By Seun Ibiyemi
The Federal Government, through the Minister of Marine and Blue Economy, Adegboyega Oyetola, has formally opened applications for the Cabotage Vessel Financing Fund (CVFF).
Created 23 years ago to provide structured financing for indigenous shipowners, the scheme is finally being operationalized after decades of delays.
During the launch, the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, disclosed that the interest rate for CVFF applications will be capped at 6.5 percent with a repayment tenure of eight years.
Declaring the digital portal open, Oyetola described the initiative as a strategic step in positioning the maritime sector as a central pillar of national development.
He noted that the launch aligns with broader objectives to diversify the economy by unlocking the potential of Nigeria’s coastal resources and inland waterways.
“The maritime sector remains the backbone of global commerce, yet despite Nigeria’s strategic location, our participation in coastal trade has remained limited. A major constraint has been the absence of a transparent financing framework. Today, we are changing that narrative,” the Minister stated.
The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003.
While acknowledging that institutional challenges delayed its implementation, Oyetola emphasized that the Ministry has now established a governance structure to ensure the fund is managed strictly according to sound financial principles.
He reminded potential beneficiaries that the CVFF is a revolving fund that must be repaid to ensure its sustainability for future maritime entrepreneurs.
The new digital portal serves as the gateway for the fund’s administration, aiming to reduce bureaucratic bottlenecks and improve the ease of doing business.
Through this platform, eligible shipowners can submit applications for evaluation against defined criteria, supported by due diligence from approved Primary Lending Institutions (PLIs).
Dr. Mobereola reaffirmed NIMASA’s commitment to the mandate, noting the establishment of a dedicated CVFF unit to coordinate with financial institutions.
He explained that while PLIs contribute a minimum of 15 percent of the funding, agreements have been reached to ensure the weighted average interest rate charged to borrowers does not exceed 6.5 percent per annum.
“The shipping industry requires long-term, patient capital. The eight-year loan tenor will provide shipowners the operational breathing space required to run efficient operations and comfortably repay their loans,” Mobereola added.
The event received goodwill messages from the Chairmen of the Senate and House Committees on Maritime Affairs, Senator Wasiu Eshinloku and Hon. Khadija Bukar Abba Ibrahim, who pledged continued legislative support.
Industry leaders from the Nigerian Chamber of Shipping and various shipowners’ associations also praised the move as a turning point for investor confidence and indigenous capacity.
Following the Minister’s 2025 directive to commence disbursements, NIMASA has issued a Marine Notice inviting applications. Qualified Nigerian shipping companies can now access up to $25 million each to acquire modern vessels that meet international safety standards.