Federal Government to Offer Nigerian Shipowners Up to $25 Million Each Under New Fund

After more than 20 years of delay, Nigeria is moving to unlock its Cabotage Vessel Financing Fund, with qualified shipowners eligible to seek up to $25 million each for vessel purchases. Marine and Blue Economy Minister Adegboyega Oyetola said the long-awaited disbursement would strengthen Nigerian-owned shipping and create more than 30,000 direct and indirect jobs.

Oyetola said access to affordable, long-term finance had been one of the biggest obstacles facing domestic shipping companies. Under the fund, successful applicants will receive financing subject to assessment and approval. With loans at very low interest rates, he said, Nigerian operators could modernize their vessels, expand their fleets and compete for coastal and offshore contracts now dominated by foreign companies.

The minister framed the fund as a way to keep more value from Nigeria’s maritime activity in the country. He said the government wanted more Nigerian-owned vessels operating in Nigerian waters and more Nigerian businesses participating in the maritime economy.

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

Oyetola directed the Nigerian Maritime Administration and Safety Agency, or NIMASA, to accelerate disbursement in cooperation with 12 approved banks known as Primary Lending Institutions. NIMASA has received 92 applications. Of those, 20 have been forwarded to the banks, while one has been reviewed and sent on for approval.

The government expanded the number of approved banks from five to 12 and launched an online application portal. Oyetola said the portal was intended to make access to the fund more transparent, structured and accessible.

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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.