The Federal Government has unveiled plans to provide successful Nigerian shipowners with access to as much as $25 million each under the long-delayed Cabotage Vessel Financing Fund (CVFF), in a move aimed at revitalising the country’s indigenous shipping industry.
Minister of Marine and Blue Economy, Adegboyega Oyetola, said the financing would give qualified Nigerian operators the capital required to purchase modern vessels, expand their fleets and compete more effectively for coastal and offshore contracts.
The minister, who outlined the administration’s efforts to unlock the CVFF after more than two decades, said access to affordable and long-term financing had remained one of the biggest obstacles confronting Nigerian-owned shipping companies.
“Under the CVFF, each successful applicant will be able to access up to $25 million in financing to acquire vessels, subject to the applicable assessment and approval process,” he said.
Oyetola said the financing would be offered at very low interest rates, describing the initiative as a major intervention to strengthen indigenous participation in the maritime sector.
According to him, greater access to vessel financing would enable Nigerian shipowners to modernise their fleets, take advantage of business opportunities in the domestic maritime industry and reduce the country’s reliance on foreign operators.
The minister said he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to collaborate with the 12 approved Primary Lending Institutions (PLIs) to speed up the processing and disbursement of the fund to qualified applicants.
He disclosed that NIMASA had so far received 92 applications, of which 20 had been forwarded to approved banks for further processing, while one application had already been reviewed and forwarded for approval.
The development represents a significant step in the government’s effort to translate the CVFF from a long-standing policy instrument into actual financing for Nigerian businesses.
The Federal Government has also expanded the number of approved lending institutions from five to 12 and introduced a CVFF Application Portal, designed to make the process of applying for and accessing the fund more transparent and accessible to prospective beneficiaries.
Oyetola said the impact of the intervention would extend beyond ship acquisition, with increased investment expected across several segments of the maritime value chain.
These, he said, include shipbuilding, ship repairs, marine engineering, vessel maintenance and maritime logistics.
The minister projected that the initiative could generate more than 30,000 direct and indirect jobs, while helping to build a stronger ecosystem for Nigerian shipowners, shipbuilders and other maritime businesses.
Beyond employment creation, the government is seeking to increase the number of Nigerian-owned vessels operating on the nation’s waters and ensure that a larger proportion of the economic value generated by maritime activities remains within the country.
Oyetola stressed that vessel financing was only one component of the administration’s broader strategy to build indigenous capacity.
He said the government was simultaneously investing in the development of Nigerian seafarers and other skilled professionals required to sustain a competitive maritime industry.
According to the minister, 222 seafarers have received free professional training, while 333 cadets have completed their academic training and obtained degrees.
He added that 135 cadets under the Nigerian Seafarers Development Programme had obtained Certificates of Competency, while 7,059 Nigerian seafarers had been placed onboard vessels to acquire the sea-time experience required for their professional development.
The government’s broader objective, Oyetola said, is to create an industry in which Nigerians have a greater stake in ownership, operation, employment and the economic opportunities generated by maritime activities.
“We are building the capacity to make that happen — through vessel financing, skills development, indigenous enterprise and strategic investment in our maritime sector,” he said.
The minister’s remarks underscore the administration’s attempt to use the CVFF not merely as a vessel acquisition fund, but as a broader mechanism for strengthening local ownership and participation across Nigeria’s maritime economy.
If effectively implemented, the financing programme could provide Nigerian operators with the capital needed to acquire competitive vessels, increase their participation in domestic and offshore shipping activities and support businesses linked to the wider maritime value chain.