Shipowners urge Dangote to support local fleet

Long-term cargo contracts are crucial for the growth of the local shipping industry, according to indigenous shipowners. Capt. Ladi Olubowale, a former Nigeria Chapter President of the African Shipowners Association and managing director of Seamate Maritime Integrated Services Limited, made this point at a Public-Private Dialogue in Lagos.

Olubowale argued that cargo contracts are the foundation of ship financing and acquisition, and without predictable cargo contracts, vessel financing becomes impossible. He urged major cargo owners, such as the Dangote Group, to offer long-term Contracts of Affreightment for bulk cargoes like petroleum products, cement, and fertiliser.

Olubowale emphasized that Nigeria's maritime strategy should focus on creating commercial conditions that make local vessel acquisition bankable. Dangote, with its vast maritime cargo volumes, is in a strong position to support local fleet development by allocating portions of its cargo requirements to qualified indigenous operators under multi-year Contracts of Affreightment.

This would enable Nigerian shipowners to secure bankable contracts with banks, development finance institutions, and international financiers. The debate should shift from vessel ownership to creating conditions that make indigenous vessel acquisition bankable. Nigeria's maritime industry must leverage its huge cargo base to build a sustainable indigenous shipping sector, especially as intra-African trade expands under the African Continental Free Trade Area.