ABUJA — Over two decades after its establishment under the Coastal and Inland Shipping (Cabotage) Act 2003, the Federal Government has officially commenced the final phase of disbursements under the Cabotage Vessel Financing Fund (CVFF), offering qualified Nigerian shipowners single-digit facility access of up to $25 million each to acquire modern maritime fleets.
Speaking on Monday, September 7, 2026, Minister of Marine and Blue Economy, Adegboyega Oyetola, confirmed that following the earlier launch of the dedicated CVFF digital portal and the expansion of Primary Lending Institutions (PLIs) from 5 to 12 pre-qualified commercial banks, the government has processed 92 formal applications, with initial approvals now advancing to final disbursement stages.
The single-digit interest intervention (fixed at 6.5% interest rate over an 8-year repayment tenor) aims to break foreign dominance over domestic coastal shipping, offshore supply vessel (OSV) operations, and energy-sector maritime contracts. Government estimates project that the fleet expansion will directly yield over 30,000 direct and indirect jobs across vessel engineering, logistics, seafaring, and shipyard maintenance.
Key Operational Guidelines & Framework
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Disbursement Cap & Equity Requirement: Successful applicants can access credit facilities up to $25 million per entity, with applicants providing a mandatory 15% equity contribution (~$3.75 million) to demonstrate commercial viability and project commitment.
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Streamlined Institutional Vetting: Applications processed via the Nigerian Maritime Administration and Safety Agency (NIMASA) portal undergo independent verification by approved PLIs—including Zenith Bank, UBA, Stanbic IBTC, First Bank, Fidelity Bank, and the Bank of Industry (BOI).
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Guaranteed Cargo & Fleet Fleet Expansion: Industry experts highlight that linking the $25 million facility to assured trade contracts (dry cargo, petroleum transport, and offshore support) will insulate indigenous shipowners against debt defaults while building a sustainable national fleet.
