An Applicant’s Guide: Operationalisation of the Cabotage Vessel Financing Fund

In a bid to harness the full potential of the Nigerian maritime industry, the Federal Government of Nigeria (the “FGN”) has made and continues to make interventions that are expected to awaken and create a sustainable indigenous maritime sector. One of such interventions is the Cabotage Vessel Financing Fund (“CVFF” or the “Fund”).

The CVFF, however, is not a new initiative of the FGN. In fact, the CVFF was established under the Coastal and Inland Shipping (Cabotage) Act of 2003 (the “Cabotage Act”) and the Cabotage Vessel Financing Fund Guidelines 2006 (the “CVFF Guidelines”)  with the aim of empowering indigenous ship owners to compete in the international market, boost local content in the maritime sector, and ultimately, create a financial foundation for indigenous ship acquisition transactions. It is, however, positive news that the FGN, after over two (2) decades, has taken decisive steps to activate and disburse the Fund. In April 2025, the Minister of Marine and Blue Economy, Mr. Adegboyega Oyetola (the “Minister”), directed the Nigerian Maritime Administration and Safety Agency (“NIMASA”) to commence the disbursement process. 

This article provides an overview of the CVFF operationalisation, the disbursement flow process, the checklist of documents required for applicants, as well as highlights of the key provisions of the indicative term sheet (the “Term Sheet”) that will govern CVFF transactions. Ultimately, the article aims to provide a useful guide for intending applicants seeking to access the Fund.