Indigenous shipowners have urged the Dangote Group and other major cargo owners to commit part of their cargo volumes to Nigerian operators through long-term contracts to facilitate the development of a local shipping fleet.
The shipowners said predictable cargo volumes and long-term employment contracts were critical to enabling indigenous operators to secure financing for vessel acquisition and expand their fleets.
A former Nigeria Chapter President of the African Shipowners Association and Group Managing Director of Seamate Maritime Integrated Services Limited, Capt. Ladi Olubowale, made the call at 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’, had industry stakeholders in attendance, including the Group Vice President of Dangote Group (Oil and Gas), Mr Edwin Devakumar, who participated as the guest CEO.
Olubowale said the focus of Nigeria’s maritime strategy should shift from merely discussing vessel ownership to establishing commercial arrangements that would make the acquisition of ships financially viable for local operators.
“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,” he said.
He explained that shipping required substantial capital and that local shipowners would struggle to acquire large vessels without assured cargo volumes and contracts capable of guaranteeing revenue over a long period.
According to him, Dangote is strategically positioned to support the growth of Nigeria’s indigenous shipping capacity, given the substantial maritime cargo generated by its refinery, cement and fertiliser businesses.
He said allocating part of the group’s cargo requirements to qualified Nigerian shipowners through multi-year Contracts of Affreightment would provide operators with the predictable income needed to approach commercial banks, development finance institutions, export credit agencies and international financiers.
Olubowale also expressed concern over the large presence of foreign-controlled vessels involved in transporting Nigerian crude from terminals including Forcados, Bonny and Escravos, noting that significant freight earnings from the country’s cargo were being taken by foreign operators.
He said Nigeria needed to ensure that the transportation of its cargo contributed more directly to the development of domestic assets, employment and technical expertise.
“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.
Olubowale proposed a four-pillar approach built around Cargo, Contract, Finance and Vessel. Under the model, cargo owners would provide assured volumes, long-term contracts would make the business bankable, financiers would support vessel acquisition, while indigenous operators would provide the vessels and maritime services.
He said the proposed approach would complement existing government initiatives, including the Cabotage Vessel Financing Fund, rather than replace them.
The maritime executive said government should concentrate on creating an enabling regulatory and business environment, while private-sector players should drive investment and commercial activity in the industry.
“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.
He added that the expansion of intra-African trade under the African Continental Free Trade Area would increase the importance of maritime transportation, making it necessary for Nigeria to utilise its large cargo base to develop a sustainable indigenous shipping industry.
“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.
