The Federal Government is set to begin disbursing the long-awaited Cabotage Vessel Financing Fund to qualified Nigerian shipowners, with successful applicants eligible to access up to $25 million each.

Minister of Marine and Blue Economy, Adegboyega Oyetola, announced this today, saying the move would strengthen indigenous shipping, reduce foreign dominance in Nigeria's maritime sector and create more than 30,000 direct and indirect jobs.

Oyetola said the government is unlocking the fund more than 20 years after its establishment to address the shortage of affordable, long-term financing for Nigerian shipping companies.

He disclosed that the Nigerian Maritime Administration and Safety Agency had received 92 applications, of which 20 had been forwarded to approved Primary Lending Institutions for assessment. One application has so far been reviewed and forwarded for approval.

According to Oyetola, the financing will enable Nigerian shipowners to acquire modern vessels, expand their fleets and compete for coastal and offshore contracts currently dominated by foreign operators.

He added that the expected growth in indigenous shipping would also stimulate activity in shipyards, marine engineering, vessel maintenance and maritime logistics.