Twenty years after it was first approved, Minister of Marine and Blue Economy, Adegboyega Isiaka Oyetola, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the process that will lead to the disbursement of the $360 million Cabotage Vessel Financing Fund (CVFF).
Media & Communications Adviser to the Minister, Bolaji Akinola, said in a statement that the directive marks a significant shift from over two decades of administrative stagnation and ushers in a new era of strategic repositioning of Nigeria’s indigenous shipping.
The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to empower Nigerian shipping companies through access to structured financing for vessel acquisition. However, successive administrations failed to operationalise the fund—until now.
The minister was quoted to have said that the disbursement of the CVFF will represent not just the release of funds, but a profound commitment to empowering Nigerian maritime operators, bolstering national competitiveness, and fostering sustainable economic development.
“This is not just about disbursing funds. It’s about rewriting a chapter in our maritime history.
“For over 20 years, the CVFF remained a dormant promise. Today, we are bringing it to life—deliberately, transparently, and strategically,” said Oyetola.
NIMASA, in alignment with the minister’s directive, has already issued a Marine Notice inviting eligible Nigerian shipping companies to apply.
Qualified applicants can access up to $25 million each at competitive interest rates to acquire vessels that meet international safety and performance standards. The fund will be administered in partnership with carefully selected and approved Primary Lending Institutions (PLIs), ensuring professional and efficient disbursement.
“We are not merely funding vessels; we are investing in a future where Nigerian shipping companies can stand shoulder-to-shoulder with their international counterparts,” the minister added.
Continuing, Oyetola said, “This is a turning point—one that affirms our commitment to local content, economic resilience, and maritime sovereignty.”
The disbursement of the CVFF is anticipated to yield far-reaching benefits, including enabling the growth of a stronger, self-sufficient shipping fleet, generate employment opportunities, stimulate local shipbuilding and repair industries, and significantly reduce capital flight associated with foreign vessel chartering.
“We are doing what should have been done years ago—because our vision is clear.
“A strong indigenous fleet is not just a matter of pride; it is a strategic national asset. Through this intervention, we will be securing jobs, strengthening our economy and redefining our place in the global maritime economy,” the minister added.
The federal government had in October 2022, shortlisted 11 banks to disburse the fund.
A former Director General of NIMASA, Bashir Jamoh, had in October 2022, disclosed that a committee would be inaugurated by the Minister of Transportation, for the purpose of disbursing the fund.
He said the CVFF was derived from the two per cent contribution by indigenous ship owners from every contract executed in the nation’s waters.
In December 2022, the government in what appeared as a bold step appointed five commercial banks for the disbursement of the fund.
The shortlisted banks were Union Bank, Zenith Bank, Polaris Bank, United Bank for Africa, UBA, and Jaiz Bank, which were to serve as Primary Lending Institutions for the disbursement of the funds.
In 2023, the government directed the five banks to fast-track the process of giving the fund to qualified Nigerian shipowners to buy new ships.
The delay in disbursing the CVFF has been a cause of concern for stakeholders in the maritime industry over the years.
