LAGOS — OCT 17, 2026— For the umpteenth time in 20 years, Nigerian shipowners have heard it again: the Cabotage Vessel Financing Fund, CVFF, will be disbursed.
Minister of Marine and Blue Economy, Dr. Adegboyega Oyetola, reaffirmed at the Third Quarter 2026 Citizens’ and Stakeholders’ Engagement in Victoria Island, Lagos, that Federal Government is determined to strengthen indigenous shipping and finally release the fund to qualified applicants.
“To our indigenous shipowners, I wish to reaffirm this Administration’s commitment to the development of indigenous shipping capacity and the effective implementation of the Cabotage Act,” Oyetola said, directing NIMASA to collaborate with approved Primary Lending Institutions, PLIs, to accelerate processing.
He said beyond vessel acquisition, CVFF will support shipbuilding, marine engineering, vessel maintenance, maritime logistics, professional training and local expertise to build competitive domestic industry.
The Danish Ambassador to Nigeria, Jens Ole Bach Hansen, also presented Denmark’s blue economy experience at the event, highlighting partnership and technology transfer opportunities.
*Why The Reaffirmation May Again Fail*
The promise is not new. The CVFF, created under the Coastal and Inland Shipping (Cabotage) Act 2003, is funded by 2% surcharge on cabotage contracts.
Over two decades, the fund has grown to hundreds of millions of dollars, estimated at over $350 million plus Naira component, yet never truly disbursed to shipowners.
Successive Ministers and NIMASA DGs — from 2007, 2012, 2018, 2021, 2023 — all reaffirmed disbursement. Each time, implementation stalled on same fault lines that still threaten Oyetola’s latest pledge:
PLI Bottleneck: Government insists on lending through commercial banks at near-commercial interest rates of 12-15% with heavy collateral, defeating single-digit, long-tenor purpose of CVFF. Banks remain risk-averse to shipping assets.
Shipowner Bankability: Many indigenous operators lack audited financials, technical capacity and corporate governance to pass bank risk assessment, making “qualified applicants” clause a filter that disqualifies many.
Policy Inconsistency and Political Cycle: With administration transitions, new NIMASA leadership often restarts verification, audit and guidelines, resetting clock. With 2027 elections approaching, bureaucracy slows.
Legal and Governance Tussle:
Controversy over who owns CVFF — FG or contributors — and whether it should be managed as intervention fund or commercial loan continues to create litigation risk and caution among PLIs.
Until NIMASA moves from reaffirmation to transparent publication of approved disbursement framework — single-digit interest, clear eligibility list, escrowed fund in Central Bank, and timeline with penalties for defaulting PLIs — stakeholders fear this pledge will join archive of unfulfilled promises.
For now, indigenous fleet remains thin, foreign dominance of coastal trade continues, and CVFF stays in the vault — accruing, but not empowering.
