Nigerian indigenous shipowners have challenged major cargo owners, particularly the Dangote Group, to lead a fresh drive for local fleet development by committing substantial cargo volumes to Nigerian shipping companies through long-term Contracts of Affreightment (CoAs).
The shipowners argued that Nigeria’s ambition to build a globally competitive maritime industry would remain elusive unless the country first creates the commercial conditions required for indigenous operators to acquire and operate vessels.
Captain Ladi Olubowale, former President of the Nigerian chapter of the African Shipowners Association (ASA) and Group Managing Director/CEO of Seamate Maritime Integrated Services Limited, 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,” brought together maritime industry stakeholders, including cargo owners, terminal operators, policymakers and industry leaders, with Dangote Group’s Group Vice President, Edwin Devakumar, participating as guest CEO.
Olubowale, in a direct appeal for a new approach to indigenous fleet development, said the country must stop waiting for Nigerian shipowners to acquire vessels before granting them access to cargo.
Instead, he advocated securing the cargo first, converting it into bankable long-term contracts and using those contracts to unlock financing for vessel acquisition.
“Shipping follows cargo. 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.
According to him, shipping is a highly capital-intensive business, making it difficult for indigenous operators to acquire large commercial vessels without predictable cargo volumes and long-term employment contracts.
He said the proposed model would enable qualified Nigerian shipping companies to approach commercial banks, development finance institutions, export credit agencies, leasing companies and international vessel financiers with identifiable cargo, predictable revenues and bankable contracts.
Dangote’s Cargo Base Can Drive Fleet Growth
Olubowale specifically pointed to Dangote Group’s expanding refinery, cement, fertiliser and other industrial operations as an opportunity to create the commercial foundation for a new generation of Nigerian-owned vessels.
He urged the conglomerate to consider allocating part of its maritime cargo requirements to qualified indigenous operators through structured, multi-year CoAs.
Such contracts, he argued, could provide the revenue certainty required for Nigerian companies to secure financing and acquire vessels capable of servicing domestic and international trades.
The shipowner said Nigeria’s maritime policy should therefore move beyond the narrow question of vessel ownership and focus on connecting cargo, contracts, finance and vessels.
Under the model, cargo owners would provide predictable volumes; long-term CoAs would transform those volumes into bankable commercial commitments; financial institutions would fund viable vessel acquisitions; while indigenous shipowners would provide vessels, technical management, employment and maritime services.
Olubowale stressed that the approach should complement, rather than replace, government-backed interventions such as the Cabotage Vessel Financing Fund.
“This approach would complement initiatives such as the Cabotage Vessel Financing Fund rather than making indigenous fleet development entirely dependent on government-backed financing,” he said.
‘Nigeria Can Own Suezmax Tankers’
Olubowale also drew attention to the continued participation of foreign-controlled vessels in the transportation of Nigerian crude and petroleum products.
He noted that large tankers, including Suezmax vessels, routinely call at Nigerian crude terminals such as Forcados, Bonny and Escravos, generating substantial freight revenues from Nigerian-origin cargo.
He said the strategic question should be how Nigeria can progressively convert the transportation of its own cargo into domestic maritime assets, jobs, technical expertise, financing opportunities and long-term economic value.
“There is no structural reason why Nigerian companies should not ultimately own and operate Suezmax tankers and other large commercial vessels,” Olubowale said.
But he cautioned that fleet development must be tied to cargo availability, finance, technical competence and long-term employment.
“Fleet development must be connected to cargo, finance, technical capability and long-term employment,” he added.
According to him, developing Nigerian-owned Suezmax capacity should form part of a broader strategy to increase indigenous participation in the transportation of crude oil and refined petroleum products.
He rejected an approach based simply on protectionism without building competitive capacity, arguing that the country needed “deliberate creation of commercially competitive Nigerian shipping capacity.”
Private Sector Must Drive Blue Economy
Olubowale further called for a clearer division of responsibilities among government, cargo owners, financiers and maritime operators.
He said government should primarily serve as an enabler, regulator and facilitator, while the private sector provides the commercial engine for fleet development.
“Nigeria’s ambition to build a globally competitive marine and blue economy will require deeper collaboration between cargo owners, indigenous shipowners, banks, institutional investors, ports, regulators and government,” he said.
He called for predictable regulation, competitive ports, improved access to finance, local-capacity development and transparent commercial frameworks.
According to him, cargo owners should provide commercial opportunities, financial institutions should finance bankable projects, while competent private-sector operators should invest, acquire assets and deliver maritime services.
He described the proposed framework as “private-sector-led, regulator-enabled and development-focused maritime growth.”
Olubowale also urged continued engagement among policymakers, cargo owners, shipowners, terminal operators and financial institutions, saying sustainable maritime development would require stakeholders across the value chain to pursue common economic objectives.
AfCFTA, Rising Cargo Demand Create Opportunity
He said the opportunity to turn Nigerian trade into Nigerian maritime capital extends beyond Dangote Group.
According to Olubowale, Nigeria’s position as one of Africa’s major producers and consumers of petroleum products, cement, fertiliser, agricultural commodities and industrial goods provides a substantial cargo base that could support a sustainable indigenous shipping industry.
He added that the expansion of intra-African trade under the African Continental Free Trade Area (AfCFTA) would further increase the strategic importance of maritime transportation.
“The central question is therefore not simply whether Nigeria can own more ships. It is whether the country can deliberately use its enormous cargo base to create a commercially sustainable indigenous shipping industry,” he said.
Olubowale argued that long-term cargo commitments could help Nigerian operators build fleets, create seafaring and shore-based jobs, retain freight earnings within the economy, strengthen technical capacity and improve the competitiveness of Nigerian shipping companies in African trade.
He said major Nigerian cargo owners could therefore contribute to the development of the maritime sector beyond their core industrial operations.
“Dangote and other major Nigerian cargo owners can therefore play a role extending beyond industrial production. Through structured partnerships with credible indigenous operators, they can help create the commercial foundation for the next generation of Nigerian shipping companies,” he said.
Olubowale concluded that Nigeria would only achieve sustainable fleet development by linking the country’s enormous cargo base to commercially viable indigenous shipping capacity.
“If we connect Nigerian cargo to Nigerian maritime capacity, we will not merely acquire ships—we will build a sustainable shipping industry,” he said.
