FG Directs NIMASA, Lenders to Fast-Track Disbursement of Vessel Financing Fund
The Federal Government has directed the Nigeria Maritime Administration and Safety Agency (NIMASA) and 12 primary lending institutions (PLIs) to fast-track the disbursement of the Cabotage Vessel Financing Fund (CVFF).
The CVFF was established in 2003 under Section 42 of the Coastal and Inland Shipping (Cabotage) Act to provide low-interest, long-term financing for the acquisition of vessels by Nigerian shipowners.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, announced the directive in a statement issued on Sunday by his Special Adviser, Bolaji Akinola.
Oyetola said the move was aimed at ending nearly two decades of delays in accessing the fund and unlocking investment, growth and job opportunities in Nigeria’s maritime sector.
The minister said NIMASA had received 92 applications for funding under the CVFF, with 20 applications forwarded to the primary lending institutions and one already reviewed and submitted for final approval.
He described the operationalisation of the fund as a major milestone in the Federal Government’s efforts to strengthen indigenous participation in coastal and offshore shipping.
Oyetola recalled that in April 2025, he directed NIMASA to commence the disbursement of the fund, ending years of administrative delays and paving the way for the repositioning of Nigeria’s indigenous shipping capacity.
According to him, the process gained further momentum with the launch of the CVFF application portal in Lagos on January 22, designed to provide eligible shipowners with transparent and structured access to the fund.
The minister said the number of primary lending institutions was later increased from five to 12 to widen access and reduce bottlenecks in the processing of loans.
Oyetola said the CVFF had accumulated for more than two decades without being accessed, stressing that the fund was established to provide affordable, long-term financing for vessel acquisition by Nigerian shipowners.
He explained that access to the fund would enable indigenous shipowners to compete for coastal shipping contracts, reduce Nigeria’s dependence on foreign vessels and retain more value within the Nigerian economy.
The minister projected that the initiative could create more than 30,000 direct and indirect jobs in shipyards, marine engineering firms and maritime logistics companies across the country.
He said the disbursement followed President Bola Tinubu’s authorisation to address longstanding financing challenges and unlock the economic potential of Nigeria’s blue economy.
Beyond vessel financing, Oyetola said the ministry was also investing in the development of seafarers through NIMASA by expanding training, certification and welfare initiatives for maritime professionals.
He disclosed that 222 seafarers had received free training in basic and advanced courses, while 333 cadets had completed academic training and obtained degrees.
The minister said, “Under the Nigerian Seafarers Development Programme, 135 cadets successfully completed the programme and obtained Certificates of Competency.”
Oyetola added that 7,059 Nigerian seafarers had been placed onboard vessels to acquire the required sea-time experience for career progression.
He said the various interventions reflected the Federal Government’s commitment to developing a competitive maritime workforce and ensuring that Nigerians benefit directly from opportunities in the blue economy.
In 2025, Oyetola announced the Federal Government’s plan to end the issuance of waivers under the Coastal and Inland Shipping Act 2003, a move aimed at further strengthening indigenous participation in Nigeria’s maritime industry.