More than two decades after it was established, Nigeria’s long-awaited Cabotage Vessel Financing Fund (CVFF) is moving closer to implementation, although indigenous shipowners are still waiting for the actual release of funds.
The CVFF was created under the Coastal and Inland Shipping Act of 2003 to help Nigerian-owned shipping companies access financing for vessel acquisition and fleet expansion. Despite repeated promises by successive administrations, the fund remained inaccessible for years.
In January 2026, the Federal Government launched the CVFF application portal, raising hopes that the long-delayed programme would finally become operational. The initiative was presented as a major step toward boosting indigenous participation in coastal shipping, improving transparency, and strengthening Nigeria’s maritime industry.
Under the funding arrangement, successful applicants are expected to provide 15 percent equity, while Primary Lending Institutions will finance 35 percent and the Nigerian Maritime Administration and Safety Agency (NIMASA) will contribute the remaining 50 percent from the fund.
Eligible shipowners can apply for funding of up to $25 million, subject to regulatory compliance, due diligence, and bankability assessments. The facility is expected to carry a single-digit interest rate of about 6.5 percent with a repayment period of up to eight years.
NIMASA has also introduced monitoring and compliance measures aimed at ensuring transparency and preventing misuse of the scheme.
For many local shipowners facing ageing fleets, rising operating costs, limited access to affordable financing, and competition from foreign operators, the initiative has renewed hopes of expanding their businesses.
Following the portal’s launch, maritime stakeholders welcomed the development, expressing optimism that the digital application process would eliminate the delays and bureaucratic challenges that had previously stalled access to the fund.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, described the launch as an important milestone in strengthening indigenous participation in Nigeria’s coastal trade and repositioning the maritime sector.
NIMASA later disclosed that it had received more than 60 applications from interested shipowners since the portal became operational in January. The agency assured stakeholders that the selection and disbursement process would remain transparent and closely supervised.
The agency also reaffirmed its commitment to accountability and improved service delivery through the signing of its 2026 Sectoral Performance Bond, aligning its activities with national development priorities.
Despite these developments, industry stakeholders remain cautious, noting that previous administrations had also made similar promises without delivering the funds.
Many applicants are reportedly undergoing documentation review, credit assessment, and risk evaluation with participating financial institutions before final approval.
The Sea Empowerment and Research Centre (SEREC) stated that although significant progress has been made toward implementing the scheme, there is still no publicly confirmed evidence that any indigenous shipowner has received payment from the fund.
According to the group’s Head of Research, Eugene Nweke, government agencies have completed several administrative steps, including engaging lending institutions and processing applications, but the programme remains in its implementation phase rather than full disbursement.
SEREC urged stakeholders to remain cautiously optimistic until successful beneficiaries are officially announced and vessel acquisitions begin.
A maritime operator and Managing Director of Peacegate Oil and Gas Limited, Adedoyin Ayorinde, said he was not aware of any shipowner who had successfully accessed the fund, adding that industry players were still waiting for evidence of actual disbursement.
Licensed customs agent Timothy Jekwu also noted that while the programme has advanced significantly, public confirmation of successful fund releases is still lacking. He added that proper due diligence is necessary considering the scale of the initiative.
A source within the Ministry of Marine and Blue Economy, however, maintained that the programme has progressed beyond the administrative stage and is now at the implementation level.
Officials have also stressed that the long-term success of the CVFF will depend on beneficiaries repaying the loans, warning that poor repayment could undermine the sustainability of the programme.
According to NIMASA, the CVFF is designed as a revolving loan scheme rather than a grant, making repayment discipline essential to preserving the fund for future beneficiaries and supporting the long-term growth of Nigeria’s maritime sector.
