…As qualified applicants set to access up to $25m
By Seun Ibiyemi
The Federal Government has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the long-overdue disbursement of the $350 million Cabotage Vessel Financing Fund (CVFF).
The order, issued by the Minister of Marine and Blue Economy, Adegboyega Isiaka Oyetola, marks a major shift after more than two decades of administrative inaction.
Created under the Coastal and Inland Shipping (Cabotage) Act of 2003, the CVFF was established to support Nigerian shipowners in acquiring vessels, with the goal of boosting local participation in the maritime industry. Despite its strategic purpose, the fund has remained inactive until now.
According to the Minister’s Media and Communications Adviser, Dr Bolaji Akinola, this new directive signals a turning point in Nigeria’s maritime strategy, ushering in a renewed focus on building indigenous shipping capacity.
Under the maritime reform agenda of President Bola Ahmed Tinubu’s administration, the CVFF is expected to serve as a catalyst for national economic advancement, industry competitiveness, and long-term sustainability.
“This isn’t merely a financial release; it’s a reinvention of our maritime sector’s narrative,” Oyetola said.
“For over 20 years, the CVFF remained a dormant pledge. Today, we are implementing it with intent, transparency, and strategy.”
In response to the minister’s directive, NIMASA has published a Marine Notice inviting eligible Nigerian shipping companies to apply for the fund. Successful applicants will be able to access up to $25 million each through designated Primary Lending Institutions (PLIs), at competitive interest rates.
The funding is specifically intended for the purchase of vessels that meet recognised international standards in terms of safety and performance.
Oyetola remarked that the initiative represents more than just financial assistance.
“We are laying the groundwork for Nigerian shipping companies to compete confidently on the global stage,” he said.
“This is a pivotal moment, one that reinforces our dedication to local content, economic stability, and maritime self-reliance.”
The expected impact of the CVFF disbursement could be substantial. Industry experts foresee the development of a stronger fleet of locally owned vessels, expanded employment opportunities, revitalisation of domestic shipbuilding and maintenance sectors, and a notable reduction in foreign currency expenditure through overseas vessel charters.
Described by stakeholders as a “watershed moment,” the announcement has been widely praised as a bold move by the Federal Government to end years of bureaucratic gridlock and empower indigenous maritime operators. With the disbursement process now initiated, there is cautious optimism that Nigeria’s maritime landscape is on the cusp of a transformative new phase marked by growth, innovation, and global relevance.
Minister Oyetola concluded, “A strong local fleet is not merely a symbol of national pride; it is a strategic asset. Through this intervention, we are securing employment, reinforcing our economy, and positioning Nigeria more firmly within the global shipping industry.”
This milestone decision by the Tinubu administration and the Ministry of Marine and Blue Economy sends a clear message that Nigeria is ready to become a leading player in global maritime trade—built on indigenous strength, informed policy, and firm political commitment.