After 20 Years, FG Moves To Unlock Shipowners’ $25m Fund

The federal government has commenced moves to unlock the long-delayed Cabotage Vessel Financing Fund (CVFF), with qualified Nigerian shipowners expected to access up to $25 million in financing.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday, saying the initiative was aimed at strengthening indigenous participation in Nigeria’s maritime industry and reducing the dominance of foreign operators.

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.

However, disbursement of the fund had remained stalled for more than two decades.

Oyetola said the federal government was now determined to unlock the fund and provide Nigerian shipowners with access to affordable, long-term financing to enable them acquire modern vessels, expand their fleets and compete for coastal and offshore contracts.

According to him, access to affordable, long-term financing had remained one of the major obstacles limiting the growth of Nigerian-owned shipping companies.

He directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to accelerate the disbursement process in collaboration with 12 approved Primary Lending Institutions.

The minister disclosed that NIMASA had so far received 92 applications from prospective beneficiaries, with 20 applications already forwarded to the approved lending institutions.

He added that one application had been reviewed and forwarded for approval.

Oyetola said the number of participating banks had been increased from five to 12, while an online application portal had also been launched to make the process more transparent and accessible.

He said the fund would not only support vessel acquisition but also stimulate activities in shipbuilding, marine engineering, vessel maintenance and maritime logistics.

The minister projected that the initiative could generate more than 30,000 direct and indirect jobs while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.

Oyetola also highlighted ongoing efforts by the Federal Government to develop the manpower required to support the growth of Nigeria’s maritime industry.

He said 222 seafarers had received free professional training, while 333 cadets had completed academic training and obtained degrees.

According to him, 135 cadets under the Nigerian Seafarers Development Programme had also secured Certificates of Competency.

The minister further disclosed that 7,059 Nigerian seafarers had been placed onboard vessels to acquire practical sea-time experience.

The latest move to disburse the CVFF represents a major step in the federal government’s efforts to increase Nigerian ownership of vessels and retain a greater share of the economic value generated from activities in the country’s maritime waters.

The government expects the financing scheme to strengthen indigenous shipping companies, improve Nigeria’s maritime capacity and reduce reliance on foreign operators in the coastal and offshore shipping market.