FG launches $25m vessel financing scheme to raise indigenous shipping
File: Minister of Marine and Blue Economy, Adegboyega Oyetola
Says Secretariat Unit to manage implementation has been established.
The Federal Government has announced that eligible Nigerian shipowners can access up to $25 million each under the Cabotage Vessel Financing Fund to acquire modern vessels.
This announcement was made on Thursday through a statement signed by the Ministry of Marine and Blue Economy.
According to the statement, the Minister of Marine and Blue Economy, Adegboyega Oyetola, described the development as “a deliberate and strategic step in repositioning Nigeria’s maritime sector as a central pillar of national development.”
The CVFF, established under the Cabotage Act of 2003, was created to provide structured financing for Nigerian shipping companies but remained largely inaccessible for more than two decades.
“Qualified applicants will have the opportunity to access up to USD 25 million each at competitive interest rates to acquire modern vessels that meet stringent international safety and performance standards.
“The Fund’s administration will be conducted in close collaboration with carefully vetted and approved Primary Lending Institutions, ensuring a professional, efficient, and accountable disbursement process,” the statement noted.
With the unveiling of the CVFF Application Portal, stakeholders believe Nigeria has taken a long-awaited step toward building a robust indigenous fleet, retaining maritime value within the national economy, and strengthening its position in the global marine and blue economy.
Oyetola said the move aligns with the Federal Government’s broader agenda to diversify the economy and fully harness the country’s maritime domain, coastal resources, and inland waterways.
“The maritime sector remains the backbone of global commerce, yet despite Nigeria’s strategic geographic location and vibrant entrepreneurial base, our participation in coastal and inland trade has remained limited.
“A major constraint has been the absence of a functional, credible, and transparent financing framework to support indigenous ship ownership. Today, we are changing that narrative,” the minister said.
Oyetola recalled that the CVFF, established under the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to close the financing gap faced by Nigerian shipowners but had suffered prolonged delays due to institutional and structural challenges.
He noted that upon assuming office, his ministry adopted a clear policy direction to strengthen maritime capacity and ensure the Fund is implemented in line with sound governance and financial principles.
“The CVFF is structured as a strategic development instrument. By facilitating access to competitive vessel financing for indigenous operators, we hope to reduce reliance on foreign-flagged vessels in our coastal trade, improve retention of value within the domestic economy, create employment opportunities for Nigerian seafarers, and stimulate growth in allied sectors such as shipbuilding, ship repair, and maritime services,” he said.
According to the minister, the impact of the Fund goes beyond economic gains, as a stronger indigenous fleet would also enhance maritime safety and security and support efforts to maintain a regulated and efficient maritime domain.
He stressed that the CVFF is a revolving fund that must be responsibly utilised and repaid to ensure long-term sustainability.
Explaining the role of the newly launched portal, Oyetola said it would serve as the institutional gateway for the transparent administration of the Fund.
“Through this platform, eligible Nigerian shipowners can submit applications that will be assessed against clearly defined criteria, supported by robust due diligence and professional financial oversight through approved Primary Lending Institutions,” he said.
He added that the portal aligns with the Federal Government’s e-Government agenda and efforts to reduce bureaucratic bottlenecks.
“By digitising the end-to-end CVFF application and evaluation process, we are simplifying access, improving predictability, and ensuring service delivery is efficient, transparent, and responsive.
“I am confident that this initiative will strengthen our shipping industry, empower Nigerian enterprise, and contribute meaningfully to national growth,” he said.
Also speaking through the statement, the Director General of the Nigerian Maritime Administration and Safety Agency, Dayo Mobereola, reaffirmed the agency’s commitment to ensuring the CVFF delivers on its mandate.
He disclosed that NIMASA has established a dedicated Cabotage Secretariat Unit to manage implementation, coordinate with financial institutions, and ensure strict compliance with eligibility and risk management procedures.
“Our objective is to make the CVFF work as a practical and reliable financing window for Nigerian shipowners to acquire vessels at competitive long-term financing rates,” he said.
