FG Finally Unlocks CVFF after 23 Years, Opens Portal for $23m Shipowners’ Funding
- Nigeria's CVFF portal opens, offering up to $25 million for indigenous shipowners' vessel acquisition
- Minister Oyetola emphasises sustainable impact and local competitiveness in maritime sector
- New digital framework ensures transparency and faster loan disbursement for applicants
Twenty-three years after its creation, the federal government has finally opened the application portal for the Cabotage Vessel Financing Fund (CVFF), clearing the path for indigenous shipowners to access long-awaited funding of up to $25 million each for vessel acquisition and maritime asset development.
The move is expected to mark a turning point for Nigeria’s shipping industry, which has struggled for years with ageing, unserviceable vessels and limited access to long-term capital.
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These constraints have largely shut local operators out of crude oil lifting and other high-value maritime contracts, leaving foreign firms to dominate the sector and draining the economy of billions of dollars annually.
Long-delayed CVFF intervention takes off
With the launch of the digital CVFF portal, applications will now be processed within 70 to 80 days.
Approved loans will attract a single-digit interest rate of 6.5 per cent and be repayable over an eight-year tenor, terms designed to ease financing pressure and strengthen local shipping capacity.
Speaking at the launch, the Minister of Marine and Blue Economy, Adegboyega Oyetola, described the CVFF as a revolving fund meant to deliver sustainable impact.
He said beneficiaries are expected to repay their loans promptly to ensure the fund remains available to future generations of Nigerian maritime entrepreneurs.
According to the minister, the intervention is aimed squarely at reducing foreign dominance in coastal and inland shipping while building a competitive indigenous fleet that can participate meaningfully in Nigeria’s maritime value chain.
Digital framework to end past CVFF abuses
The portal, managed by the Nigerian Maritime Administration and Safety Agency (NIMASA), allows eligible Nigerian shipowners to submit applications online under a transparent, rules-based framework.
Oyetola said the digital structure was designed to eliminate arbitrariness, opacity and administrative weaknesses that undermined similar intervention funds in the past.
He added that the Ministry, in collaboration with NIMASA, the Federal Ministry of Finance, the Central Bank of Nigeria and other stakeholders, is aligning the CVFF framework with international best practices.
Loan terms and industry relief
NIMASA Director-General, Dayo Mobereola, said the 6.5 per cent interest rate was agreed after extensive consultations with the agency’s financial consultant and Primary Lending Institutions (PLIs).
The rate, he noted, reflects government’s commitment to reducing the financial burden on indigenous shipowners.
He described shipping as a capital-intensive industry that requires patient, long-term funding, explaining that the eight-year repayment window was structured to give operators time to stabilise operations, generate revenue and meet obligations without undue pressure.
Mobereola also disclosed that NIMASA has established a dedicated CVFF unit to manage applications, coordinate with financial institutions and ensure strict compliance with eligibility and risk management requirements.
Clear timelines, faster disbursement
Presenting the disbursement framework, CVFF Financial Consultant Buhari Yusuf said fund disbursement would commence within weeks, with timelines clearly defined.
He explained that the application and structuring phase through PLIs is capped at 30 days, while NIMASA’s internal review and issuance of an eligibility certificate will take about seven days.
Final ministerial approval is expected within 30 days, excluding time spent by applicants meeting pre-disbursement conditions.
Once conditions are fulfilled, NIMASA will release its portion of the funds within 72 hours, after which PLIs are expected to immediately disburse loans to beneficiaries.
Banks, eligibility and expectations
According to a report by Daily Sun, applicants are required to submit bankable, transaction-based proposals backed by feasibility studies and equity contributions.
Twelve financial institutions have been pre-qualified for the programme, including Zenith Bank, UBA, Union Bank, First Bank, Stanbic IBTC, Fidelity Bank, Jaiz Bank, Taj Bank, SunTrust Bank, Lotus Bank, Optimus Bank and the Bank of Industry.
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For indigenous shipowners, the opening of the CVFF portal signals the end of a 23-year wait and the beginning of a new chapter for Nigeria’s maritime industry.
Reps approve disbursement of $700m Cabotage Fund
Legit.ng earlier reported that The House Representatives have approved the disbursement of the $700 million Cabotage vessel fund. .
The Coastal and Inland Shipping (Cabotage) Act of 2003 established the fund to boost the development and growth of indigenous ship purchase capacity by providing financial assistance to Nigerian operators in the domestic shipping business.
Last month, the House asked the Nigerian Maritime Administration and Safety Agency (NIMASA) to stop the planned fund disbursement to individuals and companies.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
