NIMASA to fast-track disbursement of $360m cabotage fund
Agency Report
The federal government on Thursday directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to fast-track the disbursement of the $360 million Cabotage Vessel Financing Fund (CVFF) to qualified indigenous shipowners to strengthen local shipping capacity and improve Nigeria’s competitiveness in the global maritime industry.
Minister of Marine and Blue Economy, Adegboyega Oyetola disclosed this at the 2026 Annual Summit of the Shipping Correspondents Association of Nigeria (SCAN) in Lagos saying the President Bola Tinubu’s administration was committed to moving the CVFF from prolonged delays to practical outcomes that would enable Nigerian operators to acquire vessels, expand their fleets and create employment opportunities.
The Minister said the administration recognised the difficulties indigenous shipowners face in securing long-term financing at commercially sustainable rates, noting that high borrowing costs, stringent collateral requirements and lengthy repayment periods had placed Nigerian operators at a competitive disadvantage.
He said the government had taken concrete steps to operationalise the fund, established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to support indigenous vessel ownership.
According to him, the ministry launched a dedicated CVFF application portal in January 2026 to promote transparency, accessibility and efficiency in the application process, while increasing the number of approved Primary Lending Institutions (PLIs) from five to 12.
“I have since directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the process of disbursing the Fund to qualified beneficiaries.
“NIMASA has also been directed to work closely with the approved PLIs to accelerate the assessment and disbursement process. This directive reflects our determination to move from prolonged waiting to practical outcomes,” Oyetola said.
The Minister, whose address focused on the theme, “Low-Risk Capital for Indigenous Shipowners: Overcoming Regulatory and Financial Bottlenecks,” described the CVFF as a strategic instrument for developing indigenous shipping capacity.
He said effective deployment of the fund would enable qualified Nigerian operators to acquire modern vessels, expand their fleets and compete more effectively, while stimulating growth in ship repair, marine engineering, maritime logistics and other supporting industries.
However, Oyetola stressed that the fund must be administered with transparency, rigorous due diligence and prudent risk management to ensure its sustainability as a revolving facility.
He said responsible borrowing, repayment and accountability were critical to preserving the fund and ensuring that more indigenous operators could benefit from it.
The Minister reaffirmed the Federal Government’s commitment to implementing the Cabotage Act, stressing that protecting Nigerians’ participation in domestic shipping must be accompanied by efforts to strengthen their financial, technical and operational capacity.
He noted that reducing investment risks in the maritime sector required more than making funds available, adding that a predictable regulatory environment, credible business plans, transparent financing arrangements, effective insurance, competent management and reliable revenue streams were equally important.
Oyetola urged financial institutions to deepen their understanding of the maritime industry and develop financing products that reflect the sector’s commercial realities.
He said vessel financing decisions should take into account asset values, charter contracts, projected cash flows, operational costs and the long-term nature of shipping investments.
He also urged shipowners to embrace sound corporate governance, transparent financial reporting, professional fleet management and disciplined repayment practices, noting that lenders’ confidence depended on demonstrated competence and commercial integrity.
Beyond the CVFF, the Minister disclosed that the Federal Government was pursuing broader initiatives to strengthen indigenous participation in shipping, improve maritime safety, develop Nigerian seafarers and expand services supporting vessel ownership and operations.
He also revealed that the government was exploring a commercially driven national shipping line initiative to complement indigenous operators, expand Nigeria’s shipping capacity and operate on a sustainable commercial basis.
According to him, the proposed initiative would be anchored on private capital, professional management, public-private partnership and strategic international expertise.
“Our wider objective is to encourage greater Nigerian ownership of vessels capable of serving domestic trade and participating competitively in international shipping,” he said.
Oyetola added that expanding indigenous vessel ownership must go hand in hand with creating opportunities for Nigerian seafarers to gain sea-time experience, develop professional competence and secure meaningful employment.
He called for stronger partnerships among government, shipowners, financiers, regulators and industry professionals to build a competitive and resilient maritime industry.
The Minister said the government would continue to provide an enabling environment, while financial institutions were expected to make responsible capital available, shipowners demonstrate commercial discipline and regulators ensure fairness, transparency and efficiency.
He urged participants at the summit to develop practical recommendations that would translate into faster access to financing, reduced regulatory bottlenecks and the development of a stronger Nigerian-owned fleet.
Oyetola said the Tinubu administration remained committed to strengthening indigenous shipping and ensuring that Nigerians secured a greater share of the opportunities generated by the country’s maritime economy.
