Nigerian shipping experts have expressed strong reservations about the Federal Government’s continued delay in disbursing the Cabotage Vessel Financing Fund (CVFF), as difficult regulatory guidelines and stringent conditions by the Primary Lending Institutions (PLIs) stall vessel acquisition loans.

Speaking at the yearly summit of the Shipping Correspondents Association of Nigeria (SCAN), they said that regulatory uncertainty continues to drive up investment costs, severely discouraging long-term financial commitments needed to build a robust domestic maritime fleet.

This comes as the Minister of Marine and Blue Economy, Adegboyega Oyetola, directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to fast-track the disbursement of the CVFF, believed to be about $360 million, to qualified indigenous shipowners to strengthen local shipping capacity and improve Nigeria’s maritime competitiveness.

Oyetola, who spoke at the 2026 Annual Summit of the Shipping Correspondents’ Association of Nigeria (SCAN) in Lagos yesterday, restated the Federal Government’s commitment to moving the vessel acquisition fund from prolonged delays to operators’ practical acquisition of vessels, expansion of their fleets and creation of employment opportunities.

The minister said the government recognised the challenges of indigenous shipowners in securing long-term financing at commercially sustainable rates, with high borrowing costs, stringent collateral requirements and lengthy repayment periods placing the operators at a competitive disadvantage.

However, addressing the theme of the summit, “Low-Risk Capital for Indigenous Shipowners: Overcoming Regulatory and Financial Bottlenecks,” Oyetola, represented by the ministry’s Director of Press, Mrs Anastasia Ogbonna, said he has “since directed the NIMASA to commence the process of disbursing the fund to qualified beneficiaries.

Nevertheless, stakeholders have slammed the sector’s regulatory uncertainties, with the keynote speaker and former President of the Nigerian Bar Association, Dr Olisa Agbakoba, saying that it increases investment costs and discourages long-term financing.