Nigeria has formally opened applications for the Cabotage Vessel Financing Fund (CVFF), a scheme created 23 years ago, to unlock structured financing for indigenous shipowners but never fully operationalised.
Adegboyega Oyetola, the minister of Marine and Blue Economy, on Thursday launched the CVFF application portal in Lagos, activating the first concrete mechanism through which Nigerian shipping companies can apply for funding under the Cabotage Act.
The portal, which will be managed by the Nigerian Maritime Administration and Safety Agency (NIMASA), allows eligible Nigerian shipowners to submit applications digitally.
Applications will be evaluated through approved Primary Lending Institutions, which will handle due diligence, credit assessment and loan administration.
The CVFF was established under the Coastal and Inland Shipping Act of 2003 to provide long-term financing for Nigerian-owned vessels operating in domestic waters.
Despite steady contributions to the fund over the years, now worth over $700 million, it remained inaccessible, leaving local operators reliant on foreign financing or foreign-flagged vessels.
Read also:Â âWe propose using the Cabotage fund to build a sustainable ship-management ecosystemâ
Officials say the portal is designed to address longstanding concerns about transparency and governance that stalled previous disbursement efforts. The process will be fully digital, with defined eligibility criteria and monitoring mechanisms built into the system.
According to Oyetola, the fund is structured as a revolving facility, meaning beneficiaries are expected to repay loans to sustain future lending. The aim is to reduce foreign dominance in the countryâs shipping industry.
âWe 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 a shipbuilding, ship repair and maritime services,â he said.
Dayo Mobereola, director-general of NIMASA, said the agency has created a dedicated CVFF unit to manage applications, liaise with lenders and oversee compliance. He said the focus would be on risk management, professional oversight and strict adherence to eligibility rules.
Lawmakers from the Senate and House committees on marine transport and maritime safety said they would back the implementation through legislative oversight, while industry representatives said access to predictable, long-term financing remains critical for vessel acquisition, fleet renewal and competitiveness, particularly as Nigerian operators face higher borrowing costs than their foreign counterparts.
In 2025, Oyetola instructed NIMASA to begin preparations for CVFF disbursement, assuring the industry of disbursement in August. However, execution stalled as shipowners remained locked out till the end of the year.
Under the framework, eligible firms may access financing of up to $25 million each to acquire vessels that meet international safety and performance standards, with lending handled through vetted financial institutions.
Bashir Jamoh, the former DG, had in 2024 stated that NIMASA could not start disbursing the money in the Cabotage Fund without first engaging with banks and shipowners.
NIMASA appointed 12 Primary Lending Institutions (PLIs) to administer the funds, seven more than the five that former President Buhari approved in 2023, including Polaris, Zenith, Union and Jaiz banks, plus the UBA.
Mobereola said the banks will lend 35 percent while NIMASA will lend the other 50 percent, while the beneficiary of the fund will provide the remaining 15 percent equity shares.
