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[BUSINESS] · Nigeria · 8 sources

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Nigeria approves $700m maritime fund disbursement

President Bola Tinubu has authorized the disbursement of the $700 million Cabotage Vessel Financing Fund (CVFF), aimed at boosting Nigeria’s indigenous maritime capacity. Minister of Marine and Blue Economy, Adegboyega Oyetola, has directed the Nigeria Maritime Administration and Safety Agency (NIMASA) and 12 Primary Lending Institutions to accelerate the loan processing to end over two decades of administrative delays.

NIMASA has received 92 funding applications, with 20 already submitted to lending institutions. Currently, only one application has been reviewed and forwarded for final approval. The fund, established under the 2003 Cabotage Act, provides low-interest, long-term financing for vessel acquisition, allowing Nigerian shipowners to compete for coastal shipping contracts and reduce reliance on foreign vessels.

Under the financing structure, eligible fully Nigerian-owned operators can apply for up to $25 million. Shipowners contribute 15 percent of project costs as equity, NIMASA provides 50 percent, and lending institutions finance the remaining 35 percent. The initiative is projected to create more than 30,000 direct and indirect jobs in sectors such as marine engineering and maritime logistics.

Entities

Adegboyega Oyetola · Bola Tinubu · Cabotage Vessel Financing Fund · Nigeria · Nigeria Maritime Administration and Safety Agency

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