Nigerians Can Now Withdraw from Cabotage Funds, After 22 Years of Waiting

• The federal government of Nigeria has announced that the Cabotage Vessel Financing Fund (CVFF) is now accessible
• The funds are for qualified Nigerian shipowners to access loans at competitive interest rates to acquire internationally compliant vessels
• The CVFF, established in 2003 but never disbursed, has now been activated under Minister Adegboyega Oyetola’s directive

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigeria Minister of Marine and Blue Economy, Adegboyega Oyetola, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to commence disbursement of the long-awaited Cabotage Vessel Financing Fund (CVFF).

The development is to unlock access of up to $25 million per qualified applicant at competitive interest rates.

The move, announced in a statement by the Minister’s Special Adviser on Media and Communications, Bolaji Akinola, marks the end of more than two decades of administrative delays since the fund’s establishment under the Coastal and Inland Shipping (Cabotage) Act of 2003.

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Part of the statement reads:

“The disbursement of the CVFF represents not just the release of funds, but a profound commitment to empowering Nigerian maritime operators, bolstering national competitiveness, and fostering sustainable economic development."

How the cabotae funds will work?

The fund, estimated at $350 million as of 2024, is designed to support indigenous shipowners in acquiring vessels that meet international safety and performance standards.

Oyetola said the CVFF would be administered through approved Primary Lending Institutions to ensure a transparent and efficient process, The Nation reports.

He added:

“This is a turning point that affirms our commitment to local content, economic resilience, and maritime sovereignty.”

The former Osun State governor said the fund’s activation was a deliberate step under President Bola Tinubu’s leadership to reposition the country’s maritime industry and reduce its dependence on foreign vessel chartering.

His words:

“For over 20 years, the CVFF remained a dormant promise. Today, we are bringing it to life deliberately, transparently, and strategically. The initiative as a strategic investment in the future of Nigeria’s maritime economy."

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According to the minister, the disbursement is expected to catalyse growth in local shipbuilding and repair industries, create employment, reduce capital flight, and build a stronger indigenous shipping fleet.

NIMASA has already issued a Marine notice inviting eligible Nigerian shipping companies to apply for the fund, in line with the new directive, Punch reports.

Oyetola said:

“This is not just about funding vessels; it’s about rewriting a chapter in the nation’s maritime history.

“Through this intervention, we will be securing jobs, strengthening our economy, and redefining our place in the global maritime economy.”

Concerns as the US rejects shipments from Nigeria

Ealier, Legit.ng reported that over 70% of shipments from Nigeria to the United States have either been denied entrance or put on hold at airports.

This worrying trend has resulted in significant delays, posing major issues for importers and shippers operating in the US market, according to Ini Daniel, chief commercial officer of AAJ Express Logistics Limited, who made the announcement yesterday.

Source: Legit.ng