Adegboyega Oyetola, minister of maritime and blue economy, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the process for the disbursement of the cabotage vessel financing fund (CVFF).
In a statement on Tuesday signed by Bolaji Akinola, media and communications adviser to the minister, Oyetola said the directive marks a significant shift from over two decades of administrative stagnation and ushers in a new era of strategic repositioning of Nigeria’s indigenous shipping.
“Successive administrations failed to operationalise the fund until now,” he said.
“Under the visionary leadership of President Bola Tinubu, and my determined stewardship, the federal government has signalled a deliberate course correction.
“The disbursement of the CVFF will represent not just the release of funds, but a profound commitment to empowering Nigerian maritime operators, bolstering national competitiveness, and fostering sustainable economic development.
“For over 20 years, the CVFF remained a dormant promise. Today, we are bringing it to life deliberately, transparently, and strategically.”
According to the minister, NIMASA has already issued a marine notice inviting eligible Nigerian shipping companies to apply.
He said qualified applicants can access up to $25 million each at competitive interest rates, enabling them to acquire vessels that meet international safety and performance standards.
Oyetola said the fund would be administered in partnership with carefully selected and approved primary lending institutions (PLIs), ensuring professionalism and efficiency in disbursement.
The minister said the purpose is not about financing vessels but about building a future in which Nigerian shipping companies can compete on equal footing with their global peers.
“This is a turning point, one that affirms our commitment to local content, economic resilience, and maritime sovereignty,” he said.
“The disbursement of the CVFF is anticipated to yield far-reaching benefits.
“It will enable the growth of a stronger, self-sufficient shipping fleet, generate employment opportunities, stimulate local shipbuilding and repair industries, and significantly reduce capital flight associated with foreign vessel chartering.”
‘CABOTAGE VESSEL FUND WILL ENHANCE LOGISTICS EFFICIENCY’
The minister said that with proper implementation, the CVFF would help realign the industry toward long-term growth, enhanced logistics efficiency, and global relevance.
He said the ministry is working with a clear vision to ensure that the marine sector goes beyond having a strong indigenous fleet but having pride and a strategic national asset.
Oyetola noted that the initiative would help create employment, boost the nation’s economy, and reposition Nigeria within the global maritime landscape.
“This decisive action by the Tinubu administration and the Ministry of Marine and Blue Economy represents a historic milestone, reaffirming Nigeria’s readiness to take its rightful place on the global maritime stage,” the minister said.
“This is powered by indigenous capacity, guided by clear policy, and sustained by unwavering political will.”
On April 5, 2023, Bashir Jamoh, director-general of NIMASA, said about $700 million has been set aside for the CVFF.
The fund, according to Jamoh, aims to support indigenous ship acquisition capacity and to provide financial assistance to domestic coastal shipping operators.(The Cable)
