The Federal Government will provide qualified Nigerian shipowners with up to $25 million each under the Cabotage Vessel Financing Fund (CVFF), Minister of Marine and Blue Economy Adegboyega Oyetola has said.
Oyetola said the long-awaited disbursement of the fund would soon commence, more than two decades after the CVFF was established to strengthen indigenous shipping and develop Nigeria’s maritime capacity.
The minister disclosed this in a post on his X handle on Monday, saying the initiative would help address one of the major challenges confronting Nigerian shipowners: access to affordable, long-term financing.
“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund (CVFF) 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,” Oyetola said.
He added that each successful applicant could access up to $25 million to acquire vessels, subject to the applicable assessment and approval process.
“Access to affordable, long-term financing has been one of the major challenges limiting the growth of Nigerian-owned shipping companies,” he said.
According to Oyetola, the financing would enable indigenous operators to acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign operators.
“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.
“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.”
Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to accelerate the disbursement process in collaboration with the 12 approved banks, known as Primary Lending Institutions (PLIs).
NIMASA has so far received 92 applications, of which 20 have been forwarded to the PLIs, while one has been reviewed and forwarded for approval, according to the minister.
He said the government had 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.
Beyond vessel acquisition, Oyetola said the fund could stimulate wider activity across Nigeria’s maritime economy, including shipbuilding, marine engineering, vessel maintenance and maritime logistics.
He projected that the initiative could create more than 30,000 direct and indirect jobs while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.
“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,” he said.
Oyetola said the initiative was part of President Bola Tinubu’s administration’s efforts to unlock the potential of Nigeria’s Blue Economy, strengthen indigenous capacity and increase local participation in the maritime sector.
The minister also highlighted government efforts to develop the manpower needed to support the industry.
He said 222 seafarers had received free professional training, while 333 cadets had completed their academic training and obtained degrees. Another 135 cadets under the Nigerian Seafarers Development Programme (NSDP) had obtained Certificates of Competency.
In addition, 7,059 Nigerian seafarers had been placed onboard vessels to gain sea-time experience, he said.
“We are determined to ensure that Nigerians own, operate and benefit from the economic activities taking place in Nigeria’s maritime space,” Oyetola said. “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.”
The CVFF 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, its disbursement has been delayed 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.
NIMASA disclosed in April that it had received more than 60 applications within four months of opening the portal and said the disbursement process would be transparent and strictly monitored.
The latest figure from Oyetola brings the number of applications to 92, although only one application has so far been reviewed and forwarded for approval, according to the minister.
