FG Moves To Disburse $25m Cabotage Fund To Nigerian Shipowners

FG Moves to Disburse $25m Cabotage Fund to Nigerian Shipowners

The Federal Government has moved to begin disbursing the long delayed Cabotage Vessel Financing Fund CVFF to qualified Nigerian shipowners, with each successful applicant eligible to access up to $25 million in financing. Minister of Marine and Blue Economy, Adegboyega Oyetola, said the initiative is aimed at strengthening indigenous participation in Nigeria’s maritime industry and reducing the dominance of foreign operators in the country’s waters.

The CVFF was established more than 20 years ago under the Coastal and Inland Shipping Cabotage Act of 2003 to support Nigerian shipping companies in acquiring vessels and developing local capacity. Its disbursement, however, remained stalled for more than two decades.Oyetola said the financing would enable Nigerian shipowners to acquire modern vessels, expand their fleets and compete for coastal and offshore contracts that are currently dominated by foreign operators. The minister has directed the Nigerian Maritime Administration and Safety Agency NIMASA to accelerate the disbursement process in collaboration with 12 approved Primary Lending Institutions. According to Oyetola, NIMASA has received 92 applications from prospective beneficiaries. Twenty applications have been forwarded to the approved lending institutions, while one has so far been reviewed and sent forward for approval. The government has also increased the number of participating banks from five to 12 and launched an online CVFF application portal in an effort to make the process more transparent, structured and accessible. Beyond vessel acquisition, the government expects the fund to stimulate activities in shipbuilding, marine engineering, vessel maintenance and maritime logistics. Oyetola projected that the initiative could create more than 30,000 direct and indirect jobs. The minister also highlighted ongoing efforts to develop manpower for the maritime sector, disclosing that 222 seafarers had received professional training, 333 cadets had completed academic training and obtained degrees, while 135 cadets under the Nigerian Seafarers Development Programme had secured Certificates of Competency.Oyetola further said 7,059 Nigerian seafarers had been placed onboard vessels to gain practical sea-time experience. The Federal Government said the revival of the CVFF forms part of its broader effort to strengthen Nigeria’s Blue Economy, increase indigenous ownership of vessels and ensure that more economic value generated from the country’s maritime sector remains within Nigeria.