NIGERIAN SHIPOWNERS GET ACCESS TO $25M VESSEL FINANCING UNDER FG’S CABOTAGE SCHEME

The Federal Government has opened access to the Cabotage Vessel Financing Fund (CVFF), allowing eligible Nigerian shipowners to obtain financing of up to $25 million each for vessel acquisition and fleet expansion. The scheme, established under the Coastal and Inland Shipping Act of 2003, had remained largely inaccessible for more than two decades despite receiving contributions from operators in Nigeria’s maritime industry. The government says the latest move is designed to strengthen indigenous ownership and increase Nigerian participation in coastal shipping.

The CVFF application portal was launched by the Minister of Marine and Blue Economy, Adegboyega Oyetola, in Lagos, providing a digital platform through which qualified operators can apply for the financing. Applications are to be processed through approved lending institutions, which will conduct credit assessments and other due-diligence procedures before funds are released. NIMASA has also established a dedicated unit to coordinate applications, work with participating banks and monitor compliance with the conditions attached to the facility.

Under the financing structure, eligible beneficiaries can access up to $25 million, with the facility intended primarily for the acquisition of vessels that meet required safety and operational standards. Reports on the framework indicate that the financing will be supported by contributions from NIMASA, participating financial institutions and the beneficiaries themselves, with an equity contribution required from applicants. The loans are structured as a revolving facility, meaning repayments will be used to support future beneficiaries and keep the fund operational.

The government said the programme is expected to reduce Nigeria’s dependence on foreign-flagged vessels, create employment opportunities for Nigerian seafarers and encourage investment in related industries such as shipbuilding, ship repairs and other maritime services. The initiative also comes as the government moves to reduce reliance on waivers that have allowed foreign vessels to participate in areas of coastal trade reserved under Nigeria’s cabotage regulations. Officials believe expanding the domestic fleet will allow Nigerian operators to compete more effectively in regional maritime markets.

NIMASA Director-General Dayo Mobereola has pledged that the implementation will be subject to stronger oversight and financial controls, amid concerns over the long history of delays surrounding the fund. More than 60 indigenous shipowners had submitted applications through the portal by early April 2026, indicating significant interest from operators seeking to expand their fleets. The government expects the financing scheme to unlock greater private-sector participation, improve Nigeria’s maritime capacity and position the sector as a stronger contributor to economic growth and job creation.