Over twenty years since its establishment, Nigeria's highly anticipated Cabotage Vessel Financing Fund is gradually moving toward execution, yet doubts remain as local ship operators continue waiting for the much-needed financial support, according to ANOZIE EGOLE.
For many years, native vessel owners in Nigeria have been waiting for what numerous see as the much-anticipated "breakthrough" of the shipping industry — the Cabotage Vessel Financing Fund.
Established pursuant to the Coastal and Inland Shipping Act of 2003, the fund aimed to support Nigerian shipping companies by providing them with financial resources for purchasing ships and growing their fleets.
Nevertheless, over twenty years since its establishment, the fund continues to be mostly unavailable, even though various government administrations have made multiple promises.
To assist shipowners, the Federal Government launched the Cabotage Vessel Financing Fund online platform in January 2026, leading several interested parties to think the prolonged wait was over.
The introduction marked a significant milestone for the advancement of Indigenous participation, openness, and financial independence in the shipping sector.
According to the agreement, recipients are required to offer a 15 percent equity share, whereas Main Lending Entities will supply 35 percent of the funding, with the Nigerian Maritime Administration and Safety Agency covering the rest amounting to 50 percent using funds from the Cabotage Reserve. The loans were anticipated to carry an interest rate below ten percent, specifically set at 6.5 percent, with an eight-year period for repaying the loan.
Although eligible candidates can receive financial assistance amounting to as much as $25 million, contingent upon thorough investigation, evaluation of feasibility, and adherence to legal standards, the planned duration of the program is roughly eight years with an anticipated interest rate below ten percent, currently estimated at 6.5 percent.
The NIMASA has created a specialized team responsible for implementing the CVFF program, along with procedures for adherence and oversight designed to promote openness and stop misuse of the initiative.
Among native vessel owners facing challenges such as outdated fleets, increasing expenses, international rivalry, and difficulty obtaining business financing, the statement seemed to offer promise.
Supporters welcomed the decision. Numerous people felt that the online application procedure would ultimately remove the obstacles, political involvement, and administrative lags that had troubled the fund for many years.
During the official event held in Lagos in January, the Minister for Maritime and Blue Economy, Adegboyega Oyetola, referred to the introduction of the platform as a key move aimed at revitalizing Nigeria's marine industry and enhancing local involvement in coastal commerce.
Several months following the announcement, it was revealed that NIMASA has begun accepting applications from concerned vessel owners. In April, The PUNCH noted that the Director-General of the Nigerian Maritime Administration and Safety Agency, Dr Dayo Mobereola, stated that the organization has gotten over 60 requests for the Cabotage Vessel Financing Fund since the online system was launched in January.
Mobereola pledged to stakeholders that the distribution of funds would be open and closely supervised.
The National Information Management Agency for Maritime Activities (NIMASA) has once again pledged its dedication to transparency, enhanced efficiency, and continuous development within the maritime industry through the execution of its 2026 Sectoral Performance Agreement, supervised by the Honorable Minister of Ocean and Blue Economy, Adegboyega Oyetola.
"Over 60 applications have been submitted since the platform went live in January 2026, guaranteeing that the distribution procedure will remain open and closely supervised," Mobereola stated.
He characterized the Performance Bond as an essential tool for monitoring outcomes, enhancing organizational responsibility, and ensuring the agency's activities correspond with country-wide objectives.
Stakeholders speak
Several interested parties claim that the postponement is undermining trust among investors in Nigeria's shipping industry.
They stated that although there is new energy; interested parties continue to be carefully hopeful because of past failed execution efforts and postponed funding release notifications from prior governments.
Present evidence indicates that the majority of applicants are currently at the stage of document evaluation, credit analysis, and risk examination with the involved banking entities.
In a chat with The PUNCH On Tuesday, a marine research organization affiliated with the Sea Empowerment and Research Centre acknowledged that although new progress regarding the CVFF suggests increased governmental dedication to implementing the program, "currently, there is no confirmed public information verifying that funds have actually been distributed to any Indigenous vessel owner."
Eugene Nweke, Director of Research at SEREC, stated that the organization recognizes the federal government, via the Ministry of Marine and Blue Economy along with NIMASA, has established essential administrative frameworks, such as involving primary lending institutions, initiating application procedures, and enhancing regulatory collaboration to support execution efforts.
SEREC mentioned that the federal government is said to have authorized "the initial plan for distributing money"; nevertheless, none of the officially identified recipients have confirmed receiving the funds up to May 2026.
"Nevertheless, current industry data indicates that the procedure is still at the review, credit evaluation, and organizational handling stage. Therefore, the CVFF should, at this point, be considered to be in an advanced deployment phase instead of a completed funding phase," SEREC stated.
SEREC thus encouraged industry participants, companies, and the broader community to maintain cautious optimism until there is formal verification of funds reaching recipients and tangible progress in acquiring ships.
"The Center also promotes openness, adherence to regulations, and ongoing involvement from all parties concerned, ensuring that the much-anticipated CVFF initiative meets its goal of enhancing local shipbuilding capabilities and increasing Nigeria's role in the maritime economy," it stated.
An experienced shipping company owner and the Managing Director of Peacegate Oil and Gas Limited, Mr Adedoyin Ayorinde, stated that he does not know of anyone who has received benefits from the fund.
"I made no effort to gain entry into the fund. Additionally, I can confirm that I am unaware of anyone who has managed to access it. That is simply how things stand. No one has informed me personally about being able to access it. I believe there might be some misunderstanding regarding this matter. It would certainly be beneficial if individuals were capable of accessing it," he stated.
A qualified and experienced customs officer, Mr. Timothy Jekwu, stated again that the current stance within the sector is that the CVFF procedure has moved into an ongoing execution and funding phase, "although complete distribution has not yet been clearly shown publicly."
He acknowledged that thorough investigation is essential, particularly considering the program's large financial scope and the importance of avoiding misuse.
An official from the ministry stated that the funding has moved past the administrative stage and is currently being implemented.
Earlier in May, The PUNCH noted that an Assistant Director within the Public Relations Department at the Abuja Regional Headquarters of the Nigerian Maritime Authority and Safety Agency, Chika Chukwudi, mentioned that the long-term viability of the Cabotage Ship Loan Fund relies completely on a robust payment discipline among those who benefit from it, cautioning that lacking appropriate payment habits could jeopardize the entire program's stability.
Professional specialists claim that obtaining inexpensive ship funding continues to be one of the main challenges hindering Nigerian maritime firms from matching international competitors.
Chukwudi mentioned this in a press release entitled “CVFF Disbursement and the Weight of Accountability: Why Adherence to Payments Is Important for Nigeria’s Seafaring Prospects,” which was acquired by The PUNCH recently.
He pointed out that the highly awaited distribution of Nigeria's CVFF represents a pivotal point for the country's marine industry, stating that the allocation of resources goes beyond mere implementation of policies: "It demonstrates a deliberate initiative to elevate Nigeria into a strong maritime power by supporting local vessel owners."
As per Chukwudi, beneath the enthusiasm about its distribution lies a deeper discussion focused on accountability, self-control, and the country's enduring interests.
"At its heart, the CVFF is not a grant but a lending mechanism intended for recovery. This difference is significant. The long-term viability of the fund relies completely on a solid track record of repayments from those who benefit. If this does not happen, the basic structure of the program could fail," Chukwudi stated.
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