FG will provide qualified Nigerian shipowners up to $25m each from the $700m CVFF, with the scheme expected to boost indigenous shipping and create 30,000 jobs.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, says the federal government will provide qualified Nigerian shipowners with up to $25 million each under the Cabotage Vessel Financing Fund (CVFF), a move he says could strengthen indigenous shipping and create more than 30,000 direct and indirect jobs.
Oyetola disclosed this in a post on his X handle on Monday, saying the government was finally moving to unlock the fund more than 20 years after it was established.
“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund (CVFF) 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,” the minister said.
How the Fund Works
The CVFF has a total pool of roughly $700 million. Under its financing structure, shipowners contribute 15 percent of a project’s cost as equity, NIMASA provides 50 percent, while Primary Lending Institutions (PLIs), the 12 approved banks handling disbursement, finance the remaining 35 percent and assume the credit risk.
“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. This is significant because access to affordable, long-term financing has been one of the major challenges limiting the growth of Nigerian-owned shipping companies,” Oyetola said.
He said the low-interest financing would let indigenous operators acquire modern vessels, expand their fleets, and compete for coastal and offshore contracts currently dominated by foreign operators. “Our objective is to ensure that more Nigerian-owned vessels operate on Nigerian waters, more Nigerian businesses participate in our maritime economy, and more Nigerians benefit from the wealth our waters generate,” he added.
Applications and Disbursement Progress
Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to work closely with the PLIs to speed up disbursement to qualified applicants. According to him, NIMASA has so far received 92 applications, of which 20 have been forwarded to the PLIs for assessment, while only one has been reviewed and forwarded for approval.
To help move the process along, the government has expanded the number of approved banks from five to 12 and launched the CVFF Application Portal, which Oyetola said was intended to make the process more transparent, structured and accessible.
The update follows earlier reporting that shipowners were still waiting for their first payout months after applying, prompting the minister’s directive to NIMASA and the PLIs to accelerate the process.
Wider Economic Impact
Beyond vessel acquisition, Oyetola said increased indigenous ownership could stimulate activity across shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries, potentially creating more than 30,000 direct and indirect jobs while strengthening the country’s ship-owning and shipbuilding ecosystem.
“This initiative is part of the Tinubu Administration’s commitment to unlocking the full potential of Nigeria’s Blue Economy, strengthening indigenous capacity and ensuring that Nigerians take a greater share of the opportunities in our maritime sector,” he said.
Investing in People, Not Just Vessels
The minister also pointed to parallel investments in maritime human capital. According to Oyetola, 222 seafarers have received free professional training, 333 cadets have completed their academic training and obtained degrees, and 135 cadets under the Nigerian Seafarers Development Programme (NSDP) have obtained their Certificates of Competency. He added that 7,059 Nigerian seafarers have been placed onboard vessels to gain sea-time experience.
“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. The work continues,” Oyetola said.
Background
The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to support Nigerian shipping companies in acquiring vessels and developing indigenous capacity, but its disbursement had been delayed for more than two decades.
The federal government launched the CVFF application portal in January 2026, after which NIMASA began receiving applications from interested operators. The agency disclosed in April that it had received more than 60 applications within the portal’s first four months, pledging a transparent and strictly monitored disbursement process.
Monday’s update from Oyetola puts that figure at 92 applications, though, as the minister noted, only one has so far completed review and been forwarded for approval.
