President Bola Tinubu
By John Dike, Osogbo
President Bola Tinubu has approved the disbursement of Nigeria’s long-awaited Cabotage Vessel Financing Fund (CVFF), over two decades after the scheme was established to provide financing for indigenous shipowners.
The approval is expected to unlock access to the fund and boost investment in Nigeria’s maritime industry, particularly in coastal and offshore shipping.
Marine and Blue Economy minister, Dr Adegboyega Oyetola, disclosed this in a statement issued on Sunday by his Special Adviser, Dr Bolaji Akinola.
Oyetola directed the Nigeria Maritime Administration and Safety Agency (NIMASA) and the 12 Primary Lending Institutions (PLIs) participating in the scheme to fast-track the disbursement process.
According to him, the move represents a major step towards strengthening indigenous shipping capacity, expanding Nigerian participation in the maritime sector and creating employment opportunities.
Oyetola said NIMASA had received 92 applications from shipowners seeking funding under the CVFF, while 20 applications had already been forwarded to the participating lending institutions.
He added that one application had been reviewed and forwarded for final approval.
The minister said the operationalisation of the fund would enable Nigerian shipowners to acquire vessels and compete more effectively for contracts in the coastal and offshore shipping market.
He said it would also reduce Nigeria’s dependence on foreign-owned vessels operating in its waters.
The CVFF was established more than two decades ago to provide low-interest, long-term financing to eligible Nigerian operators for the acquisition of vessels.
However, despite accumulating billions of naira over the years, Nigerian shipowners had been unable to access the fund because of prolonged administrative and regulatory delays.
Oyetola recalled that he directed NIMASA in April 2025 to commence the disbursement process in an effort to end the long-standing stagnation surrounding the fund.
The process subsequently received further impetus with the launch of the CVFF Application Portal in Lagos on January 22, providing eligible operators with what the ministry described as a more transparent and structured mechanism for submitting applications.
The minister said the government expected the fund to stimulate investment across the maritime value chain, including shipyards, marine engineering companies and maritime logistics firms.
According to him, the initiative could generate more than 30,000 direct and indirect jobs.
More lending institutions
Oyetola also disclosed that the number of Primary Lending Institutions involved in the CVFF financing process had been increased from five to 12.
He explained that the expansion was intended to widen access to the fund and reduce bottlenecks associated with loan processing.
The minister said the government was committed to creating an enabling environment for Nigerian shipowners to acquire modern vessels and participate more competitively in the country’s maritime economy.
Previous attempts to release fund
The latest approval by President Tinubu is the most recent in a series of attempts by successive administrations to move the CVFF from accumulated funds to actual financing for indigenous operators.
In December 2019, the Federal Government announced that Nigerian shipowners would begin accessing the fund in January 2020 after former President Muhammadu Buhari approved its disbursement.
At the time, the fund was reported to have accumulated to about N44.64 billion.
However, the planned disbursement did not materialise.
In May 2023, the House of Representatives ordered the suspension of the proposed rollout, citing concerns over inadequate information on the amount accumulated since the establishment of the fund and the absence of clear records on beneficiaries.
The following month, in June 2023, the House approved the disbursement of the then-estimated $360 million CVFF to qualified Nigerian shipowners after conducting an investigation into the fund.
In April 2025, NIMASA again announced plans to commence disbursement, with the fund then estimated at about $700 million.
The agency also disclosed that the number of Primary Lending Institutions had been increased from five to 12.
The latest presidential approval is therefore expected to move the process beyond policy announcements and administrative preparations to actual financing of eligible Nigerian shipowners.
Boost for indigenous shipping
Industry stakeholders have long argued that access to affordable vessel financing is critical to the development of Nigeria’s indigenous shipping industry.
The high cost of acquiring vessels has made it difficult for many Nigerian operators to compete with foreign-owned companies for contracts in the country’s coastal and offshore waters.
The successful disbursement of the CVFF could therefore provide Nigerian operators with the capital required to acquire vessels, expand their fleets and participate more actively in the maritime economy.
It could also support the development of related industries, including shipbuilding, repairs, marine engineering, logistics and other ancillary maritime services.
The development comes amid other efforts by the Federal Government to improve Nigeria’s standing in international maritime operations and strengthen compliance with global shipping standards.
In August 2026, the United States lifted a 12-year Condition of Entry imposed on Nigerian vessels arriving at US ports.
The restriction, introduced by the US Coast Guard in June 2014, followed concerns over Nigeria’s compliance with international maritime security standards at some of its port facilities.
The lifting of the restriction is expected to reduce additional security-related requirements and costs for vessels operating between Nigeria and the United States, while improving vessel turnaround and schedule reliability.
With the CVFF now set for disbursement, the Federal Government is seeking to combine improved international maritime compliance with greater access to finance for indigenous operators
The expectation is that the long-awaited fund will finally translate into new vessels, expanded local shipping capacity and thousands of jobs in Nigeria’s maritime sector.
