Federal Government Launches Digital Portal for $25 Million Cabotage Vessel Financing Fund
The Federal Government of Nigeria has officially launched a digital application portal for the Cabotage Vessel Financing Fund (CVFF), marking a significant step toward disbursing up to $25 million to eligible Nigerian shipowners. This initiative, unveiled in Lagos on Thursday, January 22, by Adegboyega Oyetola, Minister of Marine and Blue Economy, aims to expand indigenous participation in coastal and inland shipping while strengthening Nigeria's maritime capacity.
Eligibility and Application Requirements for CVFF Funding
According to a marine notice issued by the Nigerian Maritime Administration and Safety Agency (NIMASA), the CVFF was established under Section 42 of the Coastal and Inland Shipping (Cabotage) Act 2003. The fund is administered in line with the CVFF Guidelines 2006 to provide financial assistance for indigenous ship acquisition. Only Nigerian citizens and shipping companies wholly owned by Nigerians are eligible to apply for loans or guarantees from the fund.
To qualify, applicants must meet several strict requirements, including:
- Submission of a bankable feasibility report, subject to independent verification by an approved Primary Lending Institution (PLI) and NIMASA.
- Provision of a minimum equity contribution of 15% of the credit facility requested.
- Payment of all prescribed fees associated with the application process.
- Demonstration of sufficient managerial and operational capacity to manage the vessel acquisition.
- Reaching an agreement with a PLI on its participation in the credit facility.
- Providing acceptable security or collateral to secure the loan.
- Submitting evidence of contribution to the CVFF, along with any additional conditions that may be required by the fund.
Each qualifying individual applicant or group of related applicants can access a credit facility of up to $25 million or its equivalent in an approved currency. Applications must be routed strictly through approved PLIs and will be assessed using defined risk acceptance criteria, with only qualifying submissions granted access.
Government Objectives and Impact on the Maritime Sector
Speaking at the launch event, Minister Oyetola emphasized that the digital platform is designed to ensure transparency, accountability, and prudent management of the fund. It will support timely repayment to sustain the CVFF as a revolving facility. Oyetola highlighted that this initiative aims to reduce Nigeria's dependence on foreign-flagged vessels, deepen local participation in shipping, create jobs for Nigerian seafarers, and stimulate growth across shipbuilding and maritime services.
"Through this platform, eligible Nigerian shipowners can submit applications that will be assessed against clearly defined criteria, supported by robust due diligence and professional financial oversight through approved Primary Lending Institutions," Oyetola stated.
Dr. Dayo Mobereola, Director General of NIMASA, added that the agency's objective is to make the CVFF a practical and reliable financing window for Nigerian shipowners to acquire vessels at competitive long-term financing rates.
Approved Primary Lending Institutions for CVFF Disbursement
NIMASA has appointed 12 banks as Primary Lending Institutions (PLIs) for the disbursement of the CVFF funds. These banks include Fidelity Bank, Stanbic IBTC, United Bank for Africa (UBA), Zenith Bank, Lotus Bank, Union Bank, First Bank, Jaiz Bank, SunTrust Bank, and Globus Bank. This appointment follows an earlier selection of five banks in 2023, expanding the network to facilitate broader access to the fund.
The launch of the CVFF portal represents a long-awaited move by the federal government to unlock financial resources for the maritime sector, potentially boosting indigenous vessel ownership and creating numerous job opportunities across Nigeria's maritime industry.
