Nigerian indigenous shipowners have called on major cargo owners, particularly the Dangote Group, to support domestic fleet development through long-term Contracts of Affreightment (CoAs) covering petroleum products, cement, fertiliser, and other bulk commodities. This call is based on the principle that cargo creates trade, trade supports financing, and predictable cargo contracts enable shipowners to acquire vessels and build sustainable fleets.
Captain Ladi Olubowale, former president of the Nigerian chapter of the African Shipowners Association (ASA) and Group Managing Director/CEO of Seamate Maritime Integrated Services Limited, made the call during a Public-Private Dialogue with CEOs, organised by the Nigerian Chamber of Shipping in Lagos. The dialogue, themed: “Unlocking Efficiency in the Marine and Blue Economy Value Chain”, brought together maritime industry leaders, cargo owners, terminal operators, and policymakers.
Captain Olubowale argued that Nigeria’s maritime development strategy should focus on creating commercial conditions that make indigenous vessel acquisition bankable, rather than simply discussing vessel ownership. He proposed that cargo owners, such as Dangote Group, allocate portions of their maritime cargo requirements to qualified indigenous shipping companies under structured multi-year CoAs.
According to Captain Olubowale, such arrangements could enable Nigerian shipowners to approach banks, development finance institutions, export credit agencies, leasing companies, and international vessel financiers with identifiable cargo, predictable revenues, and long-term commercial contracts. This would help Nigerian shipowners acquire large vessels and build a sustainable fleet.
Captain Olubowale also drew attention to the continued participation of foreign-controlled vessels in the transportation of Nigerian crude and petroleum cargoes. He noted that large tankers, including Suezmax vessels, regularly call at Nigerian crude terminals, generating significant freight revenues from Nigerian-origin cargo.
The Nigerian shipowners' call for support from major cargo owners comes as the Dangote Group, with its expanding refinery, cement, fertiliser, and industrial operations, generates substantial maritime cargo volumes. This presents an opportunity for the company to become a catalyst for Nigerian fleet development by allocating cargo to indigenous shipowners.
The development of a domestic fleet is crucial for Nigeria's maritime sector, as it would create jobs, increase revenue, and enhance the country's economic growth. The Nigerian shipowners' association and other stakeholders will likely continue to engage with cargo owners and policymakers to push for the implementation of long-term contracts and other supportive measures.
Key points
- Nigerian shipowners urge Dangote Group and other cargo owners to support domestic fleet development through long-term Contracts of Affreightment.
- The development of a domestic fleet is crucial for Nigeria's maritime sector, as it would create jobs, increase revenue, and enhance the country's economic growth.
- Captain Ladi Olubowale proposed that cargo owners allocate portions of their maritime cargo requirements to qualified indigenous shipping companies under structured multi-year CoAs.
