Federal Government Takes Steps to Activate Cabotage Vessel Financing Fund for Shipowners

In a significant move after 20 years of delays, the Federal Government of Nigeria has initiated steps to unlock the Cabotage Vessel Financing Fund (CVFF) for domestic shipowners. Minister of Marine and Blue Economy, Adegboyega Oyetola, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to collaborate with the 12 approved Primary Lending Institutions (PLIs) to hasten the processing of applications for this critical fund.

Currently, 92 applications have been received under the CVFF framework, with 20 already forwarded to lenders for consideration. One application has also been reviewed and submitted for approval, signaling a renewed commitment to facilitating access to this vital financing mechanism that has long been hindered by bureaucratic delays. Oyetola emphasized the need for swift action to ensure that the fund becomes a functional resource for Nigerian maritime operators.

The CVFF was established to provide low-interest, long-term financing aimed at enabling Nigerian shipowners to acquire modern vessels and expand their operational fleets. As the fund has accumulated over two decades, its activation is anticipated to create approximately 30,000 jobs within the maritime sector, significantly enhancing indigenous participation and investment.

“The Federal Government is determined to make the CVFF a functional financing instrument for Nigerian maritime operators,” Oyetola stated, highlighting the government's commitment to revitalizing the sector.

This initiative reflects a broader strategy to bolster Nigeria's maritime industry, which is seen as a critical component of the nation's economic growth and development. By improving access to financing, the government aims to empower local shipowners and foster a more competitive maritime environment.