Nigeria’s maritime sector is seeing renewed interest in indigenous ship ownership following the Federal Government’s move to begin disbursing the long-delayed Cabotage Vessel Financing Fund (CVFF).
The Nigerian Maritime Administration and Safety Agency (NIMASA) has received 92 applications from Nigerian shipowners seeking financing under the scheme. However, only 20 of those applications have so far been forwarded to approved lending institutions, while just one has completed the review process and been sent for approval.
The development comes as the Federal Government pushes to end more than two decades of delays in accessing the fund. The Minister of Marine and Blue Economy, Adegboyega Oyetola, has directed NIMASA and the 12 approved Primary Lending Institutions to speed up the processing and disbursement of funds to qualified applicants.
Under the programme, successful Nigerian shipowners can access up to $25 million in financing to purchase vessels and expand their operations. The government hopes the scheme will increase Nigerian ownership of vessels and reduce the dominance of foreign operators in the country’s coastal and offshore shipping activities.
The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to support Nigerian-owned shipping companies in acquiring vessels and building capacity. Despite being established more than 20 years ago, the fund had remained largely undistributed until the government’s renewed effort to activate it.
To improve access to the financing, the government has increased the number of participating banks from five to 12. A CVFF application portal was also launched to make the process more transparent and structured.
The government expects the financing programme to generate significant economic activity beyond ship ownership. Oyetola said stronger indigenous participation could stimulate businesses involved in shipbuilding, marine engineering, vessel maintenance and maritime logistics, while creating more than 30,000 direct and indirect jobs.
The Federal Government is also investing in maritime manpower. According to Oyetola, 222 seafarers have received professional training, 333 cadets have completed academic training and obtained degrees, while 135 cadets under the Nigerian Seafarers Development Programme have obtained Certificates of Competency. In addition, 7,059 Nigerian seafarers have reportedly been placed onboard vessels to gain practical sea-time experience.
Meanwhile, the renewed push for indigenous ship ownership is coming at a time of increased interest from major Nigerian businesses. Dangote Group is planning to expand its shipping operations and acquire vessels, adding momentum to efforts to develop a stronger Nigerian-owned fleet.
Industry stakeholders have nevertheless called for faster implementation, warning that delays in accessing the CVFF could prevent Nigerian operators from taking advantage of opportunities in the maritime industry. At a recent Lagos Maritime Week discussion, stakeholders urged the government to accelerate disbursement of the fund to help indigenous operators acquire vessels and compete more effectively.
The Federal Government’s activation of the CVFF therefore represents an important step toward building Nigeria’s indigenous shipping capacity. If applications are processed and funds are released efficiently, the programme could support fleet expansion, create jobs and allow more of the economic value generated from Nigeria’s maritime activities to remain within the country.
