ADEGBOYEGA Oyetola, the minister of marine and blue economy, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the disbursement of the Cabotage Vessel Financing Fund (CVFF).
Established under the 2003 Cabotage Act, the fund was designed to support Nigerian shipping companies with access to structured credit for vessel acquisition.
But despite years of contributions in billions of naira from shipowners over the years, successive administrations failed to operationalise it.
“We are doing what should have been done years ago,” Oyetola said. “This is not just about disbursing funds but a profound commitment to empowering Nigerian maritime operators, bolstering national competitiveness, and fostering sustainable economic development.”
Under the newly activated scheme, eligible Nigerian shipping companies can access up to $25 million each at competitive interest rates to acquire vessels that meet global safety and performance standards.
NIMASA has already issued a Marine Notice inviting applications through a select group of approved Primary Lending Institutions (PLIs).
For years, Nigeria’s dependence on foreign-owned vessels has drained capital from the economy and weakened enforcement of the Cabotage Act, which was enacted to give priority to indigenous operators.
“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 said.
In 2022, the Nigerian Shipowners’ Association (NISA) reported that indigenous shipowners had contributed more than $2 billion to the Cabotage fund in contrast to the $350 million announced by the government.
This was shortly after Former President Muhammadu Buhari approved of the fund’s disbursement after 17 years in the custody of NIMASA, appointing Union, Zenith, Polaris, UBA and Jaiz banks as primary lending institutions.
Official arrangements required that applicants of the fund make an equity contribution of 15 percent while NIMASA would make an equity contribution of 35 per cent, while 50 per cent would be provided by the banks.
With more locally owned ships, the ministry says Nigeria could reduce capital flight, spur job creation across the maritime value chain, and build a stronger base for shipbuilding, repairs, and crewing. “Our vision is clear. A strong indigenous fleet is not just a matter of pride; it is a strategic national asset,” Oyetola noted.
