Stakeholders Call for Development to Unlock Efficiency in Nigeria’s Shipping Sector

Nigerian shipping industry stakeholders have called for development of the country's shipping value chain to unlock efficiency, according to the keynote address by Edwin Devakumar, Group Vice President of Dangote Industries Limited. Devakumar warned that if local players do not capitalize on Nigeria's growing shipping traffic, foreign competitors will seize the opportunity and reap the economic benefits.

This call came during the Member’s Evening of the Nigeria Chamber of Shipping (NCS) themed "A Public-Private Dialogue with CEOs: Unlocking Efficiency in the Marine and Blue Economy Value Chain." Dangote Industries Limited plans to apply for the Cabotage Vessel Financing Fund (CVFF), a loan facility aimed at providing funding for vessel acquisitions.

Devakumar stressed that vessel acquisition should be accompanied by a robust shipping business value-chain to retain economic value locally. The president of the NCS, Aminu Umar, highlighted that the main challenge for ship owners is access to capital. He emphasized that acquiring large vessels, such as those required by the Dangote Refinery for crude oil import, is prohibitively expensive.

Umar also noted that even with the CVFF, the limit of $25 million per ticket makes it difficult for ship owners to acquire such large vessels. Lastly, founding president of the Nigerian Chamber of Shipping, Dr. Olisa Agbakoba, underscored the government's role in creating the environment for investors and generating funds for the shipping industry.

He stressed that collaboration between cargo and vessel ownership is crucial to avoid becoming a cargoless, vesselless country.