President Bola Tinubu has authorized the immediate disbursement of the $700 million Cabotage Vessel Financing Fund, unlocking long-term capital for indigenous shipowners after two decades of institutional paralysis.
According to official disclosure reports from the Federal Ministry of Marine and Blue Economy, this operational breakthrough targets the structural bottlenecks stifling domestic maritime expansion.
The process gained significant momentum with the launch of the dedicated CVFF Application Portal in Lagos, designed to streamline digital applications and improve transparency.
To accelerate credit access, the administration expanded the network of designated Primary Lending Institutions from five to twelve commercial banks.
The Nigerian Maritime Administration and Safety Agency has processed 92 submissions, channeling 20 viable applications to these accredited banks for final appraisal.
Out of these active files, exactly one application has successfully cleared exhaustive technical evaluations and advanced to final loan authorization.
Industry data reveals that while Nigeria generates over $6 billion annually in maritime freight, foreign-flagged vessels control roughly 80% of coastal trade.
Minister Adegboyega Oyetola stressed the urgency during a recent briefing, stating, “We are determined to break historical bottlenecks so that Nigerian operators can effectively acquire assets.”
Accumulated through a statutory 2% surcharge on domestic coastal trade since 2003, the financing pool offers single-digit interest loans for fleet expansion.
Parallel human capital efforts have successfully placed over 7,000 Nigerian seafarers onboard active vessels to fulfill mandatory sea-time training requirements.
Qualified operators must interface directly with the approved commercial banks, provide a 15% equity counterpart, and submit collateral documentation.
