FG MOVES TO FUND NIGERIAN SHIPOWNERS

The Federal Government is set to begin disbursing the long-delayed Cabotage Vessel Financing Fund to qualified Nigerian shipowners, with successful applicants eligible to access up to $25m each.

Minister of Marine and Blue Economy, Adegboyega Oyetola, said the initiative would strengthen indigenous participation in Nigeria’s maritime sector and help local operators acquire modern vessels.

The fund, established more than two decades ago under the Coastal and Inland Shipping (Cabotage) Act, is intended to address the financing challenges faced by Nigerian shipping companies.

Oyetola said the government had directed the Nigerian Maritime Administration and Safety Agency to accelerate the disbursement process in collaboration with 12 approved banks.

NIMASA has so far received 92 applications, with 20 forwarded to the approved lending institutions and one already reviewed and sent for approval. The government has also expanded the number of participating banks from five to 12 and launched an application portal to improve transparency and accessibility.

The minister said access to affordable, long-term financing would enable Nigerian shipowners to expand their fleets and compete for coastal and offshore contracts currently dominated by foreign operators.

The initiative is also expected to stimulate activity in shipbuilding, marine engineering, vessel maintenance and maritime logistics, while creating more than 30,000 direct and indirect jobs.

The government said the programme forms part of its broader efforts to develop Nigeria’s blue economy, increase local participation and retain more value from maritime activities within the country.