NIMASA to Commence Cabotage Fund Disbursement in Q2 2026

The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced that the long-awaited Cabotage Vessel Financing Fund (CVFF) will be disbursed in the coming months, with implementation expected to commence in the second quarter of 2026.

The Director General of NIMASA, Dr Dayo Mobereola, made this known through the Director of Reforms Coordination and Blue Economy, Mrs Nneka Obianyor, during a panel session at the 9th Nigeria International Energy Summit (NIES) held recently in Abuja.

Obianyor’s disclosure followed the recent launch of the CVFF application portal by the Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, marking a major milestone after more than two decades of delays in operationalising the fund.

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She explained that while the Cabotage Fund had existed for years, concerns around transparency and equitable access stalled its implementation. To address these issues, NIMASA reviewed and strengthened the disbursement guidelines and appointed 12 Primary Lending Institutions (PLIs), including the Bank of Industry (BoI), to enhance credibility, transparency and accessibility for indigenous operators.

According to her, the agency also introduced a dedicated cabotage portal aimed at deepening indigenous participation and boosting local shipping capacity. In addition, NIMASA has forwarded proposed amendments to the National Assembly to close gaps in the Cabotage Act and expand access to the fund beyond vessel ownership to other qualified indigenous operators.

On regulatory enforcement, Obianyor disclosed that NIMASA recently launched “Operation Zero Tolerance” to ensure strict compliance with cabotage regulations by both local and foreign operators. She stressed that only operators who fully comply with cabotage laws would be eligible to benefit from the CVFF.

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Despite the development, industry stakeholders identified lingering challenges within the sector. Chief Executive Officer of AfricEnergy, Engr. Bassey Rex said access to affordable financing remains a major hurdle for Nigerian shipowners, noting that local operators face significantly higher borrowing costs than their international counterparts.

He also pointed to multiple taxation and a growing skills gap as additional constraints limiting the growth and competitiveness of indigenous shipping operators.

The planned disbursement of the CVFF is widely seen as a critical step toward strengthening Nigeria’s maritime capacity, enhancing indigenous participation and reducing reliance on foreign vessels in coastal and inland shipping operations.