FG Begins CVFF Disbursement, Moves To Expand Indigenous Shipping Capacity

By Samuel Egbewole 

The Federal Government has commenced the disbursement of the Cabotage Vessel Financing Fund (CVFF) as part of efforts to strengthen indigenous shipping capacity, improve local participation in the maritime sector and retain more maritime value within the Nigerian economy.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Thursday in Lagos at the 2026 Annual Summit of the Shipping Correspondents Association of Nigeria (SCAN).

Oyetola, who was represented by the ministry’s Director of Media, Mrs Anastasia Ogbonna, said the summit’s theme, “Low-Risk Capital for Indigenous Shipowners: Overcoming Regulatory and Financial Bottlenecks,” addressed some of the major challenges limiting the competitiveness of Nigerian shipowners.

He said the administration of President Bola Tinubu remained committed to expanding indigenous participation in the maritime industry, retaining maritime value within the national economy and creating sustainable employment opportunities for Nigerians.

The minister acknowledged that local shipping operators continued to face difficulties accessing long-term financing, particularly because vessel acquisition requires substantial capital amid high borrowing costs and stringent collateral conditions.

To address these constraints, Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence the CVFF disbursement process, establish a transparent application portal and increase the number of approved Primary Lending Institutions (PLIs) to 12.

He said the fund remained a strategic financing mechanism for enabling qualified Nigerian operators to acquire modern vessels, expand their fleets and stimulate growth in related sectors, including ship repair, marine engineering and maritime logistics.

Oyetola also urged financial institutions to develop financing products tailored to the needs of the maritime industry, while calling on shipowners to uphold sound corporate governance, disciplined loan repayment practices and professional fleet management to sustain lenders’ confidence.

Beyond the CVFF, the minister disclosed that the Federal Government was exploring the establishment of a commercially driven national shipping line through a public-private partnership arrangement.

He called for stronger collaboration among government agencies, financial institutions, regulators and shipowners to build a resilient indigenous shipping industry.

Also speaking, the Apapa Regional Manager of United Bank for Africa (UBA) Plc, Mr Nelson Edoye, reaffirmed the bank’s commitment to supporting indigenous participation across the maritime value chain through tailored financing and trade facilitation solutions.

Edoye, who represented the bank’s Group Managing Director, Mr Oliver Alawuba, described the summit’s theme as timely and strategic, particularly in view of its implications for economic diversification, employment generation and national prosperity.

He said UBA recognised the capital-intensive nature of shipping and would continue to work with regulators and other stakeholders to unlock growth opportunities for indigenous operators.

In his remarks, SCAN President, Mr Moses Ebosele, called for a comprehensive national strategy to address the financial, regulatory and infrastructural constraints preventing Nigerian shipowners from competing effectively with foreign operators.

Ebosele described shipping as a critical component of international trade and national economic development, noting that a strong indigenous fleet would enable Nigeria to retain more maritime revenue, generate employment, support local shipbuilding and strengthen its economic independence.

He identified limited access to affordable financing, high operational costs, multiple charges, policy inconsistencies and inadequate maritime infrastructure as major obstacles requiring urgent and coordinated intervention by the government, regulators and financial institutions.