Shipowners hopeful as CVFF enters implementation phase

After more than two decades, Nigeria's long-awaited Cabotage Vessel Financing Fund (CVFF) is moving towards implementation, offering a potential lifeline to indigenous shipowners. The fund, established by the Coastal and Inland Shipping Act of 2003, aims to provide financing for vessel acquisition and fleet expansion.

Despite numerous government assurances, the fund has remained largely inaccessible. However, the Federal Government launched the CVFF application portal in January 2026, sparking optimism among stakeholders. The process requires beneficiaries to provide a 15% equity contribution, with Primary Lending Institutions contributing 35% and the Nigerian Maritime Administration and Safety Agency (NIMASA) providing the remaining 50% from the Cabotage Fund.

Loans are projected at a single-digit interest rate of 6.5% with an eight-year repayment tenor, and qualified applicants can access up to $25 million, subject to due diligence. NIMASA has established a dedicated CVFF implementation structure to ensure transparency and prevent misuse of the scheme.

Indigenous shipowners, grappling with aging fleets, high operational costs, and foreign competition, see this as a significant development. The digital application process is expected to eliminate past bottlenecks, political interference, and bureaucratic delays. The Minister of Marine and Blue Economy, Adegboyega Oyetola, described the portal's launch as a strategic step to reposition Nigeria's maritime sector and boost indigenous participation in coastal trade. NIMASA has reportedly received over 60 applications.

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The launch of the portal as a strategic step towards repositioning Nigeria’s maritime sector and strengthening indigenous participation in coastal trade.