The federal government has officially launched the long-awaited disbursement process of the Cabotage Vessel Financing Fund (CVFF), offering eligible Nigerian shipping companies access to structured loans of up to $25 million each for vessel acquisition.
The initiative, aimed at revitalising indigenous participation in Nigeria’s maritime sector, was announced following a directive by the minister of marine and blue economy, Mr. Adegboyega Oyetola, to the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence disbursement.
According to a statement issued in Abuja by the minister’s media and communications adviser, Dr. Bolaji Akinola, the move marks a significant milestone in the implementation of the Cabotage Act of 2003, which established the CVFF as a dedicated fund to promote indigenous shipping through long-term financing.
“Mr. Adegboyega Oyetola, Minister of Marine and Blue Economy, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the process for the disbursement of the Cabotage Vessel Financing Fund (CVFF).
“Oyetola said that the directive marked a significant shift from over two decades of administrative stagnation and ushered in a new era of strategic repositioning of Nigeria’s indigenous shipping,” it stated.
In compliance with the directive, NIMASA has issued a Marine Notice inviting qualified Nigerian shipping firms to apply for the facility. Each approved firm will be eligible to access up to $25 million in funding through selected Primary Lending Institutions (PLIs), with interest rates expected to be competitive.
The minister said the activation of the CVFF disbursement process demonstrates the federal government’s commitment to empowering local operators in the maritime space and building national shipping capacity.
“This is not just about disbursement; it’s about repositioning Nigerian shipping to take its rightful place in both regional and global markets,” Oyetola was quoted as saying.
He further noted that the CVFF represents a critical tool in the federal government’s broader strategy to develop the marine and blue economy and reduce reliance on foreign vessels in Nigeria’s coastal trade.
The CVFF, financed through a two-percent deduction from the revenues earned by shipowners involved in cabotage trade, has accumulated billions of naira over the past 20 years. However, previous administrations failed to commence disbursement, drawing criticism from industry stakeholders.
With the application process now opened, industry players are expected to step forward to access the long-awaited financing, which could be a game changer for vessel ownership and capacity development among Nigerian firms.
NIMASA is expected to provide further details on eligibility criteria, documentation requirements, and timelines for loan processing in the coming days.
