After two decades, FG opens application portal to unlock vessel financing for indigenous shipowners

The Federal Government on Thursday took a decisive step toward strengthening Nigeria’s maritime industry with the official launch of the Cabotage Vessel Financing Fund (CVFF) Application Portal, ending more than two decades of delays in operationalising structured financing for indigenous shipowners.

Adegboyega Oyetola, Minister of Marine and Blue Economy, unveiled the digital portal in Lagos, describing the move as a historic milestone in repositioning the maritime sector as a key driver of national economic development.

According to a statement signed by Bolaji Akinola, by his Special Adviser on Media and Communications, Oyetola said the launch aligns with the Federal Government’s broader strategy to diversify the economy and unlock the vast potential of Nigeria’s maritime domain, coastal resources and inland waterways.

“The maritime sector remains the backbone of global commerce, yet despite Nigeria’s strategic geographic location and vibrant entrepreneurial base, our participation in coastal and inland trade has remained limited.

“A major constraint has been the absence of a functional, credible, and transparent financing framework to support indigenous ship ownership. Today, we are changing that narrative,” the Minister said.

The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to provide long-term financing for Nigerian shipping companies to acquire vessels and participate meaningfully in domestic trade.

However, institutional and structural challenges prevented the Fund from being accessed for over 20 years, leaving local operators reliant on expensive foreign financing and foreign-flagged vessels.

Oyetola said that upon assuming office, his ministry adopted a clear policy objective to strengthen Nigeria’s maritime capacity and ensure that the CVFF is implemented in line with sound governance and financial management principles.

Read also: How Nigeria can unlock N70 trillion maritime wealth, Agbakoba reveals in letter to Oyetola

“The CVFF is a strategic development instrument. By facilitating access to competitive vessel financing for indigenous operators, we aim to reduce dependence on foreign vessels, retain value within the domestic economy, create jobs for Nigerian seafarers and stimulate growth in allied sectors such as shipbuilding, ship repair and maritime services,” he explained

He added that a stronger indigenous fleet would also enhance maritime safety and security, while supporting efforts to maintain an efficient and well-regulated maritime domain.

Stressing accountability, the minister noted that the CVFF is a revolving fund that must be prudently utilised and repaid to ensure its sustainability. The newly launched portal, he explained, will serve as the institutional gateway for the transparent administration of the Fund.

Eligible Nigerian shipowners will be able to submit applications online, which will be evaluated against clearly defined criteria through robust due diligence and professional financial oversight by approved Primary Lending Institutions.

“By digitising the end-to-end CVFF application and evaluation process, we are simplifying access, reducing bureaucratic bottlenecks and improving predictability.

“This initiative aligns with the Federal Government’s e-Government agenda and will improve the ease of doing business in the maritime sector,” Oyetola said.

Also speaking at the event, Dayo Mobereola, Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), said the agency has established a dedicated Cabotage Secretariat Unit to drive implementation of the Fund.

“Our objective is to make the CVFF a practical and reliable financing window for Nigerian shipowners to acquire vessels at competitive long-term rates,” Mobereola said,

He added that NIMASA would ensure strict compliance with eligibility requirements, risk management standards and global best practices.

He said the agency would work closely with Primary Lending Institutions to ensure professional handling of applications, transparent disbursement and continuous monitoring of beneficiaries.

Goodwill messages were delivered by Wasiu Eshinloku, Chairman of the Senate Committee on Marine Transport and Khadija Bukar Abba Ibrahim, Chairman of the House Committee on Maritime Safety, Education and Administration, Both lawmakers described the launch as a landmark achievement and pledged continued legislative support to ensure effective implementation of the Fund.

In 2025, Oyetola directed NIMASA to commence the process of disbursing the CVFF, signalling a renewed commitment to actualising the Fund’s original intent. Following the directive, NIMASA issued a Marine Notice inviting eligible Nigerian shipping companies to apply.

Under the framework, qualified applicants can access up to $25 million each at competitive interest rates to acquire modern vessels that meet international safety and performance standards. The Fund will be administered in collaboration with carefully vetted Primary Lending Institutions to ensure accountability and sustainability.