Shipowners urge Dangote to support local fleet

Nigerian shipowners are urging major cargo companies, including the Dangote Group, to provide long-term Contracts of Affreightment for bulk cargoes to support the growth of the local shipping industry. Capt. Ladi Olubowale, a former Nigeria Chapter President of the African Shipowners Association, made this appeal during a Public-Private Dialogue in Lagos.

Olubowale emphasized that shipping is a capital-intensive industry, and Nigerian shipowners cannot sustainably acquire large vessels without guaranteed cargo volumes and bankable employment contracts. He argued that Dangote, with its vast cargo volumes from its refineries, cement, and fertiliser operations, is well-positioned to encourage local fleet development by allocating portions of its cargo needs to qualified indigenous operators under multi-year Contracts of Affreightment.

Olubowale also highlighted the dominance of foreign-controlled vessels in handling Nigerian crude oil, which earns significant freight revenues but fails to create domestic assets, jobs, and long-term economic value. He proposed a four-pillar model for fleet development, comprising Cargo, Contracts, Finance, and Vessels, to facilitate the growth of the Nigerian shipping industry.

The model emphasizes the need for cargo owners to provide volumes, contract holders to create bankable contracts, financiers to fund vessel acquisition, and shipowners to supply vessels and services. Olubowale stressed that government interventions, such as the Cabotage Vessel Financing Fund, should serve as an enabler, regulator, and facilitator, while the private sector drives the commercial engine.