KEY POINTS

• Cabotage Vessel Financing Fund disbursement targeted for Q2 2026.
• The fund is to use banks as lenders.
• Cabotage Vessel Financing Fund access tied to compliance.

Nigeria plans to begin disbursing the long-delayed Cabotage Vessel Financing Fund in the second quarter of 2026, as authorities move to unlock financing for indigenous shipping operators after more than two decades of setbacks.

The Nigerian Maritime Administration and Safety Agency said preparations for the rollout have advanced following reforms aimed at improving transparency, enforcement and access to the fund, which was created to strengthen local participation in coastal shipping.

Cabotage Vessel Financing Fund rollout timeline

NIMASA Director-General Dayo Mobereola gave the update at the Nigeria International Energy Summit in Abuja through his representative, Nneka Obianyor, director of reforms coordination and blue economy. Obianyor said the agency would disburse the fund in the coming months, marking the first concrete timeline since its creation.

Her comments followed the recent launch of an application portal by the minister of marine and blue economy, Adegboyega Oyetola, reopening the process for eligible operators. The Cabotage Vessel Financing Fund, established under the Cabotage Act, had accumulated contributions over the years but remained idle due to concerns over governance and fairness.

Obianyor said NIMASA has overhauled the framework guiding disbursement, including the appointment of 12 primary lending institutions such as the Bank of Industry to manage applications and credit assessment. The agency has also deployed a dedicated cabotage portal to support indigenous shipping participation.

She said authorities have sent amendments to the Cabotage Act to the National Assembly to close regulatory gaps and expand eligibility beyond vessel ownership to other qualified Nigerian operators.

Conversations about industry concerns

NIMASA said access to the fund will be tied to compliance, citing the launch of “Operation Zero Tolerance” to enforce cabotage rules among local and foreign operators.

Industry executives remain cautious. AfricEnergy chief executive Bassey Rex said high borrowing costs continue to disadvantage Nigerian operators compared with global peers. He also pointed to multiple taxes and a widening skills gap as structural challenges that could limit the impact of the fund.

Still, maritime officials argue that unlocking the fund could improve fleet capacity, reduce reliance on foreign vessels and support Nigeria’s broader blue economy strategy.