For years, indigenous shipowners in Nigeria have anticipated what many regard as the maritime sector’s long-awaited “lifeline” — the Cabotage Vessel Financing Fund. Created under the Coastal and Inland Shipping Act of 2003, the fund was designed to empower Nigerian operators with access to financing for vessel acquisition and fleet expansion. However, more than two decades after it was created, the fund has remained largely inaccessible despite several assurances from successive governments.

In a bid to give succour to shipowners, the Federal Government unveiled the Cabotage Vessel Financing Fund application portal in January 2026, which made many stakeholders believe the long delay had finally come to an end.

The launch was presented as a turning point for Indigenous shipping development, transparency, and economic empowerment within the maritime industry.Under the arrangement, beneficiaries are expected to provide a 15 per cent equity contribution, while Primary Lending Institutions would contribute 35 per cent financing, with the Nigerian Maritime Administration and Safety Agency providing the remaining 50 per cent from the Cabotage Fund. The loans were projected at a single-digit interest rate of 6.5 per cent with an eight-year repayment tenor.

While qualified applicants may access funding support of up to $25m, subject to due diligence, bankability assessment, and regulatory compliance requirements, the proposed facility tenure is approximately eight years at a projected single-digit interest rate estimated at 6.5 per cent.

NIMASA has established a dedicated CVFF implementation structure, including compliance and monitoring mechanisms aimed at ensuring transparency and preventing abuse of the scheme.

For indigenous shipowners struggling with ageing fleets, rising operational costs, foreign competition, and limited access to commercial loans, the announcement appeared to signal hope.

Operators applauded the move. Many believed the digital application process will finally eliminate the bottlenecks, political interference, and bureaucratic delays that had plagued the fund for years.

At the unveiling ceremony in Lagos in January, the Minister of Marine and Blue Economy, Adegboyega Oyetola, described the launch of the portal as a strategic step towards repositioning Nigeria’s maritime sector and strengthening indigenous participation in coastal trade.

A few months after that unveiling, it was reported that NIMASA has started receiving applications for interested shipowners. In April, The PUNCH reported that the Director-General of the Nigerian Maritime Administration and Safety Agency, Dr Dayo Mobereola, announced that the agency had received more than 60 applications for the Cabotage Vessel Financing Fund since the portal opened in January.

Mobereola assured stakeholders that the disbursement process would be transparent and strictly monitored