The Federal Government has moved to unlock Nigeria’s long-delayed Cabotage Vessel Financing Fund (CVFF), offering qualified Nigerian shipowners access to loans of up to $25 million each to acquire vessels and expand indigenous participation in the country’s maritime industry.

The minister stressed that the funding is a loan facility, not a cash grant, and that successful applicants will have to pass assessment by the Nigerian Maritime Administration and Safety Agency (NIMASA) and participating banks before accessing the money.

“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund for Nigerian shipowners,” Oyetola said.

He described the move as a major step towards developing a stronger Nigerian-owned shipping industry, creating employment and ensuring that more of the economic value generated by maritime activities remains in the country.

The CVFF was established under Nigeria’s 2003 Cabotage Act to support the development of indigenous capacity in coastal and inland shipping.

Over the years, the fund has accumulated approximately $700 million through a levy imposed on qualifying coastal shipping activities.

Despite its creation more than two decades ago, the fund has remained largely unused for vessel acquisition, leaving Nigerian operators heavily dependent on foreign-owned and foreign-flagged vessels for significant portions of maritime transportation.

Under the proposed financing arrangement, an eligible shipowner could access up to $25 million to acquire vessels, subject to approval and the terms of the facility.

Officials have described the financing as long-term funding carrying an interest rate of about *6.5 per cent over eight years, with applicants expected to contribute equity of approximately **15 per cent*.

The government opened a digital application portal in Lagos on January 22, 2026, as part of efforts to modernise and accelerate the process.

The number of approved banks serving as Primary Lending Institutions (PLIs) has also been increased from five to 12, expanding the channels through which qualified applicants can seek financing.

So far, NIMASA has received 92 applications from prospective beneficiaries.

Of those applications, 20 have been forwarded to participating banks for further assessment, while one application has reportedly completed the review stage and been forwarded for approval.

President Bola Tinubu has authorised the disbursement of the fund, while Oyetola has directed NIMASA and the participating banks to accelerate the process.

The push comes after concerns over delays in getting the long-awaited financing to shipowners.

Applicants had been informed that the process could take approximately 90 days, but industry reports in August indicated that no beneficiary had yet received the funds.

The government is now under pressure to turn the approval and application process into actual disbursements.

However, the 30,000-job figure is a government projection, rather than a tally of jobs already created.

The government’s broader argument is that increasing the number and capacity of Nigerian-owned vessels could reduce the country’s dependence on foreign operators and allow more freight earnings to remain within Nigeria.

Foreign-flagged vessels currently play a major role in transporting cargo and providing maritime services in Nigerian waters, while local operators have frequently cited the high cost and limited availability of long-term financing as a major obstacle to fleet expansion.

Access to affordable vessel financing is therefore seen as critical to strengthening Nigeria’s indigenous shipping industry.

The CVFF is expected to help qualified operators purchase vessels that can participate in coastal shipping and other maritime activities covered by the financing framework.

For the shipowners already in the application pipeline, however, the key issue is no longer the size of the fund or the government’s promise of reform.

It is whether the $700 million facility will finally translate into actual loans reaching approved Nigerian operators.

With 92 applications already received, 20 before participating banks and one reportedly nearing approval, the next stage will test the government’s ability to move the programme from paperwork to disbursement.

If the financing is successfully deployed, the scheme could provide a significant boost to indigenous vessel ownership, maritime employment and Nigeria’s broader ambition to capture more economic value from its extensive maritime space.

But the ultimate impact will depend on how quickly qualified applicants receive the loans, whether the vessels are acquired as planned and whether the financing produces the additional shipping capacity and jobs projected by the Federal Government.

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The Federal Government has moved to unlock Nigeria’s long-delayed Cabotage Vessel Financing Fund (CVFF), offering qualified Nigerian shipowners access to loans of up to $25 million each to acquire vessels and expand indigenous participation in the country’s maritime industry.

Minister of Marine and Blue Economy, Adegboyega Oyetola, said the initiative could generate more than 30,000 direct and indirect jobs if successfully implemented, while helping Nigeria retain a larger share of the money generated from shipping activities within its waters.

The minister stressed that the funding is a loan facility, not a cash grant, and that successful applicants will have to pass assessment by the Nigerian Maritime Administration and Safety Agency (NIMASA) and participating banks before accessing the money.

“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund for Nigerian shipowners,” Oyetola said.

He described the move as a major step towards developing a stronger Nigerian-owned shipping industry, creating employment and ensuring that more of the economic value generated by maritime activities remains in the country.

The CVFF was established under Nigeria’s 2003 Cabotage Act to support the development of indigenous capacity in coastal and inland shipping.

Over the years, the fund has accumulated approximately $700 million through a levy imposed on qualifying coastal shipping activities.

Despite its creation more than two decades ago, the fund has remained largely unused for vessel acquisition, leaving Nigerian operators heavily dependent on foreign-owned and foreign-flagged vessels for significant portions of maritime transportation.

Under the proposed financing arrangement, an eligible shipowner could access up to $25 million to acquire vessels, subject to approval and the terms of the facility.

Officials have described the financing as long-term funding carrying an interest rate of about *6.5 per cent over eight years, with applicants expected to contribute equity of approximately *15 per cent.

The government opened a digital application portal in Lagos on January 22, 2026, as part of efforts to modernise and accelerate the process.

The number of approved banks serving as Primary Lending Institutions (PLIs) has also been increased from five to 12, expanding the channels through which qualified applicants can seek financing.

So far, NIMASA has received 92 applications from prospective beneficiaries.

Of those applications, 20 have been forwarded to participating banks for further assessment, while one application has reportedly completed the review stage and been forwarded for approval.

President Bola Tinubu has authorised the disbursement of the fund, while Oyetola has directed NIMASA and the participating banks to accelerate the process.

The push comes after concerns over delays in getting the long-awaited financing to shipowners.

Applicants had been informed that the process could take approximately 90 days, but industry reports in August indicated that no beneficiary had yet received the funds.

The government is now under pressure to turn the approval and application process into actual disbursements.

Oyetola said the financing could create more than 30,000 direct and indirect jobs across areas including shipbuilding, shipyards, marine engineering, vessel maintenance, maritime logistics and related services.

However, the 30,000-job figure is a government projection, rather than a tally of jobs already created.

The government’s broader argument is that increasing the number and capacity of Nigerian-owned vessels could reduce the country’s dependence on foreign operators and allow more freight earnings to remain within Nigeria.

Foreign-flagged vessels currently play a major role in transporting cargo and providing maritime services in Nigerian waters, while local operators have frequently cited the high cost and limited availability of long-term financing as a major obstacle to fleet expansion.

Access to affordable vessel financing is therefore seen as critical to strengthening Nigeria’s indigenous shipping industry.

The CVFF is expected to help qualified operators purchase vessels that can participate in coastal shipping and other maritime activities covered by the financing framework.

For the shipowners already in the application pipeline, however, the key issue is no longer the size of the fund or the government’s promise of reform.

It is whether the $700 million facility will finally translate into actual loans reaching approved Nigerian operators.

With 92 applications already received, 20 before participating banks and one reportedly nearing approval, the next stage will test the government’s ability to move the programme from paperwork to disbursement.

If the financing is successfully deployed, the scheme could provide a significant boost to indigenous vessel ownership, maritime employment and Nigeria’s broader ambition to capture more economic value from its extensive maritime space.

But the ultimate impact will depend on how quickly qualified applicants receive the loans, whether the vessels are acquired as planned and whether the financing produces the additional shipping capacity and jobs projected by the Federal Government.

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Officials have described the financing as long-term funding carrying an interest rate of about *6.5 per cent over eight years, with applicants expected to contribute equity of approximately **15 per cent*.