Nigerian shipowners have called on the Dangote Group and other major cargo owners to give local shipping companies more opportunities to handle their cargo, saying this could help expand the country’s indigenous fleet.
They want companies with large volumes of petroleum products, cement, fertiliser and other bulk goods to sign long-term shipping agreements with qualified Nigerian operators.
The appeal was made by Capt. Ladi Olubowale, former Nigeria Chapter President of the African Shipowners Association and Group Managing Director of Seamate Maritime Integrated Services Limited, at a recent industry dialogue organised by the Nigerian Chamber of Shipping in Lagos.
The event, which focused on improving efficiency within Nigeria’s marine and blue economy, was attended by key industry players, including Dangote Group’s Group Vice President, Oil and Gas, Edwin Devakumar.
Olubowale said the major challenge facing indigenous shipowners was not simply owning vessels but securing enough cargo and reliable contracts to convince financial institutions to fund vessel purchases.
He said Nigeria’s maritime strategy should focus on “creating commercial conditions that make indigenous vessel acquisition bankable.”
“Give credible Nigerian shipowners long-term Contracts of Affreightment, and those contracts become the commercial foundation upon which vessels can be financed, acquired and deployed,” Olubowale said.
He pointed to Dangote’s refinery, cement and fertiliser businesses as major sources of cargo that could be used to strengthen Nigeria’s local shipping capacity.
According to him, assigning part of such cargo to competent Nigerian operators through multi-year agreements would provide the predictable income needed to secure loans and other forms of financing for vessel acquisition.
Olubowale also questioned why foreign-owned vessels continue to earn substantial freight income from the transportation of Nigerian crude, particularly from terminals such as Forcados, Bonny and Escravos.
“There is no structural reason why Nigerian companies should not ultimately own and operate Suezmax tankers and other large commercial vessels. But fleet development must be connected to cargo, finance, technical capability and long-term employment,” he said.
He proposed a model built around four key elements — Cargo, Contract, Finance and Vessel — arguing that each must work together for Nigeria to develop a sustainable indigenous fleet.
While government interventions such as the Cabotage Vessel Financing Fund could support the process, he said the private sector should remain at the centre of fleet development.
“Nigeria’s ambition to build a globally competitive marine and blue economy will require deeper collaboration between cargo owners, indigenous shipowners, banks, investors, ports regulators and government,” he said.
Olubowale further noted that increasing trade within Africa would create greater demand for maritime transportation, urging Nigeria to use its large cargo base to develop local capacity.
“The maritime industry must ultimately be driven by the private sector. If we connect Nigerian cargo to Nigerian maritime capacity, we will not merely acquire ships — we will build a sustainable shipping industry,” he said.