FG Begins Disbursement of $25m CVFF to Nigerian Shipowners, Says Gboyega Oyetola

The Federal Government has commenced steps to unlock the Cabotage Vessel Financing Fund (CVFF) for Nigerian shipowners after more than two decades, Minister of Marine and Blue Economy, Gboyega Oyetola, has said.

Oyetola disclosed this in a statement posted on X, describing the initiative as a major step towards building a stronger Nigerian-owned shipping industry, creating jobs and ensuring that more of the value generated from Nigeria’s maritime activities remains in the country.

He said successful applicants under the CVFF would be able to access up to $25 million in financing to acquire vessels, subject to the applicable assessment and approval process.

“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund (CVFF) for Nigerian shipowners,” Oyetola said.

“This is a major step towards building a stronger Nigerian-owned shipping industry, creating jobs and ensuring that more of the value generated from activities in our maritime space stays in Nigeria.”

According to the minister, access to affordable, long-term financing has remained one of the major challenges restricting the growth of Nigerian-owned shipping companies.

“With access to financing at very low interest rates, our shipowners can acquire modern vessels, expand their fleets and compete for coastal and offshore contracts that are currently dominated by foreign operators,” he said.

Oyetola said the Federal Government’s objective was to increase the number of Nigerian-owned vessels operating on the country’s waters while expanding opportunities for Nigerian businesses and citizens to benefit from the maritime economy.

“Our objective is to ensure that more Nigerian-owned vessels operate on Nigerian waters, more Nigerian businesses participate in our maritime economy, and more Nigerians benefit from the wealth our waters generate,” he said.

He added that providing local shipowners with the financial capacity to acquire vessels would be critical to reducing foreign dominance in Nigeria’s maritime sector.

“Providing Nigerian shipowners with the financial capacity to acquire vessels is a critical step towards reducing foreign dominance in our maritime space,” Oyetola said.

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The minister said he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to work with the 12 approved banks, known as Primary Lending Institutions (PLIs), to accelerate the disbursement of the fund to qualified applicants.

Oyetola disclosed that NIMASA had so far received 92 applications, with 20 forwarded to the Primary Lending Institutions and one already reviewed and forwarded for approval.

“To further speed up access, we have expanded the number of approved banks from five to 12 and launched the CVFF Application Portal to make the process more transparent, structured and accessible,” he said.

He said the disbursement of the fund could help develop a stronger indigenous fleet while stimulating activities across shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries.

Oyetola also projected that the initiative could create more than 30,000 direct and indirect jobs while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.

He said the initiative formed part of the administration’s broader efforts to unlock the potential of Nigeria’s Blue Economy, strengthen indigenous capacity and ensure Nigerians secure a greater share of opportunities in the maritime sector.

“Financing vessels is only one part of building a stronger indigenous maritime industry. We are equally investing in the people who will power this industry,” the minister said.

Oyetola also highlighted the government’s efforts to develop the skills of Nigerian seafarers and maritime professionals.

He said 222 seafarers had so far received free professional training, while 333 cadets had completed their academic training and obtained degrees.

He added that 135 cadets under the Nigerian Seafarers Development Programme (NSDP) had obtained their Certificates of Competency.

“In addition, 7,059 Nigerian seafarers have been placed onboard vessels to gain valuable sea-time experience,” he said.

The minister said the government remained committed to ensuring that Nigerians owned, operated and benefited from economic activities taking place within the country’s maritime space.

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