Minister of Marine and Blue Economy, Adegboyega Oyetola, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the process that will lead to the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF).
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.
LEADERSHIP investigation showed that the total amount of the CVFF is estimated at $700 million, however, in December 2022, the then president Muhammadu Buhari approved the immediate disbursement of approximately N16 billion and $350 million from the fund, which has not been effected up until now.
Special adviser on media and communications to Oyetola, Dr. Bolaji Akinola, said the new 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.
According to him, “under the visionary leadership of President Bola Tinubu and the determined stewardship of Oyetola, the federal government has signalled a deliberate course correction. 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.”
Meanwhile, NIMASA, in alignment with the directive, has already issued a Marine Notice inviting eligible Nigerian shipping companies to apply. Qualified applicants can access up to $25million 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. This is a turning point—one that affirms our commitment to local content, economic resilience, and maritime sovereignty,” the statement added.
The disbursement of the CVFF is anticipated to yield far-reaching benefits. It will enable 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.
