The Federal Government has approved the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF), a move expected to provide financial support for Nigerian-owned vessels and strengthen the country’s maritime industry.
President Bola Ahmed Tinubu approved the release of the fund after more than two decades of delays surrounding its utilisation. The government says the initiative is aimed at increasing Nigerian participation in the shipping industry, creating jobs and reducing the dominance of foreign operators in Nigeria’s maritime space.
The Cabotage Act, introduced in 2003, was designed to reserve certain aspects of Nigeria’s coastal and inland shipping activities for Nigerian operators. However, despite deductions from shipping activities accumulating over the years, the financing scheme had faced prolonged delays in disbursement.
The latest approval is therefore being viewed as a significant development for indigenous shipowners and maritime businesses that have struggled to access affordable financing for vessel acquisition and expansion.
The fund is expected to support the acquisition, construction and maintenance of vessels, helping Nigerian operators increase their capacity to participate in activities such as coastal transportation, offshore support services and other maritime operations.
The Federal Government believes unlocking the fund could also stimulate investment across the wider maritime value chain, including shipbuilding, repairs, logistics and marine services.
For Nigeria, the move comes as the government continues efforts to strengthen local industries, create employment and retain more economic value within the country.
The implementation and actual disbursement of the fund will now be closely watched by maritime operators and industry stakeholders, who have waited for years for the scheme to become operational.
