Nigeria Directs Faster Cabotage Fund Disbursement

The Nigerian government is directing maritime agencies and lenders to expedite the disbursement of the Cabotage Vessel Financing Fund (CVFF), a program established over two decades ago to support indigenous shipowners. The move aims to end prolonged delays that have hindered local operators from accessing crucial low-cost financing for vessel acquisition and fleet expansion. Minister of Marine and Blue Economy, Adegboyega Oyetola, issued the directive on Sunday, September 6, 2026, instructing the Nigerian Maritime Administration and Safety Agency (NIMASA) and 12 approved Primary Lending Institutions (PLIs) to accelerate the processing and release of funds. This initiative follows President Bola Tinubu's authorization to address persistent financing challenges within the maritime sector. The CVFF, created under Nigeria's 2003 Cabotage Act, has accumulated substantial funds over more than 20 years but has remained largely inaccessible to shipowners. This bottleneck has constrained indigenous capacity in the capital-intensive shipping industry, forcing local operators to rely on expensive commercial loans and limiting their ability to compete effectively with foreign vessel operators.