20 years after, minister gives nod for $360m cabotage fund disbursement
The Minister of Marine and Blue Economy, Adegboyega Isiaka Oyetola, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the process that will lead to the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF). This directive marks a significant shift from over two decades of administrative stagnation and ushers in a […]
The Minister of Marine and Blue Economy, Adegboyega Isiaka Oyetola, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the process that will lead to the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF).
This directive marks a significant shift from over two decades of administrative stagnation and ushers in a new era of strategic repositioning of Nigeria’s indigenous shipping.
The directive is contained in a statement issued on Tuesday by Dr. Bolaji Akinola,
Media & Communications Adviser to the Minister.
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The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to empower Nigerian shipping companies through access to structured financing for vessel acquisition. However, successive administrations failed to operationalise the fund—until now.
Under the leadership of President Bola Ahmed Tinubu, and the stewardship of Minister Oyetola, the federal government has signaled a deliberate course correction.
The disbursement of the CVFF will represent not just the release of funds, but a profound commitment to empowering Nigerian maritime operators, bolstering national competitiveness, and fostering sustainable economic development.
“This is not just about disbursing funds. It’s about rewriting a chapter in our maritime history,” said Oyetola.
“For over 20 years, the CVFF remained a dormant promise. Today, we are bringing it to life—deliberately, transparently, and strategically.”
NIMASA, in alignment with the minister’s directive, has already issued a Marine Notice inviting eligible Nigerian shipping companies to apply.
Qualified applicants can access up to $25 million each at competitive interest rates to acquire vessels that meet international safety and performance standards. The fund will be administered in partnership with carefully selected and approved Primary Lending Institutions (PLIs), ensuring professional and efficient disbursement.
“We are not merely funding vessels; we are investing in a future where Nigerian shipping companies can stand shoulder-to-shoulder with their international counterparts,” Oyetola added.
“This is a turning point—one that affirms our commitment to local content, economic resilience, and maritime sovereignty.”
The disbursement of the CVFF is anticipated to yield far-reaching benefits. It will enable the growth of a stronger, self-sufficient shipping fleet, generate employment opportunities, stimulate local shipbuilding and repair industries, and significantly reduce capital flight associated with foreign vessel chartering.
Industry stakeholders have hailed the move as a “watershed moment” for Nigerian maritime development. Experts believe that with proper implementation, the CVFF will help realign the industry toward long-term growth, enhanced logistics efficiency, and global relevance.
“We are doing what should have been done years ago—because our vision is clear,” said Oyetola.
“A strong indigenous fleet is not just a matter of pride; it is a strategic national asset. Through this intervention, we will be securing jobs, strengthening our economy and redefining our place in the global maritime economy.”
The federal government had in October 2022, shortlisted 11 banks to disburse the fund.
A former Director General of NIMASA, Bashir Jamoh, had in October 2022, disclosed that a committee would be inaugurated by the Minister of Transportation, for the purpose of disbursing the fund.
He said the CVFF was derived from the two per cent contribution by indigenous ship owners from every contract executed in the nation’s waters.
Shortly after that, precisely in December 2022, the government in what appeared as a bold step appointed five commercial banks for the disbursement of the fund.
The shortlisted banks are Union Bank, Zenith Bank, Polaris Bank, United Bank for Africa, UBA, and Jaiz Bank. They will serve as Primary Lending Institutions for the disbursement of the funds.
Apparently worried by the delay, in 2023, the government directed the five banks to fast-track the process of giving the fund to qualified Nigerian shipowners to buy new ships.
Over the years, stakeholders in the maritime industry have decried the continued delay in disbursing the Cabotage Vessel Financing Fund (CVFF).
Recent developments have renewed calls for urgent action, particularly from the Sea Empowerment and Research Centre (SEREC), stressing the need for immediate intervention from the federal government.