FG to Give Nigerian Shipowners $25m Each Under New Shipping Fund
The Federal Government is set to provide qualified Nigerian shipowners with up to $25m each under the Cabotage Vessel Financing Fund, CVFF, as part of efforts to strengthen indigenous participation in the maritime sector.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday, saying the long-awaited disbursement of the fund would soon commence after more than two decades of delay.
According to the minister, the initiative is expected to improve the capacity of Nigerian-owned shipping companies to acquire modern vessels, expand their operations and compete more effectively for coastal and offshore contracts.
Oyetola said the government’s decision to unlock the fund represented a major step towards developing a stronger indigenous shipping industry, creating employment opportunities and ensuring that a greater share of the economic value generated from Nigeria’s maritime resources remained within the country.
“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund 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,” he said.
The minister explained that successful applicants would be eligible to access up to $25m in financing to acquire vessels, subject to the required assessment and approval procedures.
He identified access to affordable and long-term financing as one of the major challenges that had constrained the growth and competitiveness of Nigerian-owned shipping companies over the years.
Oyetola said the financing scheme would enable indigenous operators to acquire modern vessels, expand their fleets and compete for business opportunities that are currently dominated by foreign-owned 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,” the minister stated.
He added that the government’s objective was to increase the number of Nigerian-owned vessels operating on the country’s waters while creating more opportunities for local businesses and workers across the maritime value chain.
To facilitate the disbursement process, Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency, NIMASA, to work closely with the 12 approved banks, known as Primary Lending Institutions, to accelerate the processing of qualified applications.
The minister disclosed that NIMASA had so far received 92 applications from prospective beneficiaries. Of this number, 20 applications had been forwarded to the approved lending institutions, while one had been reviewed and forwarded for approval.
He explained that the number of approved banks had been increased from five to 12 to facilitate faster access to the fund, while a CVFF application portal had also been launched to make the process more transparent and accessible.
Beyond vessel acquisition, Oyetola said the expected disbursement would have a wider impact on Nigeria’s maritime economy by stimulating activities in shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries.
According to him, the initiative has the potential to create more than 30,000 direct and indirect jobs while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.
The minister said the CVFF was part of the Federal Government’s broader efforts to harness the potential of the Blue Economy, build indigenous capacity and increase Nigerian participation in maritime business.
He also highlighted investments in manpower development, noting that financing vessels alone would not be sufficient without adequately trained professionals to operate and manage the expanding maritime industry.
Oyetola disclosed that 222 seafarers had received free professional training, while 333 cadets had completed their academic training and obtained degrees. He added that 135 cadets under the Nigerian Seafarers Development Programme had obtained Certificates of Competency.
He further stated that 7,059 Nigerian seafarers had been placed onboard vessels to acquire practical sea-time experience, describing human capital development as an important component of the government’s maritime development strategy.
“We are determined to ensure that Nigerians own, operate and benefit from the economic activities taking place in Nigeria’s maritime space. We are building the capacity to make that happen through vessel financing, skills development, indigenous enterprise and strategic investment in our maritime sector,” Oyetola said.
The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to provide financial support to Nigerian shipping companies for vessel acquisition and the development of indigenous capacity.
However, despite being established more than two decades ago, the fund had remained largely undisbursed, prompting repeated calls from stakeholders for the Federal Government to make it accessible to qualified indigenous operators.
In January 2026, the Federal Government launched the CVFF application portal and announced that successful applicants could access up to $25m in financing.
NIMASA subsequently began receiving applications from interested operators, with the agency later disclosing that more than 60 applications had been received within four months of opening the portal.
The latest figure of 92 applications disclosed by Oyetola indicates continued interest in the financing scheme, although only one application has so far been reviewed and forwarded for approval.
The minister said the government remained committed to ensuring that the disbursement process was properly structured and transparent while supporting the development of a more competitive and sustainable indigenous maritime industry.