![\"After](\"https:\/\/i0.wp.com\/www.marineinsight.com\/wp-content\/uploads\/2026\/01\/nigerian-port-300x157.jpg?resize=300%2C157&ssl=1\")
<\/div>\n![\"nigerian](\"https:\/\/i0.wp.com\/www.marineinsight.com\/wp-content\/uploads\/2026\/01\/nigerian-port.jpg?resize=1200%2C628\")
Nigeria has begun the long-awaited disbursement of the $700 million Cabotage Vessel Financing Fund (CVFF), bringing to an end more than two decades of delay in making the fund accessible to indigenous shipowners.<\/p>\n
The move follows the launch of a digital application portal by the Minister of Marine and Blue Economy, Adegboyega Oyetola, in Lagos last week.<\/p>\n
The portal will allow eligible Nigerian shipowners to apply for financing under the Coastal and Inland Shipping (Cabotage) Act of 2003, which established the CVFF to support local vessel ownership.<\/p>\n
The CVFF has accumulated over $700 million since 2003 through a 2% compulsory levy on cabotage-protected shipping activities.<\/p>\n
However, Nigerian shipowners were unable to access the fund for 23 years due to the lack of a clear framework for disbursement and concerns over transparency and governance.<\/p>\n
Under the approved structure, eligible applicants can access up to $25 million each, covering 70% of the loan amount.<\/p>\n
Beneficiaries must provide at least 15% equity, while the remaining 15% will be financed by participating banks. The loans will have a tenure of eight years and attract an interest rate of 6.5%.<\/p>\n
The fund will be managed by the Nigerian Maritime Administration and Safety Agency (NIMASA) in partnership with vetted Primary Lending Institutions (PLIs).<\/p>\n
Applications will be submitted and processed digitally, with banks responsible for credit assessment, due diligence and loan administration.<\/p>\n
NIMASA has also set up a dedicated CVFF unit to oversee the process and ensure compliance.<\/p>\n
Officials have stated that the CVFF is designed as a revolving fund, meaning repayments from beneficiaries will be used to support future lending.<\/p>\n
The aim is to strengthen Nigeria\u2019s shipping capacity, reduce dependence on foreign-flagged vessels and retain more value within the domestic economy.<\/p>\n
The activation of the fund follows earlier policy signals from Oyetola, who last year announced plans to end the widespread waivers granted to foreign vessels operating in Nigerian coastal waters.<\/p>\n
These waivers had been issued due to limited local capacity, despite the Cabotage Act restricting coastal shipping to Nigerian-owned or operated vessels.<\/p>\n
The President of the African Shipowners Association\u2013Nigeria, Ladi Olubowale, has stated that the fund offers a major opportunity for Nigerian shipowners to expand and modernise their fleets.<\/p>\n
In 2024, the Clarion Group launched Clarion Shipping, Nigeria\u2019s first fully indigenous container line, acquiring a 349 TEU container feeder vessel, Ocean Dragon, with plans to expand across West Africa.<\/p>\n
Nigeria also welcomed its first locally owned FPSO, FPSO Emem, owned by Oriental Energy Resources.<\/p>\n