The Federal Government will provide qualified Nigerian shipowners with up to $25 million each under the Cabotage Vessel Financing Fund (CVFF), the Minister of Marine and Blue Economy, Adegboyega Oyetola, has announced.

Oyetola said the long-awaited disbursement of the fund would soon commence, more than 20 years after its establishment to strengthen indigenous shipping capacity.

The minister disclosed this in a post on his X handle on Monday, describing the move as a major step towards building a stronger Nigerian-owned shipping industry and retaining more value from the country’s maritime sector within Nigeria.

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

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

According to him, access to affordable, long-term financing has been one of the major challenges limiting the growth of Nigerian-owned shipping companies.

Oyetola said the financing would enable indigenous operators to acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign operators.

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

He disclosed that NIMASA had so far received 92 applications, of which 20 had been forwarded to the approved banks, while one had been reviewed and forwarded for approval.

He added that the number of approved banks had been increased from five to 12, while a CVFF application portal had been launched to make the process more transparent and accessible.

Oyetola said the expected impact of the fund extended beyond vessel acquisition, noting that increased indigenous ownership could stimulate shipbuilding, marine engineering, vessel maintenance and maritime logistics.

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

The minister also highlighted ongoing efforts to develop the manpower required to support the maritime sector, stating that 222 seafarers had received free professional training, 333 cadets had completed academic training and obtained degrees, while 135 cadets under the Nigerian Seafarers Development Programme had obtained Certificates of Competency.

He added that 7,059 Nigerian seafarers had been placed onboard vessels to gain sea-time experience.

The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to support Nigerian shipping companies in acquiring vessels and developing indigenous capacity. Its disbursement has remained delayed for more than two decades.

The Federal Government launched the CVFF application portal in January 2026 and announced that successful applicants could access up to $25 million in financing. NIMASA subsequently began receiving applications from interested operators.