FG OPENS $25M VESSEL FINANCING WINDOW FOR NIGERIAN SHIPOWNERS

The Federal Government has moved to strengthen indigenous participation in Nigeria’s maritime industry by making up to $25 million available to qualified local shipowners under the Cabotage Vessel Financing Fund. The initiative is designed to help Nigerian operators acquire modern vessels, expand their fleets and compete more effectively for coastal and offshore contracts that are currently dominated by foreign-owned vessels. Marine and Blue Economy Minister, Adegboyega Oyetola, said the move represents a major step towards unlocking a fund that had remained largely inaccessible to Nigerian operators for more than two decades.

The CVFF was established under the Coastal and Inland Shipping Act of 2003 to provide financial support for Nigerian shipping companies and encourage indigenous ownership of vessels. Under the current arrangement, successful applicants can access financing of up to $25 million for vessel acquisition, subject to the required assessment and approval process. The Federal Government has said the financing is intended to address one of the major challenges facing local shipowners  limited access to affordable, long-term capital for fleet expansion and modernisation.

Oyetola said improving access to vessel financing would allow Nigerian companies to acquire more modern ships and take advantage of opportunities within the country's coastal and offshore maritime trade. The government also expects the scheme to create more jobs for Nigerians and ensure that a greater share of the economic value generated from activities in the country's waters remains within the domestic economy. According to the minister, increasing the number of Nigerian-owned vessels operating on local waters is important to reducing foreign dominance in the sector and strengthening the country's blue economy.

The financing programme is being administered through the Nigerian Maritime Administration and Safety Agency, which has established a dedicated Cabotage Secretariat to coordinate applications and work with participating financial institutions. Earlier arrangements for the facility indicated that applicants would be required to provide equity contributions, while the loans would be subject to specific commercial and repayment conditions. Industry stakeholders have also stressed that beneficiaries should link vessel acquisition to identifiable cargo and viable trade contracts to ensure that the ships generate enough revenue to service the financing.

The Federal Government believes that successful implementation of the CVFF will help reposition Nigeria as a stronger player in regional and international maritime commerce. Beyond supporting individual shipowners, the initiative is expected to encourage fleet development, expand opportunities for Nigerian businesses and strengthen local capacity in vessel operations and related maritime services. Authorities are therefore expected to maintain oversight of the application and approval process to ensure that the fund achieves its intended purpose of increasing indigenous ownership and participation in Nigeria's maritime sector.