FG orders immediate disbursement of CVFF to encourage indigenous shipping

By Kunle Sanni

After more than two decades of anticipation, the Federal Government has finally unlocked the Cabotage Vessel Financing Fund (CVFF), following a directive by the Minister of Marine and Blue Economy, Adegboyega Oyetola, to the Nigerian Maritime Administration and Safety Agency (NIMASA) to begin immediate disbursement.

The fund, created under the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to help Nigerian shipping companies acquire modern vessels and compete effectively with foreign counterparts in coastal and inland waters. However, the CVFF had remained inaccessible, leaving indigenous operators without much-needed financial support.

Describing the move as the beginning of “a new era for Nigerian maritime,” Oyetola, in a statement released on Tuesday by the ministry’s Director of Information, Anastasia Ogbonna, said the disbursement will inject capital into the local shipping industry, enhance job creation, and boost economic growth.

“This is more than just the release of funds; it is the dawn of a new era… we are initiating a transparent and strategic disbursement process,” he said.

According to the statement, NIMASA, in response to the minister’s directive, has issued a Marine Notice inviting eligible Nigerian shipping companies to apply for the fund. Beneficiaries could access up to $25 million each through vetted Primary Lending Institutions, at competitive interest rates, for the purchase of internationally compliant vessels.

Oyetola emphasized that the initiative goes beyond vessel financing. “We are strategically investing in the future of Nigeria’s maritime industry,” he said, stressing the government’s intention to position local companies as global players.

The fund is expected to revamp the Nigerian maritime sector by enabling the growth of a robust indigenous fleet, stimulating local shipbuilding, creating employment, and reducing dependence on foreign vessels for coastal operations.

Industry stakeholders have hailed the development as a “game-changer” and a “historic turning point” that could transform the sector and elevate Nigeria’s status in the global maritime community.