The Federal Government is set to begin disbursement of the Cabotage Vessel Financing Fund, more than 20 years after it was established, with qualified Nigerian shipowners eligible to access up to $25 million each.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday via his official X handle. He said the move is aimed at strengthening indigenous shipping capacity, reducing foreign dominance in Nigeria’s coastal trade, and creating over 30,000 direct and indirect jobs.

“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund for Nigerian shipowners. This is a major step towards building a stronger Nigerian-owned shipping industry and ensuring that more of the value generated from activities in our maritime space stays in Nigeria,” Oyetola stated.

According to the minister, each successful applicant can access up to $25 million in long-term financing at concessionary interest rates to acquire vessels, subject to assessment and approval. He noted that lack of affordable financing has been the biggest barrier to the growth of Nigerian-owned shipping companies.

“With access to financing at very low interest rates, our shipowners can acquire modern vessels, expand their fleets and compete for coastal and offshore contracts that are currently dominated by foreign operators,” he said. “Our objective is to ensure that more Nigerian-owned vessels operate on Nigerian waters, more Nigerian businesses participate in our maritime economy, and more Nigerians benefit from the wealth our waters generate.”

Oyetola said he has directed the Nigerian Maritime Administration and Safety Agency to fast-track disbursement in collaboration with 12 approved Primary Lending Institutions. The number of approved banks was recently increased from 5 to 12, and a CVFF Application Portal has been launched to make the process more transparent.

The minister revealed that NIMASA has received 92 applications so far. Of these, 20 have been forwarded to the PLIs, while one has been reviewed and sent for final approval.

He added that the impact of the fund will extend beyond vessel acquisition to shipyards, marine engineering, vessel maintenance, and maritime logistics. “The disbursement of the CVFF could help create a stronger indigenous fleet, which will in turn stimulate activity in supporting industries. It could also create more than 30,000 direct and indirect jobs, while strengthening Nigeria’s ship-owning and shipbuilding ecosystem,” he added.

Oyetola linked the initiative to the Tinubu Administration’s commitment to unlocking the potential of Nigeria’s Blue Economy. He also highlighted ongoing efforts to develop maritime manpower. According to him, 222 seafarers have received free professional training, 333 cadets have completed degree programmes, 135 cadets under the Nigerian Seafarers Development Programme have obtained Certificates of Competency, and 7,059 Nigerian seafarers have been placed on vessels for sea-time experience.

“Financing vessels is only one part of building a stronger indigenous maritime industry. We are equally investing in the people who will power this industry,” he said.

The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to help Nigerian shipping companies acquire vessels and build local capacity. Disbursement had been delayed for over two decades.

In January 2026, the Federal Government launched the CVFF application portal. NIMASA said in April that it had received over 60 applications within four months and promised a transparent process. With applications now at 92, the government says it is determined to ensure Nigerians “own, operate and benefit from the economic activities taking place in Nigeria’s maritime space.”

“We are determined to ensure that Nigerians own, operate and benefit from the economic activities taking place in Nigeria’s maritime space. We are building the capacity to make that happen — through vessel financing, skills development, indigenous enterprise and strategic investment in our maritime sector. The work continues,” the minister concluded.