Nigeria's Maritime Sector Receives Major Boost as CVFF Portal Opens After 23-Year Wait
In a landmark development for Nigeria's maritime industry, the Federal Government has officially launched the application portal for the Cabotage Vessel Financing Fund (CVFF), ending a 23-year delay that has long hindered indigenous shipowners. The digital platform now enables qualified Nigerian operators to access funding of up to $25 million each for vessel acquisition and maritime asset development, marking a significant turning point for the sector.
Minister Oyetola Emphasizes Sustainable Impact and Local Competitiveness
Speaking at the portal's inauguration, the Minister of Marine and Blue Economy, Adegboyega Oyetola, highlighted the CVFF as a revolving fund designed to deliver lasting benefits to Nigeria's maritime ecosystem. He stressed that timely loan repayment by beneficiaries is crucial to ensure the fund remains available for future generations of Nigerian maritime entrepreneurs. The minister emphasized that this intervention aims to reduce foreign dominance in coastal and inland shipping while fostering a competitive indigenous fleet capable of participating meaningfully in the nation's maritime value chain.
Transparent Digital Framework to Prevent Past Abuses
The newly launched portal, managed by the Nigerian Maritime Administration and Safety Agency (NIMASA), introduces a transparent, rules-based application process that eliminates the arbitrariness and administrative weaknesses that plagued previous intervention funds. Minister Oyetola explained that the digital structure was specifically designed to ensure fairness and accountability, with the Ministry collaborating closely with NIMASA, the Federal Ministry of Finance, the Central Bank of Nigeria, and other stakeholders to align the CVFF framework with international best practices.
Favorable Loan Terms and Streamlined Disbursement Process
NIMASA Director-General, Dayo Mobereola, announced that approved loans will carry a single-digit interest rate of 6.5 percent, with repayment structured over an eight-year tenor. This favorable terms package is intended to ease financial pressure on indigenous shipowners and strengthen local shipping capacity. The application and disbursement process has been streamlined to ensure efficiency:
- Application processing through Primary Lending Institutions (PLIs) is capped at 30 days
- NIMASA's internal review and eligibility certificate issuance will take approximately 7 days
- Final ministerial approval is expected within 30 days
- Once pre-disbursement conditions are met, NIMASA will release funds within 72 hours
- PLIs are then required to immediately disburse loans to beneficiaries
Eligibility Requirements and Participating Financial Institutions
Applicants must submit bankable, transaction-based proposals supported by comprehensive feasibility studies and equity contributions. Twelve financial institutions have been pre-qualified to participate in the programme, including:
- Zenith Bank
- United Bank for Africa (UBA)
- Union Bank
- First Bank of Nigeria
- Stanbic IBTC Bank
- Fidelity Bank
- Jaiz Bank
- Taj Bank
- SunTrust Bank
- Lotus Bank
- Optimus Bank
- Bank of Industry
Historical Context and Industry Implications
The Coastal and Inland Shipping (Cabotage) Act of 2003 originally established the CVFF to boost indigenous ship purchase capacity by providing financial assistance to Nigerian operators in domestic shipping. For over two decades, however, the fund remained inaccessible, forcing local operators to contend with ageing vessels and limited capital while foreign firms dominated lucrative maritime contracts. This long-awaited intervention is expected to revitalize Nigeria's shipping industry, create jobs, and retain billions of dollars within the national economy that previously flowed overseas.
The portal's opening follows recent parliamentary developments, including the House of Representatives' approval for disbursement of the $700 million Cabotage fund and subsequent calls for NIMASA to ensure proper oversight. With clear timelines, transparent processes, and favorable financing terms now in place, indigenous shipowners can finally embark on vessel modernization and fleet expansion projects that will enhance Nigeria's maritime competitiveness for years to come.
