Amid $700m CVFF Disbursement, Indigenous Shipping Sector Booms With New Entrant

Currently, indigenous shipping in Nigeria is on the verge of being revitalised as the federal government is planning to disburse the $700 Cabotage Vessel Financing Fund (CVFF) for Shipowners in the maritime sector.

The disbursement of the CVFF, according to stakeholders, would help enable the growth of a stronger, self-sufficient shipping fleet, generate employment opportunities, stimulate local shipbuilding, repair industries, and significantly reduce capital flight associated with foreign vessel chartering.

However, as the government was planning to reinvent indigenous shipping in Nigeria, the Nigerian National Petroleum Company Limited (NPCL) has unveiled a partnership with Swedish global shipping titan Stena Bulk and logistics giant, Caverton, to launch Unity Shipping Worldwide (USW).

The partnership is part of the long-term strategy employed by the federal government to revitalise the indigenous shipping industry in the country and place the sector on the path of growth to contribute to the development of the country.

For instance, the partnership, which was formalised in April 2025, will reinvigorate Nigeria’s shipping prowess on a global stage by aligning with the government’s vision of a thriving, profitable shipping and oil sectors.

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It could be recalled that in 2018, NNPC made a critical decision to consolidate its shipping capabilities under NNPC Shipping Limited (NSL). The aim was to streamline operations and build a fleet comparable to global shipping leaders, and to achieve that, in 2025, the vision took shape with the approval and subsequent signing of a joint venture with Stena Bulk and Caverton.

The announcement comes at a time when the global oil shipping demand is at an all-time high, with shipping playing a crucial role in the sustained global demand for energy. West Africa, with Nigeria as a significant contributor, exports approximately 3.8 million barrels of oil per day, underscoring the region’s vital role in energy logistics. The partnership is heralded as a crucial advancement for the Nigerian maritime sector, which has faced challenges in securing a substantial foothold on the international stage.

However, previous attempts to establish a national fleet, such as the now-defunct Nigerian National Shipping Line (NNSL), have met with financial insolvency and operational hurdles. Currently, Nigeria, the eighth-largest oil exporter globally, has lacked a national fleet—a gap that UNITY Shipping Worldwide is designed to fill.

This blend of Nigerian entrepreneurship and global maritime expertise is represented by Caverton. With experience catering to major players like Nigeria LNG, Shell, Chevron, and Total, Caverton is well-placed to steer this joint venture toward success.

Joining forces with Stena Bulk, known for its global shipping innovations and profitable joint ventures like the Stena Sonangol Suezmax Pool, the partnership harnesses a powerful maritime heritage.

At the formalisation meeting of Unity Shipping Worldwide held at the NNPC Tower, Abuja NNPC were Senior Management Team led by the Group CEO Bayo Ojulari.

During his brief remarks, he stated that “NNPC is geared for major transformation, and the ambitions set out are very clear. Shipping is a critical part of this transformation, and he looks forward to the journey as it will be a historic and unprecedented journey for the industry and the NNPC with support from all levels of government.” The new joint venture, according to shipping experts, will enable NNPC to deepen and expand its presence globally.

Praised for reigniting the country’s shipping identity, the partnership aligns with the government’s vision for local content participation. Nigeria’s Petroleum Minister, Heineken Lokpobiri, celebrated the venture as a bold move to revolutionise the energy sector and fortify Nigeria’s economic standing globally.

During a presentation visit of the Unity partners in Abuja, the minister said, “Unity Shipping Worldwide is evidence of President Bola Tinubu’s vision and was made possible by his leadership and vision in industrial reforms. It reflects the kind of impact-driven collaboration that we believe will transform the energy sector and strengthen Nigeria’s economic position,”.

He added, “For us to maximise expected profitability and deliver long-term value to the nation, every sector of the industry must be actively firm and aligned with one another.

Unity represents a practical example of the government’s local content aspirations becoming reality. I am pleased to see a Nigerian company (Caverton) at the heart of this strategic partnership. It is not only a reflection of our commitment to inclusive development but also ensures national participation.”

“Whatever we need to do as a government and as shareholders will be done to ensure that NNPC has the best deal in the overall interest of Nigerians. We will support this partnership with every power that we have. So, congratulations to all the parties as we look forward to seeing how this will be implemented for the benefit of all of us,” he stated.

Equally endorsed by the Minister of Marine and Blue Economy, Adegboyega Oyetola, while welcoming the UNITY Shipping partners at the Ministry of Marine and Blue Economy, the Honourable Minister stated that the initiative mirrors the administration’s aspirations for indigenous shipping participation and international collaboration in maritime operations.

According to him, the collaboration is laudable, particularly the detailed presentation of the business model of operations. “I am excited today,” he said. Having lost the moribund Nigerian National Shipping Line, NNSL, a committee was set up by the Ministry to see the possibility of bringing back a national flag carrier shipping line that is based on Private Public Partnership (PPP). I don’t believe government should get involved in running some of the activities as I believe it is better to allow a private sector leader such as Caverton to help drive a venture like this.” Oyetola reiterated government support in encouraging indigenous efforts “this is a perfect and laudable achievement in line with President’s agenda’.

The Chief Executive Officer, Caverton, Olabode Makanjuola, said the venture represents the culmination of years of planning. Emphasising a formidable blend of local knowledge and global best practices, Unity Shipping Worldwide is set to benefit not only Nigeria but also the wider sub-Saharan African region.

“This joint venture – the result of close to a decade of planning – marks a significant stride in enhancing Nigeria’s maritime capabilities. By combining local knowledge with international best practices, we are establishing a world-class operation that will benefit not only Nigeria but the entire Sub-Saharan Africa region.”

He affirmed the company’s readiness to deliver on the objectives of Unity Shipping Worldwide. Makanjuola said, “It has indeed been a labour of love. I am indeed humbled and grateful that a lot of this is culminating under the present administration, and we assure you of our commitment to develop shipping capacity in line with best practices for Nigeria.”

This partnership is a meeting of equals—each bringing strength, experience, and a shared ambition to redefine Nigeria’s role in global shipping,” said Erik Hånell, President & CEO of Stena Bulk. “Our partnership reflects a joint commitment to long-term value creation, operational excellence, and sustainable growth. We are proud to stand alongside NNPC and Caverton as true partners in building a world-class shipping venture that will serve Nigeria and the global energy market for years to come.”

Also present at the formalisation event was the managing director of NNPC Shipping, Panos Gliatis, said. “This strategic partnership marks a significant milestone in NNPC’s commitment to modernising Nigeria’s maritime infrastructure. By combining our expertise with Stena Bulk and Caverton Marine, we’re creating a robust platform that will enhance our domestic refining, import and export capabilities and strengthen Nigeria’s position in global energy logistics.”