The Federal Government has announced plans to provide qualified Nigerian shipowners with up to $25m each under the long-delayed Cabotage Vessel Financing Fund.

Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this on Monday, saying the disbursement of the fund would soon commence, more than 20 years after it was established.

Oyetola said the financing would help Nigerian shipowners acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign operators.

He said each successful applicant would be able to access up to $25m at very low interest rates, subject to the applicable assessment and approval process.

The minister said the government was determined to ensure that more Nigerian-owned vessels operate on the country’s waters and that more value generated from Nigeria’s maritime economy remains in the country.

Oyetola disclosed that NIMASA had received 92 applications, with 20 forwarded to approved Primary Lending Institutions and one already reviewed and forwarded for approval.

He said the number of approved banks participating in the scheme had been increased from five to 12, while a CVFF application portal had been launched to make the process more transparent and accessible.

The minister said the disbursement could create more than 30,000 direct and indirect jobs by stimulating activity in shipyards, marine engineering, vessel maintenance, maritime logistics and other supporting industries.

He added that the fund was part of the Tinubu administration’s efforts to strengthen Nigeria’s Blue Economy and increase indigenous participation in the maritime sector.

Oyetola also disclosed that 222 seafarers had received free professional training, 333 cadets had completed academic training and obtained degrees, while 135 Nigerian Seafarers Development Programme cadets had obtained Certificates of Competency.

The CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 to support Nigerian shipping companies in acquiring vessels and developing indigenous capacity. Its disbursement has remained delayed for more than two decades.