Oyetola directs NIMASA to disburse $350m cabotage fund to local shipping firms
The Minister of Marine and Blue Economy, Adegboyega Oyetola on Tuesday directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the process for the disbursement of $350 million Cabotage Vessel Financing Fund (CVFF) to indigenous ship owners.
NIMASA, in alignment with the minister’s directive, has immediately issued a Marine Notice inviting eligible Nigerian shipping companies to apply.
Qualified applicants can access up to $25 million each at competitive interest rates to acquire vessels that meet international safety and performance standards.
The fund will be administered in partnership with approved primary lending institutions (PLIs) to ensure professional and efficient disbursement.
Oyetola said the commencement of disbursement of the CVFF, which had been dormant for more than 20 years, was in line with the intentional development of the country’s maritime sector, under President Bola Tinubu’s economic agenda.
“This is not just about disbursing funds. It’s about rewriting a chapter in our maritime history. For over 20 years, the CVFF remained a dormant promise. Today, we are bringing it to life—deliberately, transparently, and strategically.
“We are not merely funding vessels; we are investing in a future where Nigerian shipping companies can stand shoulder-to-shoulder with their international counterparts. This is a turning point—one that affirms our commitment to local content, economic resilience, and maritime sovereignty,” Oyetola said.
According to him, the release of the CVFF underscores a clear and strategic vision that prioritises development of strategic national assets.
He said, “We are doing what should have been done years ago—because our vision is clear. A strong indigenous fleet is not just a matter of pride; it is a strategic national asset. Through this intervention, we will be securing jobs, strengthening our economy, and redefining our place in the global maritime economy”.
The CVFF, established under the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to empower Nigerian shipping companies through access to structured financing for vessel acquisition. However, successive administrations had failed to operationalise the fund.
The disbursement of the CVFF is expected to generate far-reaching benefits, including development of stronger, self-sufficient shipping fleets, employments, development of local shipbuilding and repair industries, and significant reduction in capital flight associated with foreign vessel chartering.
