FG authorizes disbursement of $400m Cabotage Fund

Minister of Marine and Blue Economy Adegboyega Oyetola, has directed the disbursement of the Cabotage Vessel Financing Fund (CVFF) estimated at over $400 million. The minister gave the directive to the Nigerian Maritime Administration and Safety Agency (NIMASA). The minister said the commencement of disbursement of the CVFF, would be in line with the intentional best practices and facilitate the achievement of economic agenda of President Bola Tinubu. “This is not just about disbursing funds. It’s about rewriting a chapter in our maritime history. For over 20 years, the CVFF remained a dormant promise. “Today, we are bringing it to life, deliberately, transparently and strategically.
“We are not merely funding vessels; we are investing in a future where Nigerian shipping companies can stand shoulder-to-shoulder with their international counterparts. This is a turning point, one that affirms our commitment to local content, economic resilience, and maritime sovereignty. We are doing what should have been done years ago—because our vision is clear. A strong indigenous fleet is not just a matter of pride; it is a strategic national asset. Through this intervention, we will be securing jobs, strengthening our economy, and redefining our place in the global maritime economy,” Oyetola said. The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to empower indigenous shipping companies financially to acquire new vessels and compete favourably with their foreign counterparts.
Under the fund, each eligible shipper could access up to $25 million at competitive interest rates to acquire vessels. The Fund, has however, remained unutilized for more than 20 years due to the failure of successive governments to commence its disbursement.