatobiloba Popoola
The Federal Government is finally moving to disburse the Cabotage Vessel Financing Fund (CVFF) to Nigerian shipowners, more than two decades after the fund was established, with qualified applicants set to access up to $25 million each to acquire vessels.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this in a post on his X handle on Monday, 7 September, 2026, describing the development as a major step towards building a stronger Nigerian-owned shipping industry after years of delay.
He explained that the fund, established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to support Nigerian shipping companies in acquiring vessels and developing indigenous capacity, had remained undisbursed for more than 20 years due to a lack of access to affordable, long-term financing, which he described as one of the major challenges limiting the growth of Nigerian-owned shipping companies.
“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund for Nigerian shipowners. This is a major step towards building a stronger Nigerian-owned shipping industry, creating jobs and ensuring that more of the value generated from activities in our maritime space stays in Nigeria,” he said.
Oyetola explained that each successful applicant would access up to $25 million in financing, subject to the applicable assessment and approval process, adding that access to low-interest financing would enable shipowners to acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign operators.
“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. Providing Nigerian shipowners with the financial capacity to acquire vessels is a critical step towards reducing foreign dominance in our maritime space,” he said.
To fast-track the process, the minister disclosed that he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to work closely with the Primary Lending Institutions to accelerate disbursement to qualified applicants.
“NIMASA has so far received 92 applications. Of these, 20 have been forwarded to the Primary Lending Institutions, while one has so far been reviewed and forwarded for approval. To further speed up access, we have expanded the number of approved banks from five to 12 and launched the CVFF Application Portal to make the process more transparent, structured and accessible,” he said.
The Federal Government had launched the CVFF application portal in January 2026, with NIMASA disclosing in April that it received more than 60 applications within four months, promising at the time that the disbursement process would be transparent and strictly monitored. That figure has since risen to 92, according to the Minister.
Beyond vessel acquisition, Oyetola said the disbursement of the fund was expected to stimulate other areas of the maritime economy, including shipyards, marine engineering, vessel maintenance and maritime logistics, while creating more than 30,000 direct and indirect jobs.
“The disbursement of the CVFF could help create a stronger indigenous fleet, which will in turn stimulate activity in shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries. This initiative is part of the Tinubu Administration’s commitment to unlocking the full potential of Nigeria’s Blue Economy, strengthening indigenous capacity and ensuring that Nigerians take a greater share of the opportunities in our maritime sector,” he said.
The minister further highlighted government efforts to build human capacity within the sector, disclosing that 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 their Certificates of Competency, while 7,059 Nigerian seafarers had 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, adding, “We are determined to ensure that Nigerians own, operate and benefit from the economic activities taking place in Nigeria’s maritime space. We are building the capacity to make that happen, through vessel financing, skills development, indigenous enterprise and strategic investment in our maritime sector. The work continues.”
