The Cabotage Vessel Financing Fund (CVFF) is one of Nigeria’s most strategic financing initiatives designed to empower indigenous shipowners and strengthen the maritime and shipping sector. Administered by the Nigerian Maritime Administration and Safety Agency (NIMASA), the fund supports local vessel acquisition, fleet expansion, and capacity development.
If you are a Nigerian shipowner or maritime investor looking to apply for CVFF, understanding the application process, eligibility requirements, and funding opportunities is crucial.
What is the Cabotage Vessel Financing Fund (CVFF)?
The CVFF is a financing mechanism established under the Cabotage Act of 2003. It pools funds from:
2% surcharge on cabotage contracts,
Tariffs, penalties, and regulatory fees,
Contributions from stakeholders.
Its primary goal is to help Nigerian shipowners acquire vessels, reduce dependence on foreign shipping companies, and boost indigenous participation in coastal and inland shipping.
Benefits of CVFF for Indigenous Shipowners
Access to low-interest loans for vessel acquisition.
Funding for fleet modernisation and expansion.
Boosts competitiveness of Nigerian-owned shipping companies.
Encourages job creation in the maritime industry.
Reduces capital flight by promoting local content in shipping.
Step-by-Step CVFF Application Process
- Confirm Eligibility
Applicants must:
Be a Nigerian citizen or registered shipping company.
Own or manage vessels engaged in cabotage trade (domestic coastal shipping).
Maintain compliance with NIMASA regulations. - Choose a Primary Lending Institution (PLI)
NIMASA works with designated commercial banks known as Primary Lending Institutions (PLIs). Applicants must select an approved bank to process their application. - Submit Application to PLI
The application should include:
Business plan or feasibility study for vessel acquisition.
Financial records and audited statements.
Evidence of compliance with cabotage laws and NIMASA certifications.
Company registration documents with CAC. - PLI Appraisal & Recommendation
The bank reviews the application and determines financial viability. If successful, it forwards its recommendation to NIMASA and the Federal Ministry of Transportation.
- Approval & Loan Disbursement
Upon approval, the CVFF loan is disbursed under a financing ratio of:
CVFF Fund: 50%
Bank/PLI: 35%
Shipowner Equity: 15%
Frequently Asked Questions (FAQ)
- Who can apply for the CVFF?
Only Nigerian citizens and companies engaged in cabotage trade with NIMASA certification are eligible.
- How much financing can I get under the CVFF?
The amount depends on your project scope, business plan, and PLI assessment. Funding is based on the 50-35-15 ratio (CVFF, Bank, Shipowner).
- Is collateral required for CVFF loans?
Yes. The PLI determines collateral requirements, usually linked to the vessel or other company assets.
- How long does the CVFF application take?
Processing time varies but typically involves due diligence by the PLI, NIMASA, and the Ministry of Transportation.
- Can foreign shipping companies apply?
No. The CVFF is strictly for indigenous shipowners to promote local content under the Cabotage Act.
Applying for the Cabotage Vessel Financing Fund can be the game-changer for Nigerian shipowners seeking vessel acquisition financing. By preparing the right documentation, partnering with an approved PLI, and ensuring compliance with NIMASA, you can successfully access the fund and expand your maritime business.
If you’re ready to apply for CVFF funding, start by consulting with an approved PLI and aligning your business strategy with the Cabotage Act requirements.
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