Government says CVFF vessel loans have started; experts say banks and NIMASA still slow

The Federal Government says it has started paying out the Cabotage Vessel Financing Fund (CVFF) to Nigerian shipowners, a pool meant to help them buy ships and compete with foreign operators.

Minister of Marine and Blue Economy Adegboyega Oyetola said he had directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to begin the disbursement, according to a report by the News Agency of Nigeria carried by Nairametrics.

He spoke on Thursday in Lagos at the annual summit of the Shipping Correspondents Association of Nigeria (SCAN), where he was represented by Anastasia Ogbonna, Director of Media at the ministry.

Oyetola said NIMASA had received 92 applications, with 20 sent on to lending institutions and one reviewed and forwarded for final approval. He also said the number of approved Primary Lending Institutions would rise from five to 12, and that a transparent application portal would be launched in January 2026.

He projected that the fund could create more than 30,000 direct and indirect jobs in shipyards, marine engineering and maritime logistics. The government is also looking at a national shipping line run with private partners, he said.

Why it matters to ordinary Nigerians

Shipping moves most of what Nigeria imports and exports, from fuel to food. If more of that trade is carried by Nigerian-owned vessels, the government argues, more of the money stays home and more jobs are created onshore.

The fund has a long, stop-start history. It was set up more than two decades ago but shipowners could not access it. In December 2019, the government said disbursement would begin in January 2020 after then-President Muhammadu Buhari approved it, when the fund was reported at ₦44.64 billion.

In May 2023, the House of Representatives ordered the rollout suspended over missing records of the fund's balance and beneficiaries. A month later, the House approved disbursement of what was then estimated at $360 million. By April 2025, NIMASA put the fund at about $700 million. President Bola Tinubu approved the current disbursement in September, Nairametrics reported.

Experts say the delays are not over

At the same summit, shipping experts blamed NIMASA's weak regulatory framework and banks' strict conditions for the years of delay, ThisDay and Independent reported.

Maritime lawyer and former Nigerian Bar Association president Olisa Agbakoba said regulatory uncertainty raises investment costs and scares off long-term lenders. He called for clearer rules, defined roles between NIMASA and other agencies, and a predictable waiver system. He was represented at the event by Akunne Nzube, according to Independent.

Agbakoba also said the fund cannot carry fleet development alone. "Where is the cargo and commercial opportunity that will make Nigerian vessels financeable?" he asked, arguing that public money should pull in private capital rather than replace it.

Former NIMASA Director-General Temisan Omatseye was blunter about the banks. "The banks in Nigeria do not have the capacity to finance shipping," he said, noting that one LNG tanker costs about $250 million and needs repayment over at least 15 years.

United Bank for Africa's Apapa regional manager, Nelson Edoye, said the gap needs partnership between banks, regulators and shipowners, and that UBA is ready to support local operators with tailored financing.

What happens next: The government says the portal and the expanded list of lending banks are due in January 2026. How quickly shipowners actually get money will depend on how those banks assess their applications.