FG begins disbursement of cabotage fund, logs 92 applications

The Federal Government has commenced the disbursement process for the long-dormant Cabotage Vessel Financing Fund (CVFF), ending a two-decade wait for indigenous maritime operators seeking capital to acquire commercial ships.

Under the revived framework, eligible Nigerian shipowners can secure up to $25 million each in low-interest, long-term financing to acquire modern vessels.

The intervention aims to dismantle foreign dominance in domestic coastal shipping, retain maritime revenue locally, and expand the nation’s commercial fleet to service coastal and offshore oil-and-gas contracts.

To facilitate execution, the Minister of Marine and Blue Economy directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to fast-track fund disbursement in partnership with 12 approved Primary Lending Institutions (PLIs).

The banking pool, recently expanded from an initial five institutions, will review applicants sourced through a newly launched digital CVFF Application Portal designed to standardise evaluations and curb bureaucratic delays.

NIMASA revealed that it has logged 92 financing applications to date, transferring 20 vetted files to the participating banks, with the first fully evaluated proposal now submitted for final executive clearance.

It projected that mobilizing the fund will generate more than 30,000 direct and indirect jobs across shipbuilding, maritime logistics, vessel maintenance, and marine engineering.

The capital injection forms a central pillar of the administration’s broader Blue Economy mandate, paired with human capacity development to ensure domestic mariners can crew the incoming fleet.

Government workforce data shows that 7,059 Nigerian seafarers have secured essential sea-time experience aboard operational vessels, alongside 222 seafarers who underwent sponsored professional courses.

Additionally, 333 cadets have finished university-level maritime programs, with another 135 trainees securing their Certificates of Competency through the Nigerian Seafarers Development Programme.

Maritime authorities maintain that synchronizing asset acquisition with certified crew development will establish an enduring indigenous shipping ecosystem capable of capturing significant market share within Nigeria’s territorial waters.