Indigenous shipowners in Nigeria have urged major cargo owners, including the Dangote Group, to support local fleet development by offering long-term Contracts of Affreightment for bulk cargoes such as petroleum products, cement, and fertiliser. This call was made by Capt. Ladi Olubowale, a former Nigeria Chapter President of the African Shipowners Association and Group Managing Director of Seamate Maritime Integrated Services Limited. He emphasized that predictable cargo contracts are crucial for vessel financing and acquisition.
The call was made at a Public-Private Dialogue with CEOs organised by the Nigerian Chamber of Shipping in Lagos, themed ‘Unlocking efficiency in the marine and blue economy value chain’. The dialogue brought together industry stakeholders, including Mr Edwin Devakumar, Group Vice President of Dangote Group (Oil and Gas), as a guest CEO. Olubowale explained that Nigeria’s maritime strategy must move beyond debates about vessel ownership to creating commercial conditions that make indigenous vessel acquisition bankable.
Olubowale stressed that shipping is a capital-intensive industry, and Nigerian owners cannot sustainably acquire large vessels without guaranteed cargo volumes and bankable employment contracts. He noted that Dangote, with its refinery, cement, and fertiliser operations generating huge maritime cargo volumes, is well placed to catalyse local fleet growth by allocating portions of its cargo requirements to qualified indigenous operators under multi-year Contracts of Affreightment.
Such contracts, Olubowale argued, would enable Nigerian shipowners to approach banks, development finance institutions, export credit agencies, and international financiers with identifiable cargo and predictable revenue. He also raised concern over the dominance of foreign-controlled vessels in lifting Nigerian crude from terminals at Forcados, Bonny, and Escravos, earning huge freight revenues from Nigerian cargo.
Olubowale advocated a four-pillar model for fleet development — Cargo, Contract, Finance, and Vessel — where cargo owners provide volumes, CoAs create bankable contracts, financiers fund vessel acquisition, and Nigerian owners provide vessels and services. This model, he noted, would complement, not replace, government interventions like the Cabotage Vessel Financing Fund.
Olubowale emphasized that the government’s role should be that of enabler, regulator, and facilitator, while the private sector drives the commercial engine. He added that 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.
As intra-African trade grows under the African Continental Free Trade Area, maritime transport will become even more critical, and Nigeria must deliberately use its huge cargo base to build a sustainable indigenous shipping industry. Olubowale concluded that if Nigerian cargo is connected to Nigerian maritime capacity, it will not merely acquire ships — it will build a sustainable shipping industry.
Key points
- Nigerian shipowners urge Dangote Group to support local fleet development with long-term contracts for bulk cargoes.
- A four-pillar model for fleet development is proposed, including Cargo, Contract, Finance, and Vessel.
- Government and private sector collaboration is necessary to build a globally competitive marine and blue economy.
