The Federal Government is set to begin disbursing the long-awaited Cabotage Vessel Financing Fund to qualified Nigerian shipowners, with successful applicants eligible to access up to $25m each.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday, saying the initiative could strengthen indigenous shipping capacity and create more than 30,000 direct and indirect jobs.

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Oyetola said the government was finally moving to unlock the fund more than 20 years after it was established to support Nigerian-owned shipping companies.

“After more than 20 years, we are finally moving to unlock the Cabotage Vessel Financing Fund for Nigerian shipowners,” the minister said.

He described the move as a major step towards building a stronger Nigerian-owned shipping industry, creating jobs and ensuring that more of the value generated from Nigeria’s maritime activities remains within the country.

According to Oyetola, each successful applicant will be able to access up to $25m in financing for vessel acquisition, subject to the applicable assessment and approval process.

He identified access to affordable, long-term financing as one of the major challenges limiting the growth and competitiveness of Nigerian-owned shipping companies.

“With access to financing at very low interest rates, our shipowners can acquire modern vessels, expand their fleets and compete for coastal and offshore contracts that are currently dominated by foreign operators,” he said.

The minister said the government’s objective was to increase the number of Nigerian-owned vessels operating on the country’s waters and enable more local businesses to participate in the maritime economy.

Oyetola has directed the Nigerian Maritime Administration and Safety Agency to accelerate the disbursement process in collaboration with the 12 approved banks serving as Primary Lending Institutions.

NIMASA has so far received 92 applications, of which 20 have been forwarded to the approved lending institutions. Only one application has so far been reviewed and forwarded for approval, according to the minister.

He said the number of approved banks had been increased from five to 12 to speed up access to the fund, while a CVFF application portal had also been launched to make the process more transparent and accessible.

Oyetola said the impact of the CVFF would extend beyond the acquisition of vessels, with increased indigenous ownership expected to stimulate activity across the wider maritime value chain.

He said the stronger indigenous fleet could boost shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries.

“The disbursement of the CVFF could help create a stronger indigenous fleet, which will in turn stimulate activity in shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries,” he said.

“It could also create more than 30,000 direct and indirect jobs, while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.”

The minister said the initiative formed part of the Tinubu administration’s efforts to unlock the potential of Nigeria’s Blue Economy and increase indigenous participation in the maritime sector.

Oyetola also highlighted government efforts to develop the workforce required to support a stronger indigenous maritime industry.

He said 222 seafarers had received free professional training, while 333 cadets had completed academic training and obtained degrees.

He added that 135 cadets under the Nigerian Seafarers Development Programme had obtained Certificates of Competency, while 7,059 Nigerian seafarers had been placed onboard vessels to gain sea-time experience.

“Financing vessels is only one part of building a stronger indigenous maritime industry. We are equally investing in the people who will power this industry,” he said.

The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to support Nigerian shipping companies in acquiring vessels and developing indigenous capacity.

However, its disbursement has remained stalled for more than two decades.

The Federal Government launched the CVFF application portal in January 2026, announcing that successful applicants could access up to $25m in financing.

NIMASA subsequently began receiving applications from interested operators and disclosed in April that more than 60 applications had been received within four months of the portal opening.

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The latest figure of 92 applications indicates continued interest in the scheme, although only one application has so far progressed to the approval stage.