• Nigeria launched the official application portal for its Cabotage Vessel Financing Fund, reviving a scheme dormant for nearly 20 years.

• The fund earmarks $25 million to help Nigerian companies acquire vessels as the government phases out waivers for foreign ships.

• Authorities aim to expand local operators from domestic cabotage into regional coastal shipping across West Africa.

The Nigerian government last week opened the digital platform allowing shipowners to apply for financing under the Cabotage Vessel Financing Fund (CVFF). Authorities designed the program to promote domestic maritime companies and strengthen local participation in coastal shipping.

Nigeria created the CVFF in 2003, but the fund remained largely inactive for nearly two decades. The mechanism aims to improve access to vessel financing for Nigerian operators, with total subsidies set at $25 million. The launch follows the government’s decision to gradually end exemptions that allowed foreign vessels to operate in cabotage, a segment legally reserved for local companies.

From the domestic market to the regional space

Nigeria represents West Africa’s largest maritime market due to its population of 237.5 million people, the scale of its economy, and the volume of its oil and gas trade. If domestic fleet expansion materializes, Nigerian shipowners could move beyond national cabotage and operate regional coastal routes.

In a sub-region where few countries maintain significant commercial fleets, Nigeria holds the potential to shift from reliance on foreign shipowners to providing maritime services to neighboring states. Local operators could target the transport of petroleum products, bulk cargo, and goods linked to extractive industries.

However, this trajectory depends on effective fund governance, the operational capacity of Nigerian shipowners to deploy financed vessels efficiently, and the availability of skilled technical personnel.

This article was initially published in French by Henoc Dossa

Adapted in English by Ange. J. A. de BERRY QUENUM