Nigerian Shipowners Struggle for $700M Vessel Financing

Indigenous shipowners in Nigeria are struggling to access the $700 million Cabotage Vessel Financing Fund (CVFF) due to a financing impasse. Banks are unwilling to lend against ships without existing cargo contracts, creating a chicken-and-egg problem.

Sola Adewunmi, president of the Nigerian Shipowners Association, emphasized that without secured cargo, shipowners risk perpetual debt and asset loss. Since the fund's application opened in January, 92 applications have been submitted to the Nigerian Maritime Administration and Safety Agency (NIMASA), but only 20 reached Primary Lending Institutions (PLIs), with just one approved by the Minister of Marine and Blue Economy.

Anokwuru Mike from Zenith Bank stated that banks require a clear commercial purpose backed by a contract for vessel financing. Olisa Agbakoba noted that many applicants fail to secure cargo commitments, despite a reported 12.3% increase in total cargo throughput by the Nigerian Ports Authority in the second quarter of 2026.