The Federal Government of Nigeria has failed to release the $700 million Cabotage Vessel Financing Fund (CVFF) despite the expiration of its disbursement deadline.
Established to support indigenous shipowners and foster the growth of the nation’s maritime sector, the CVFF has remained dormant for months, causing considerable frustration among industry stakeholders.
The Cabotage Vessel Financing Fund (CVFF) was introduced to support the development of indigenous shipping capacity by assisting Nigerian shipowners in acquiring vessels for domestic coastal trade.
The fund is derived from a 2% surcharge on all cabotage contracts executed by indigenous shipowners in Nigerian waters.
Since its establishment, however, the disbursement process has been delayed multiple times, despite several deadlines set by the Federal Government.
In April 2025, Adegboyega Oyetola, the Minister of Marine and Blue Economy, directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to initiate the disbursement of the fund. However, over nine months after the deadline, the CVFF remains untouched.
Since 2019, the government has failed to release the fund on at least 10 occasions, despite repeated promises from successive administrations. The constant delays have left Nigerian shipowners disillusioned and hindered the development of the country’s maritime industry.
Industry stakeholders are increasingly frustrated by the situation. According to experts, the delay in disbursing the CVFF is responsible for the decline of Nigeria’s indigenous fleet, which has fallen from 24 active vessels in 2005 to fewer than four by 2024.
This has resulted in foreign carriers handling 95% of Nigeria’s cargo, leading to a yearly loss in freight revenue estimated between $6 billion and $8 billion. In addition, more than 4,000 Nigerian seafarers are unemployed due to the lack of opportunities within the domestic fleet.
