The Federal Government has begun disbursing the Cabotage Vessel Financing Fund (CVFF) to assist Nigerian shipowners purchase vessels, develop their fleets and strengthen indigenous participation within the maritime sector.
Minister of Marine and Blue Economy Adegboyega Oyetola disclosed this on Thursday in Lagos on the 2026 Annual Summit of the Shipping Correspondents Association of Nigeria (SCAN), in accordance to the News Agency of Nigeria (NAN).
The disbursement is anticipated to enhance entry to long-term financing for indigenous operators who’ve struggled to purchase vessels as a result of of excessive borrowing prices, stringent collateral necessities and the capital-intensive nature of delivery.
FG to strengthen indigenous participation in maritime
Oyetola stated the federal government was dedicated to strengthening indigenous participation within the maritime trade, retaining extra maritime worth inside the Nigerian financial system and creating sustainable employment.
- “Minister of Marine and Blue Economy, Adegboyega Oyetola, says the Federal Government has begun disbursement of the Cabotage Vessel Financing Fund (CVFF) to strengthen indigenous shipping capacity,” the NAN report learn partly.
- Represented on the summit by Anastasia Ogbonna, Director of Media on the ministry, the minister stated the federal government recognised the financing challenges dealing with native shipowners and was taking steps to make the fund accessible to certified operators.
- He stated he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to start disbursement of the CVFF, launch a clear utility portal in January 2026 and enhance the quantity of authorised Primary Lending Institutions (PLIs) from 5 to 12.
The minister described the fund as a strategic instrument for enabling Nigerian operators to purchase trendy vessels, develop their fleets and stimulate funding in ship restore, marine engineering and maritime logistics.
- He additionally urged monetary establishments to develop financing merchandise suited to the maritime trade, whereas calling on shipowners to keep sound company governance, disciplined compensation practices {and professional} fleet administration.
- Oyetola stated the federal government was additionally exploring the institution of a commercially pushed nationwide delivery line by means of a public-private partnership (PPP).
At the summit, UBA Apapa Regional Manager Nelson Edoye stated the financial institution was dedicated to supporting indigenous participation within the maritime worth chain by means of tailor-made financing and commerce facilitation options.
SCAN President Moses Ebosele, in the meantime, known as for a complete technique to handle monetary, regulatory and infrastructure constraints dealing with Nigerian shipowners.
CVFF goals to develop Nigeria’s delivery fleet
The CVFF was established below Nigeria’s coastal delivery framework to present monetary assist for indigenous shipowners looking for to purchase vessels and take part extra actively within the maritime trade.
- The authorities expects the scheme to assist native operators purchase vessels, compete for coastal delivery contracts and cut back Nigeria’s dependence on foreign-owned vessels.
- Oyetola additionally projected that the initiative might generate greater than 30,000 direct and oblique jobs throughout shipyards, marine engineering corporations and maritime logistics corporations.
Ebosele stated a stronger indigenous fleet would assist Nigeria retain maritime income, create jobs, assist native shipbuilding and strengthen the nation’s financial independence. He recognized reasonably priced financing, excessive working prices, a number of costs, coverage inconsistencies and insufficient maritime infrastructure as challenges requiring coordinated intervention.
CVFF goals to develop Nigeria’s delivery fleet
The CVFF was established below Nigeria’s coastal delivery framework to present monetary assist for indigenous shipowners looking for to purchase vessels and take part extra actively within the maritime trade.
- The authorities expects the scheme to assist native operators purchase vessels, compete for coastal delivery contracts and cut back Nigeria’s dependence on foreign-owned vessels.
- Oyetola additionally projected that the initiative might generate greater than 30,000 direct and oblique jobs throughout shipyards, marine engineering corporations and maritime logistics corporations.
Ebosele stated a stronger indigenous fleet would assist Nigeria retain maritime income, create jobs, assist native shipbuilding and strengthen the nation’s financial independence. He recognized reasonably priced financing, excessive working prices, a number of costs, coverage inconsistencies and insufficient maritime infrastructure as challenges requiring coordinated intervention.
CVFF rollout follows years of delays
President Bola Tinubu approved the disbursement of the CVFF in September, greater than 20 years after the fund was established with out being accessed by Nigerian shipowners.
- Oyetola disclosed the approval in a press release issued by his Special Adviser, Bolaji Akinola, directing NIMASA and the 12 taking part PLIs to fast-track the method.
- The minister stated NIMASA had acquired 92 purposes for financing below the scheme, with 20 purposes submitted to lending establishments and one reviewed and forwarded for closing approval.
The course of gained momentum following the launch of the CVFF utility portal in Lagos on January 22, offering eligible shipowners with a extra structured channel to apply for financing. Oyetola had earlier directed NIMASA in April 2025 to start disbursement, following years of delays.
The fund has confronted setbacks regardless of earlier efforts to launch it. In December 2019, the Federal Government introduced that native shipowners would start accessing the fund in January 2020 after then-President Muhammadu Buhari authorised its disbursement. At the time, the fund was reported to have amassed to N44.64 billion.
- However, in May 2023, the House of Representatives ordered the suspension of the deliberate rollout, citing issues over the shortage of dependable data on the fund’s amassed stability and the absence of clear data of beneficiaries. A month later, the House authorised disbursement of the then-estimated $360 million fund to certified Nigerian shipowners following an investigation.
In April 2025, NIMASA introduced plans to start disbursement, with the fund then estimated at $700 million.
