By Annette Ikponmwonba | September 7, 2026
Keypoints
• The Federal Government plans to provide qualified Nigerian shipowners with up to $25m each under the Cabotage Vessel Financing Fund (CVFF).
• The government says the financing is aimed at strengthening indigenous shipping and reducing foreign dominance in Nigeria’s maritime sector.
• The initiative is expected to create more than 30,000 direct and indirect jobs.
• Marine and Blue Economy Minister Adegboyega Oyetola directed NIMASA to accelerate the disbursement process.
• NIMASA has received 92 applications for the fund.
• Of the 92 applications, 20 have been forwarded to approved Primary Lending Institutions for further processing.
• Only one application has so far been reviewed and forwarded for approval.
• The number of approved banks participating in the scheme has increased from five to 12.
• The CVFF application portal was launched in January 2026 to make access to the fund more transparent and structured.
• The fund is expected to support shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries.
Main Story
The Federal Government is set to begin disbursing the long-awaited Cabotage Vessel Financing Fund to qualified Nigerian shipowners, with successful applicants eligible to access up to $25m each, Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed the development on Monday, saying the government was moving to unlock the fund more than 20 years after it was established.
The minister said the financing would help Nigerian businesses acquire vessels and increase indigenous participation in the country’s maritime industry, According to Oyetola, increasing the number of Nigerian-owned vessels operating on Nigerian waters would help reduce foreign dominance while allowing more Nigerian businesses and workers to benefit from the maritime economy.
He has directed the Nigerian Maritime Administration and Safety Agency to work with the 12 approved Primary Lending Institutions to accelerate the processing and disbursement of funds to qualified applicants, NIMASA has so far received 92 applications. Twenty applications have been forwarded to the approved banks, while one has been reviewed and sent forward for approval, The government has also increased the number of approved banks from five to 12 and introduced the CVFF Application Portal to improve transparency and accessibility.
The Issues
The biggest issue surrounding the CVFF has been the lengthy delay in disbursing the fund. Although the financing scheme was established under the Coastal and Inland Shipping (Cabotage) Act of 2003, Nigerian shipowners have waited more than two decades for access to the fund.
Another challenge is the limited number of applications that have progressed through the approval process. While 92 applications have been received, only one has so far been reviewed and forwarded for approval, The government will therefore face pressure to ensure that the new disbursement process is efficient, transparent and accessible to genuinely qualified Nigerian operators.
What’s Being Said
Oyetola said the government wants more Nigerian-owned vessels operating in Nigerian waters and more Nigerian businesses participating in the maritime economy, The minister also said the impact of the fund would extend beyond vessel acquisition. A stronger indigenous fleet could increase activity in shipyards, marine engineering, vessel maintenance, maritime logistics and other related industries, The government estimates that the initiative could generate more than 30,000 direct and indirect jobs while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.
What’s Next
NIMASA and the 12 approved banks are expected to accelerate the assessment and approval of applications submitted through the CVFF process, Attention will also be on whether the government can move beyond the initial applications and ensure that qualified shipowners actually receive the financing, Successful implementation could increase Nigeria’s indigenous fleet, strengthen local maritime businesses and create opportunities across several parts of the blue economy.
Bottom Line
The Federal Government is finally moving towards disbursing the CVFF more than 20 years after its establishment. With eligible shipowners able to access up to $25m each, the scheme could provide much-needed financing for vessel acquisition and help expand indigenous shipping. Its success, however, will depend on how quickly and transparently applications are processed and funds are released.
