The Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, has reiterated his directive to the Nigerian Maritime Administration and Safety Agency (NIMASA) to fast-track the disbursement of the Cabotage Vessel Financing Fund (CVFF) to qualified indigenous shipowners to strengthen local shipping capacity and improve Nigeria’s competitiveness in the global maritime industry.
Oyetola, who disclosed this at the 2026 Annual Summit of the Shipping Correspondents Association of Nigeria (SCAN) in Lagos on Thursday, said the Federal Government was committed to moving the CVFF from prolonged delays to practical outcomes that would enable Nigerian operators to acquire vessels, expand their fleet and create employment opportunities.
The Minister, who was represented at the event, said the administration of President Bola Ahmed Tinubu recognised the difficulties indigenous shipowners face in securing long-term financing at commercially sustainable rates, noting that high borrowing costs, stringent collateral requirements and lengthy repayment periods had placed Nigerian operators at a competitive disadvantage.
He said the government had taken concrete steps to operationalise the fund, established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to support indigenous vessel ownership. According to him, the ministry launched a dedicated CVFF application portal in January 2026 to promote transparency, accessibility and efficiency in the application process, while increasing the number of approved Primary Lending Institutions (PLIs) from five to 12.
“I have since directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the process of disbursing the Fund to qualified beneficiaries. NIMASA has also been directed to work closely with the approved PLIs to accelerate the assessment and disbursement process.
This directive reflects our determination to move from prolonged waiting to practical outcomes,” Oyetola said. The Minister, whose address focused on the theme, “Low-Risk Capital for Indigenous Shipowners: Overcoming Regulatory and Financial Bottlenecks,” described the CVFF as a strategic instrument for developing indigenous shipping capacity.
He said effective deployment of the fund would enable qualified Nigerian operators to acquire modern vessels, expand their fleets and compete more effectively, while stimulating growth in ship repair, marine engineering, maritime logistics and other supporting industries.
However, Oyetola stressed that the fund must be administered with transparency, rigorous due diligence and prudent risk management to ensure its sustainability as a revolving facility. He said responsible borrowing, repayment and accountability were critical to preserving the fund and ensuring that more indigenous operators could benefit from it.
The Minister reaffirmed the Federal Government’s commitment to implementing the Cabotage Act, stressing that protecting Nigerians’ participation in domestic shipping must be accompanied by efforts to strengthen their financial, technical and operational capacity.
He noted that reducing investment risks in the maritime sector required more than making funds available, adding that a predictable regulatory environment, credible business plans, transparent financing arrangements, effective insurance, competent management and reliable revenue streams were equally important.