20 Local Ship Owners Get Approval For Cabotage Vessel Financing Fund

Twenty Nigerian shipowners have secured approval to access financing under the long-awaited Cabotage Vessel Financing Fund (CVFF), as the federal government intensifies efforts to boost indigenous participation in the nation’s maritime industry.

The development followed a directive by the minister of marine and blue economy, Dr Adegboyega Oyetola to the Nigerian Maritime Administration and Safety Agency (NIMASA) to work closely with the 12 approved Primary Lending Institutions (PLIs) to accelerate the processing and disbursement of the fund to qualified applicants.

Oyetola, in a statement issued on Sunday by his special adviser, Dr Bolaji Akinola, said 92 applications had so far been received under the CVFF framework, with 20 submitted to the PLIs and one application reviewed and forwarded for approval.

The minister said the ongoing process represented significant progress towards ending more than two decades of delays in accessing the fund and creating new opportunities for investment, fleet expansion and employment in Nigeria’s maritime sector.

The CVFF was established to provide low-interest, long-term financing to eligible Nigerian shipowners for the acquisition and maintenance of vessels, with the broader objective of strengthening indigenous shipping capacity and reducing the dominance of foreign operators in Nigeria’s coastal and offshore maritime activities.

According to Oyetola, the federal government’s renewed drive to operationalise the fund began in April 2025, when he directed NIMASA to commence the process for its disbursement.

The process was further strengthened with the launch of the CVFF Application Portal in Lagos on January 22, 2026, providing a more transparent and structured platform for eligible shipowners to apply for funding.

The minister also disclosed that the number of approved Primary Lending Institutions had been increased from five to 12 to facilitate faster processing and improve access to the financing.

Oyetola said the fund, which had accumulated for more than two decades without being accessed by Nigerian shipowners, could stimulate significant growth across the maritime value chain.

He projected that the initiative could generate more than 30,000 direct and indirect jobs in shipyards, marine engineering companies, maritime logistics firms and other related businesses.

He said the financing would enable Nigerian shipowners to acquire modern vessels, expand their fleets and compete more effectively for coastal and offshore contracts, while helping to retain greater value within the Nigerian economy.

The minister said the federal government’s decision to commence the disbursement followed President Bola Tinubu’s authorisation to address the long-standing financing challenges facing domestic maritime operators and unlock the economic potential of the blue economy.