Fleet Expansion: After 20 years of delay, Oyetola moves to unlock Cabotage fund
By Maureen Aguta
The Minister of Marine and Blue Economy, Adegboyega Oyetola, has directed the Nigerian Maritime Administration and Safety Agency (NIMASA) and the 12 approved Primary Lending Institutions (PLIs) to fast-track the disbursement of the Cabotage Vessel Financing Fund (CVFF) to qualified Nigerian shipowners.
The directive is part of the Federal Government’s renewed efforts to end more than two decades of delays in accessing the fund and unlock fresh investment, fleet expansion and job creation in Nigeria’s maritime sector.
In a statement issued on Sunday by his Special Adviser, Dr. Bolaji Akinola, Oyetola said significant progress had been recorded in the processing of applications under the CVFF framework.
He disclosed that NIMASA had received 92 funding applications, with 20 already submitted to the PLIs, while one application had been reviewed and forwarded for approval.
According to the minister, the development represents a significant step towards strengthening indigenous participation in the maritime industry and addressing the long-standing financing challenges confronting Nigerian shipowners.
Oyetola had, in April 2025, directed NIMASA to commence the process for the disbursement of the CVFF, signalling a renewed government push to unlock the fund and reposition Nigeria’s indigenous shipping capacity.
The process gathered further momentum with the launch of the CVFF Application Portal in Lagos on January 22, 2026. The portal provides an organised and transparent platform for eligible Nigerian shipowners to submit applications for financing.
In a move aimed at widening access to the fund, Oyetola also expanded the number of PLIs from five to 12, giving applicants more financing channels under the CVFF framework.
The CVFF, which has accumulated for more than two decades without being accessed by Nigerian shipowners, is designed to provide low-interest, long-term financing for the acquisition of modern vessels and expansion of indigenous fleets.
The fund is expected to enhance the capacity of Nigerian shipowners to compete for coastal and offshore shipping contracts, reduce dependence on foreign vessel operators and retain a greater share of maritime value within the Nigerian economy.
Oyetola said the initiative could generate more than 30,000 direct and indirect jobs across shipyards, marine engineering firms and maritime logistics companies, while strengthening Nigeria’s domestic ship-owning and shipbuilding ecosystem.
He said the Federal Government’s decision to commence disbursement of the CVFF followed President Bola Tinubu’s authorisation to address the long-standing financing needs of domestic maritime operators and unlock the economic potential of the blue economy.
Beyond vessel financing, the minister said the government was also investing in the development of Nigerian seafarers, with the Ministry, through NIMASA, expanding training, certification and welfare initiatives to create greater opportunities for maritime professionals.
Oyetola disclosed that 222 seafarers had received free training in basic and advanced professional courses, while 333 cadets had completed their academic training and been awarded degrees.
He added that, under the Nigerian Seafarers Development Programme (NSDP), 135 cadets had successfully completed the programme and obtained their Certificates of Competency (CoC).
The minister further disclosed that 7,059 Nigerian seafarers had been placed onboard vessels to acquire the required sea-time experience.