BY GODWIN OBI
The Federal Government has unveiled a $25 million per ship financing window for eligible Nigerian shipowners under the Cabotage Vessel Financing Fund (CVFF), in a major push to strengthen indigenous shipping capacity and retain maritime value within the national economy.
The development was announced on Thursday in a statement issued by the Ministry of Marine and Blue Economy.
According to the statement, the Minister of Marine and Blue Economy, Adegboyega Oyetola, described the initiative as “a deliberate and strategic step in repositioning Nigeria’s maritime sector as a central pillar of national development.”
Under the scheme, qualified applicants can access up to $25 million each at competitive interest rates to acquire modern vessels that meet 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 ministry stated.
The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to provide structured financing for Nigerian shipowners but remained largely inaccessible for more than two decades due to institutional and structural challenges.
With the unveiling of the CVFF Application Portal, stakeholders say Nigeria has taken a long-awaited step toward building a robust indigenous fleet, reducing dependence on foreign-flagged vessels and strengthening its position in the global marine and blue economy.
Oyetola said the initiative aligns with the Federal Government’s broader agenda to diversify the economy and fully harness Nigeria’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,” the minister said.
“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.”
He explained that the CVFF is structured as a strategic development instrument aimed at reducing reliance on foreign vessels, improving local value retention, creating jobs for Nigerian seafarers and stimulating growth in allied sectors such as shipbuilding, ship repair and maritime services.
According to the minister, a stronger indigenous fleet will also enhance maritime safety and security, while supporting the regulation and efficiency of Nigeria’s maritime domain.
Oyetola stressed that the CVFF is a revolving fund and must be responsibly utilised and repaid to ensure its long-term sustainability.
Explaining the role of the newly launched portal, he said it would serve as the institutional gateway for 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 digital platform aligns with the Federal Government’s e-Government agenda, helping to reduce bureaucratic bottlenecks and improve service delivery.
“By digitising the end-to-end CVFF application and evaluation process, we are simplifying access, improving predictability and ensuring efficiency, transparency and responsiveness,” Oyetola said.
Also speaking in the statement, the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, reaffirmed the agency’s commitment to the effective implementation of the Fund.
He disclosed that NIMASA has established a dedicated Cabotage Secretariat Unit to manage the scheme, 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,” Mobereola said
ADVERTISEMENTS
