The Federal Government is set to begin disbursing the long-delayed Cabotage Vessel Financing Fund to qualified Nigerian shipowners, with each successful applicant eligible for up to $25 million in financing.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, said the move was aimed at strengthening indigenous participation in Nigeria’s maritime industry and reducing the dominance of foreign operators.

Oyetola disclosed this on Monday, saying the government was finally moving to unlock the fund more than two decades after it was established under the Coastal and Inland Shipping (Cabotage) Act of 2003.

According to him, the financing would enable Nigerian shipowners to acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign operators.

The minister said access to affordable, long-term financing had remained one of the major obstacles limiting the growth of Nigerian-owned shipping companies.

He directed the Nigerian Maritime Administration and Safety Agency to accelerate the disbursement process in collaboration with 12 approved Primary Lending Institutions.

Oyetola said NIMASA had so far received 92 applications from prospective beneficiaries. Of these, 20 had been forwarded to the approved lending institutions, while one application had been reviewed and forwarded for approval.

He added that the government had increased the number of participating banks from five to 12 and launched an online application portal to make the process more transparent and accessible.

Beyond vessel acquisition, Oyetola said the government expected the fund to stimulate activities across shipbuilding, marine engineering, vessel maintenance and maritime logistics.

He projected that the initiative could generate more than 30,000 direct and indirect jobs while strengthening Nigeria’s ship-owning and shipbuilding ecosystem.

The minister also highlighted efforts to develop the manpower required to support the sector.

He said 222 seafarers had received free professional training, 333 cadets had completed academic training and obtained degrees, while 135 cadets under the Nigerian Seafarers Development Programme had secured Certificates of Competency.

Oyetola further disclosed that 7,059 Nigerian seafarers had been placed onboard vessels to acquire practical sea-time experience.

The CVFF was established to support Nigerian shipping companies in acquiring vessels and developing indigenous capacity. However, its disbursement had remained stalled for more than 20 years before the Federal Government began efforts to revive the scheme in 2026.

The latest development marks a major step in the government’s push to increase Nigerian ownership of vessels and retain a greater share of the economic value generated from activities in the country’s maritime waters.