20 years after, FG orders NIMASA, 12 lenders to fast-track CVFF

By Ezurike Ugochukwu

Twenty years after the Cabotage Vessel Financing Fund (CVFF) was established, the federal government has ordered the Nigerian Maritime Administration and Safety Agency (NIMASA) and 12 approved lending institutions to fast-track the disbursement of the long-awaited fund to qualified Nigerian shipowners.

The directive by the Minister of Marine and Blue Economy, Adegboyega Oyetola, signals a renewed push to finally unlock the financing scheme and use it to strengthen indigenous shipping capacity, support fleet expansion, create jobs and enable Nigerian operators to compete more effectively in the maritime industry.

Oyetola, in a statement issued by his Special Adviser, Dr Bolaji Akinola, on Sunday, said significant progress had been recorded in processing applications under the CVFF framework.

He disclosed that NIMASA had received 92 applications from prospective beneficiaries, of which 20 had been submitted to the PLIs, while one application had been reviewed and forwarded for approval.

The Minister directed NIMASA and the participating financial institutions to ensure that the momentum was sustained and that qualified shipowners were able to access the fund without unnecessary delays.

The latest directive underscores the Federal Government’s determination to move the CVFF from a long-standing policy commitment into an operational financing mechanism capable of strengthening Nigeria’s indigenous shipping capacity.

The CVFF was established under Nigeria’s Cabotage regime to provide financing support for the development of indigenous shipping capacity, including the acquisition of vessels by qualified Nigerian operators.

Despite the accumulation of the fund over many years, its disbursement to Nigerian shipowners has been delayed by administrative, regulatory and institutional challenges.

The renewed effort to operationalise the fund gathered momentum in April 2025 when Oyetola directed NIMASA to commence the long-awaited disbursement process.

That directive marked a significant step towards addressing one of the industry’s most persistent concerns: the inability of Nigerian shipowners to access affordable long-term financing to acquire vessels and compete effectively for contracts within the domestic maritime market.

The process received another boost with the launch of the CVFF Application Portal in Lagos on January 22, 2026.

The portal was designed to provide a more structured and transparent process for eligible shipowners seeking access to the financing facility, while reducing some of the administrative bottlenecks associated with applications.

In a further effort to broaden access and speed up the process, Oyetola announced an increase in the number of approved PLIs from five to 12.

The expansion is expected to give qualified shipowners more financing options while creating greater competition and capacity among participating lenders to process applications.

For indigenous operators, the availability of long-term financing at relatively favourable terms is critical to fleet renewal and expansion.

Industry stakeholders have consistently identified access to affordable capital as one of the major constraints limiting the ability of Nigerian shipowners to acquire modern vessels and compete with foreign operators for lucrative coastal, offshore and other maritime contracts.

The effective implementation of the CVFF could therefore represent a significant intervention in addressing that gap.

Oyetola said the Federal Government’s decision to operationalise the CVFF was aimed at strengthening indigenous participation in Nigeria’s maritime industry and ensuring that a greater proportion of the value generated from the country’s maritime activities remains within the domestic economy.

With access to financing, Nigerian shipowners would be better positioned to acquire modern vessels, expand their fleets and participate more effectively in the carriage of cargo and provision of maritime services.

This could also reduce Nigeria’s dependence on foreign-owned vessels in areas where indigenous operators have the capacity to participate.

The Minister said the initiative had the potential to generate more than 30,000 direct and indirect jobs across shipyards, marine engineering companies, maritime logistics firms and related businesses.

The expected impact extends beyond ship acquisition, as a stronger indigenous fleet would create demand for vessel maintenance, repairs, marine engineering, crewing, insurance, logistics and other services within the maritime value chain.

The renewed CVFF drive also forms part of the Federal Government’s broader strategy to use the blue economy as a platform for economic diversification, investment and employment creation.

Oyetola said President Bola Ahmed Tinubu had authorised the government to address the long-standing financing challenges confronting domestic maritime operators and unlock the sector’s economic potential.

According to the Minister, the objective is to create an environment in which Nigerians can participate more meaningfully in the maritime economy, rather than allowing the country’s maritime opportunities to be dominated by foreign interests.

The effective deployment of the CVFF, therefore, is expected to complement other government initiatives targeted at expanding indigenous capacity across shipping and related maritime activities.

Beyond vessel financing, Oyetola highlighted the Federal Government’s efforts to develop the human capital required to support an expanding maritime industry.

He disclosed that 222 Nigerian seafarers had been trained free of charge in basic and advanced professional courses, while 333 cadets had completed their academic training and obtained degrees.

Under the Nigerian Seafarers Development Programme (NSDP), he said 135 cadets had completed the programme and obtained their Certificates of Competency (CoC).

The Minister further disclosed that 7,059 Nigerian seafarers had been placed onboard vessels to acquire the sea-time experience required for professional advancement.

These interventions, he said, were part of a broader strategy to ensure that Nigeria does not merely expand its maritime assets but also develops the skilled workforce required to operate them.

For the CVFF, however, the immediate test remains implementation.  After years of waiting, the growing number of applications and the involvement of 12 PLIs have created expectations among Nigerian shipowners that the fund will finally translate into accessible financing.

The movement of 20 applications to the lending institutions and the forwarding of one application for approval indicate that the process has moved beyond the purely administrative stage.

The challenge now is to sustain the momentum, ensure that qualified applicants are processed transparently and efficiently, and ultimately ensure that approved financing translates into vessels, expanded fleets, jobs and increased indigenous participation.

Oyetola’s latest directive therefore places responsibility squarely on NIMASA and the participating financial institutions to accelerate the process and prevent the CVFF from becoming another prolonged administrative exercise.

If successfully implemented, the fund could become one of the most significant interventions in Nigeria’s effort to rebuild its indigenous shipping capacity.

It could provide the capital required to put more Nigerian-owned vessels on the water, strengthen the domestic maritime value chain, create employment and retain a greater share of maritime earnings within the Nigerian economy.