Nigeria’s maritime industry is losing an estimated $8 billion in annual freight revenue due to the prolonged delay in disbursing the Cabotage Vessel Financing Fund (CVFF) to indigenous shipowners.
The situation has also left more than 4,000 trained Nigerian seafarers jobless, as the nation’s local shipping capacity continues to deteriorate.
The News Chronicle learned that the Ministry of Marine and Blue Economy, in collaboration with the Nigerian Maritime Administration and Safety Agency (NIMASA), had earlier announced August 2025 as the tentative date for CVFF disbursement.
However, stakeholders say the prolonged inaction is crippling indigenous participation in the maritime sector and expanding Nigeria’s dependence on foreign shipping lines.
At the PortNews Summit and 30th Anniversary celebration held in Apapa, Lagos, industry experts voiced deep concern over the collapse of Nigeria’s once-thriving local fleet.
From 24 active vessels in 2005, the number has dwindled to fewer than four by 2024, leaving foreign vessels to dominate about 95 percent of the country’s cargo transport.
Head of Research at Sea Empowerment and Research Centre (SEREC), Dr. Eugene Nweke, described the situation as a “failure of governance,” noting that despite over 90 percent of Nigeria’s trade being sea-based, local fleet participation remains below five percent.
He revealed that while the CVFF, established in 2003 to support Nigerian shipowners in vessel acquisition, has accumulated over $350 million, not a single major disbursement has been made.
According to Nweke, most trained Nigerian seafarers are either unemployed or forced to seek opportunities abroad due to the absence of a national fleet. This brain drain, he warned, is depleting the country’s maritime manpower base.
President of the African Shipowners Association (ASA), Captain Ladi Olubowale, criticised the government’s failure to release the funds, stating that most local operators cannot meet the 15 percent equity contribution required under the CVFF guidelines.
Similarly, PortNews Publisher, Wale Oni, condemned the continuous withholding of the $800 million fund, describing it as “economically unwise” and counterproductive to national growth.
Meanwhile, Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, urged greater collaboration among African nations to strengthen maritime operations and promote shared development across the continent’s ports.
