The Federal Government has officially operationalized the Cabotage Vessel Financing Fund (CVFF) with the launch of a digital application portal, ending a 23-year wait for indigenous shipowners to access the facility.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, described the move as a strategic step to reposition Nigeria’s maritime sector as a central pillar of national development.
Providing clarity on the financial framework during the launch, the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, disclosed that the fund comes with a fixed interest rate of 6.5 per cent and a repayment tenure of eight years.
Qualified applicants can access up to $25 million each to acquire modern vessels, a measure designed to bridge the long-standing financing gap that has historically forced Nigerian operators to rely on costly foreign-flagged vessels.
The newly launched portal serves as a transparent institutional gateway for administering the fund, aligning with the government’s e-governance agenda to reduce bureaucratic bottlenecks.
Speaking, Oyetola emphasized that the initiative is strictly a strategic development instrument meant to improve value retention within the domestic economy and create jobs for Nigerian seafarers.
He warned potential beneficiaries that the CVFF is a revolving fund requiring prudent utilization and strict repayment to ensure sustainability for future generations.
The launch has received strong backing from industry stakeholders and the National Assembly, who termed it a turning point for investor confidence.
The fund will be administered in collaboration with vetted Primary Lending Institutions (PLIs), which are required to provide a minimum contribution of 15 per cent to the scheme, ensuring a professional and accountable disbursement process.