Nigeria’s maritime sector is witnessing a surge in activities as over 100 indigenous shipowners scramble to secure a share of the $700 million Cabotage Vessel Financing Fund (CVFF).

The race for the fund heightened soon after the CVFF application portal came alive.

Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, in January 2026, officially launched and unveiled the Cabotage Vessel Financing Fund (CVFF) Application Portal, five months after the Nigerian Maritime Administration and Safety Agency (NIMASA) missed the August 2025 deadline it set for the disbursement of the fund.

The launch of the CVFF portal marked a historic step in Nigeria’s long-awaited journey to operationalise structured financing for indigenous ship ownership.

The fund which is designed to support the growth of Nigeria’s maritime industry, has attracted widespread interest from shipowners eager to tap into the financing opportunity.

The CVFF was established by the Nigerian Maritime Administration and Safety Agency (NIMASA) to provide financial support to indigenous shipowners, enabling them to acquire vessels and compete favorably in the global maritime market. With the fund’s disbursement imminent, the excitement among shipowners is palpable.

Investigations by our correspondent revealed that indigenous shipowners are jostling for a share of the fund.

Sources at NIMASA’s Headquarters in Lagos revealed that 100 or more indigenous shipowners have applied for the fund, with more still trying to meet the application criteria.

The sources further revealed that the fund may not be enough to go around all applicants at once, and that disbursement may be done on a first-come, first-served basis.

NIMASA sources are optimistic about the disbursement of the fund, which is specifically designed to boost local participation in the Cabotage trade.

The Cabotage trade is a significant business opportunity, with over 4000 vessels passing through Nigerian waters daily.

According to the sources, NIMASA is also on the lookout for foreigners trying to use Nigerians as fronts to participate in the Cabotage trade.

“The fund may not go round at a go. I think it will be rotated as time goes on. I think that it’s going to be on the basis of first come first serve. The moment an applicant meet with the requirements, he or she would be given the green light,” the source said.

Presently, industry stakeholders have hailed the CVFF as a game-changer for Nigeria’s maritime sector, which has long been dominated by foreign operators.

“This fund is a welcome development for indigenous shipowners, who have struggled to access financing for vessel acquisition,” said Sonny Eja, President Shipowners Association of Nigeria

Also speaking, Pioneer President of Shipowners Association of Nigeria (SOAN) and a Nigerian maritime industry icon, Chief Greg Ogbeifun, in a chat with our correspondent disclosed that his company has already applied for the fund.

Ogbeifun, an entrepreneur and the CEO of Starzs Investments Company Limited, a marine logistics company that owns and operates vessels, stated that his company had indeed applied for the fund and that he awaits further clarification from the Government.

He noted that while the CVFF fund, when disbursed, would galvanize the nation’s maritime sector, he is in doubt as to the ability of some indigenous ship owners to meet up with the requirements.

He said: “For example, the requirement is five per cent for the maximum amount which is $25,000. The five percent will be put on the table by the applicant before he can be considered as eligible. Without casting aspersions on others, how many shipowners will be able to meet that requirement?

“In any case, this is the first time since the establishment of the CVFF fund that the government is seen as being sincere in its approach,” he added.

Speaking on clause in the CVFF Act which stipulates that applicants’ vessels must be built in-country to actually end capital flight, he explained that there is a five-year waver in the clause that also allows foreign built vessels from participating.

“I don’t know of any shipbuilding facility in Nigeria that has the capacity to build ships. Yes, the Nigerian Navy Dockyard Limited has built naval ships, but I don’t know if it has built any commercial vessel,” he added

The President of the Nigerian Chamber of Shipping, Alhaji Aminu Umar, has expressed optimism about the impending disbursement of the Cabotage Vessel Financing Fund (CVFF).

According to Umar, many Nigerian shipowners have the capacity to access the fund, which will provide a significant boost to the country’s maritime industry.

However, Umar noted that the fund is limited and not all applicants will be granted access initially.

He explained that the fund will be rotational, allowing some shipowners to access it this year while others will have to wait until subsequent years. The repayment period for the loan is up to 8 years.

The President of the Nigerian Chamber of Shipping commended the government’s efforts, stating that the disbursement of the CVFF represents a significant milestone in the development of the country’s maritime industry.

He expressed confidence in the ability of the Minister and the Director-General of NIMASA to ensure the successful implementation of the fund.

Umar concluded that the disbursement of the CVFF marks a new era for Nigeria’s maritime industry, one that promises to bring significant benefits to shipowners, the economy, and the country as a whole.

“Since the maximum period of repayment of the loan is 8-years. Some will access it this year while others will access the following year and it goes on for a period of five years.

“By the time disbursement starts it will also help to energize the shipbuilding sector. The more we get the involvement of local ships, the more shipbuilding facilities will open up in Nigeria.

“I think this is the highest point the government has gone since the establishment of the CVFF. It will be a lot of investment while more jobs will be created. Taxes will be paid and this will mean more money for the government.

“I have met with the Minister and he is eager for the disbursement of the fund. I have also spoken to the Director General of the NIMASA on the issue and he is also excited about the whole thing,” he added.

He stated that this is the first time a better modality for disbursement has been emplaced since the creation of CVFF.

Maritime Lawyer and a former President of the Nigerian Bar Association (NBA), Olisa Agbakoba (SAN), stated that the nation’s maritime sector if well galvanized could unlock up to N70 trillion annually from the maritime and blue economy.

He said the amount can be achieved through decisive policy, institutional, and operational reforms.

The renowned Lawyer made this assertion against the background of frequent policy summersault on the part of government.

Also speaking, Dr Eugene Nweke, founder Sea Sea Empowerment and Research Center (SEREC), observes that the National Policy on Marine and Blue Economy (2025–2034) already provides a comprehensive reform framework covering port modernization, inland waterways development, cabotage enforcement, maritime security, local content deepening, and technology adoption.

He noted that the central challenge, therefore, lies not in policy absence but in coherent, coordinated, and accountable implementation.

The renewed optimism comes against the backdrop of repeated, unfulfilled promises dating back to 2019.

Former Minister of Transportation, Rotimi Amaechi, announced presidential approval for CVFF disbursement in December 2019 under then-President Muhammadu Buhari, but funds were never released.

Subsequent assurances by former NIMASA Director-General Bashir Jamoh in 2021 and 2022 also failed to materialise.

Under President Bola Ahmed Tinubu, Oyetola inherited the process in 2023 and repeatedly pledged fast-tracked disbursement. A March 2025 deadline was missed, leaving shipowners frustrated.

However, the January 2026 activation of the CVFF portal has rekindled hope that the long-awaited fund may finally move from promise to reality.

For many indigenous shipowners, the coming months will determine whether the $700 million facility becomes the catalyst that reshapes Nigeria’s maritime landscape—or another chapter in a protracted history of deferred expectations. (Daily Trust)