By Opeyemi Adelakun
The Federal Government is seeking to reduce the dominance of foreign operators in Nigeria’s maritime industry by giving indigenous shipowners access to up to $25 million each under the long-delayed Cabotage Vessel Financing Fund (CVFF).
Minister of Marine and Blue Economy, Adegboyega Oyetola, said the financing would give qualified Nigerian operators the capacity to acquire modern vessels, expand their fleets and compete for contracts in the country’s coastal and offshore waters.
The initiative comes against the backdrop of persistent concerns over the limited participation of Nigerian-owned vessels in maritime activities, despite the size of the country’s maritime economy.
Oyetola, in a statement posted on his X handle on Monday, said the Federal Government was finally moving to unlock the CVFF more than 20 years after the fund was established.
He explained that successful applicants would be able to access as much as $25 million, subject to the required assessment and approval process.
According to the minister, the availability of affordable long-term financing has remained one of the major obstacles preventing Nigerian shipping companies from building competitive fleets.
He said the government’s objective was to increase the number of Nigerian-owned vessels operating on Nigerian waters and ensure that more businesses and citizens benefit from economic activities within the maritime space.
To fast-track the process, Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to work with the 12 approved Primary Lending Institutions involved in the scheme.
NIMASA has received 92 applications, of which 20 have been forwarded to the participating banks. Only one application has so far been reviewed and forwarded for approval.
The minister said the number of approved banks was increased from five to 12 to improve access, while the launch of the CVFF Application Portal was intended to make the process more transparent and structured.
The government is also projecting significant knock-on effects from increased indigenous vessel ownership.
Oyetola said a stronger Nigerian fleet could drive business for shipyards, marine engineering firms, vessel maintenance companies and maritime logistics operators, while creating more than 30,000 direct and indirect jobs.
He said the financing programme was being complemented by investments in maritime manpower development.
According to him, 222 seafarers have received free professional training, 333 cadets have completed academic training and obtained degrees, while 135 Nigerian Seafarers Development Programme cadets have secured Certificates of Competency.
A further 7,059 Nigerian seafarers, he added, have been placed onboard vessels to obtain practical sea-time experience.
The CVFF was established by the Coastal and Inland Shipping (Cabotage) Act 2003 to strengthen indigenous participation in Nigeria’s shipping industry, particularly through vessel acquisition.
Its disbursement, however, has been delayed for more than two decades.
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