The government will offer qualified Nigerian shipowners up to $25 million each to acquire vessels, with the goal of fostering indigenous shipping and generating over 30,000 jobs, both directly and indirectly. This move marks a notable step after more than 20 years since the fund’s establishment, as Oyetola confirmed that the disbursement of the long-anticipated CVFF will soon begin.
In a post on X, he emphasized that this initiative aims to tackle one of the primary challenges faced by Nigerian shipowners. He stated, “After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund for Nigerian shipowners,” highlighting its role in building a robust Nigerian-owned shipping industry and retaining more economic value from maritime activities within Nigeria.
The CVFF will allow successful applicants access to affordable long-term financing, which has previously been a significant barrier to the growth of local shipping companies. Oyetola noted that this financial aid would empower shipowners to obtain modern vessels, expand their fleets, and compete with foreign operators dominating contracts in coastal and offshore regions.
To expedite the release of funds, the Minister has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to work closely with 12 approved banks to ensure a streamlined disbursement process. Currently, NIMASA has received 92 applications, with 20 sent to Primary Lending Institutions for assessment; however, only one has been reviewed and approved so far. Oyetola also announced the launch of the CVFF Application Portal to enhance transparency and accessibility in the application process.
Beyond vessel acquisition, Oyetola indicated that enhancing indigenous ownership would stimulate various sectors of the maritime economy, including shipbuilding, marine engineering, and maritime logistics. He emphasized the potential to create over 30,000 direct and indirect jobs and strengthen the ship-owning and shipbuilding ecosystem in Nigeria.
Furthering the initiative, the government’s commitment extends to developing human resources within the maritime sector, with ongoing training efforts to ensure that Nigerians are equipped to benefit from maritime activities. As of now, 222 seafarers have undergone free professional training, 333 cadets have completed academic programs, and numerous others have gained vital sea-time experience.
In summary, the CVFF is a critical measure within the Tinubu Administration’s broader strategy to optimize Nigeria’s Blue Economy, elevate indigenous capabilities, and ensure local participation in maritime opportunities. Established under the Coastal and Inland Shipping (Cabotage) Act of 2003, the CVFF’s long-delayed disbursement reflects a renewed effort to support Nigerian shipping companies and foster economic growth in the maritime sector.
