FG Opens $25m Vessel Fund For Nigerian Shipowners

The Federal Government has opened access to the Cabotage Vessel Financing Fund (CVFF), with successful Nigerian shipowners eligible to receive up to $25 million each for vessel acquisition.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this while outlining efforts to unlock the fund after more than two decades.

Oyetola said the financing would help indigenous operators acquire modern vessels, expand their fleets and compete for contracts within Nigeria’s maritime industry.

He identified access to affordable and long-term financing as one of the major challenges facing Nigerian-owned shipping companies.

“Under the CVFF, each successful applicant will be able to access up to $25 million in financing to acquire vessels,” he said.

The minister explained that applicants would access the funds at very low interest rates, subject to the required assessment and approval process.

According to him, the initiative would strengthen Nigeria’s indigenous shipping capacity and reduce the dominance of foreign operators.

Oyetola also directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to work with 12 approved Primary Lending Institutions to speed up disbursement to qualified applicants.

He disclosed that NIMASA had received 92 applications, with 20 already forwarded to approved banks for further processing.

One application, he added, had been reviewed and forwarded for approval.

The minister said the government had increased the number of approved lending institutions from five to 12.

It also launched the CVFF Application Portal to make the application and disbursement process more transparent and accessible.

Oyetola said unlocking the fund would generate activities across several areas of the maritime economy.

These include shipbuilding, vessel repairs, marine engineering, maintenance and maritime logistics.

He said the programme could create more than 30,000 direct and indirect jobs while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.

The minister said the government wanted more Nigerian-owned vessels to operate on the country’s waters.

He added that the policy would ensure that a larger share of the wealth generated from maritime activities remains in Nigeria.

Beyond vessel financing, Oyetola said the government was also investing in the development of skilled Nigerian seafarers.

He disclosed that 222 seafarers had received free professional training, while 333 cadets had completed academic training and obtained degrees.

Another 135 cadets under the Nigerian Seafarers Development Programme had obtained Certificates of Competency.

Oyetola further said 7,059 Nigerian seafarers had secured placements onboard vessels to gain the required sea-time experience.

He said the measures reflected the government’s broader plan to develop indigenous capacity across the maritime sector.

“We are building the capacity to make that happen through vessel financing, skills development, indigenous enterprise and strategic investment in our maritime sector,” he said.

The minister reaffirmed the government’s commitment to ensuring that Nigerians own, operate and benefit from economic activities within the country’s maritime industry.