Nigeria is moving ahead with a long-delayed fund that will allow qualified local shipowners to access up to $25 million each to buy vessels.
The Nigeria shipowners fund aims to strengthen local shipping companies and reduce the industry’s dependence on foreign operators.
The government also expects the programme to create thousands of jobs across Nigeria’s maritime sector.
Nigeria shipowners fund offers up to $25m
The money will come from the Cabotage Vessel Financing Fund (CVFF).
Marine and Blue Economy Minister Adegboyega Oyetola said successful applicants could receive up to $25 million to acquire vessels.
Applicants must first pass an assessment and approval process. The financing will also be available at low interest rates.
Nigeria has expanded the number of participating banks from five to 12 to help speed up the process.
Fund moves forward after 20-year delay
Nigeria established the CVFF under the Coastal and Inland Shipping Act of 2003.
The fund was designed to help Nigerian companies buy vessels and increase their role in domestic shipping.
However, access to the money was delayed for about two decades.
That is now changing.
According to figures reported by Punch, the Nigerian Maritime Administration and Safety Agency (NIMASA) has received 92 applications.
Twenty applications have been sent to banks for review. One has already been processed and sent for final approval.
Nigeria wants local firms to compete
Nigeria has one of Africa’s most important maritime industries.
However, foreign operators have historically dominated many coastal and offshore contracts.
The new financing could help Nigerian companies purchase modern vessels and compete for a larger share of that business.
It could also increase activity in shipyards, marine engineering, vessel maintenance and logistics.
More than 30,000 jobs expected
The government estimates that the programme could support more than 30,000 direct and indirect jobs.
Nigeria is also investing in its maritime workforce.
Oyetola said 222 seafarers had received free training, while 333 cadets had graduated.
Another 7,059 seafarers have been placed aboard vessels to gain practical experience.
The government says its wider goal is to build a stronger Nigerian-owned shipping industry and keep more maritime wealth inside the country.