Indigenous shipowners have called on major cargo owners, including the Dangote Group, among others, to support local fleet development by offering long-term contracts of affreightment for petroleum products, cement, fertilizer, and other bulk cargoes.
The shipowners said cargo is the foundation of shipping, and predictable cargo contracts are what make vessel financing and acquisition possible.
The call was made by a former Nigeria Chapter President of the African Shipowners Association and Group Managing Director of Seamate Maritime Integrated Services Limited, Capt. Ladi Olubowale, at a public-private dialogue with CEOs organized by the Nigerian Chamber of Shipping in Lagos recently.
The dialogue, themed ‘Unlocking efficiency in the marine and blue economy value chain,’ brought together industry stakeholders, including Mr. Edwin Devakumar, Group Vice President of Dangote Group (Oil and Gas), as guest CEO.
Olubowale explained that Nigeria’s maritime strategy must move beyond debates about vessel ownership to “creating commercial conditions that make indigenous vessel acquisition bankable.”
“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,” Olubowale said.
Olubowale argued that shipping is capital-intensive and Nigerian owners cannot sustainably acquire large vessels without guaranteed cargo volumes and bankable employment contracts.
He said Dangote, with its refinery, cement, and fertilizer operations generating huge maritime cargo volumes, is well placed to catalyze local fleet growth by allocating portions of its cargo requirements to qualified indigenous operators under multi-year CoAs.
Such contracts, he noted, would enable Nigerian shipowners to approach banks, development finance institutions, export credit agencies, and international financiers with identifiable cargo and predictable revenue.
Olubowale also raised concern over the dominance of foreign-controlled vessels in lifting Nigerian crude from terminals at Forcados, Bonny, and Escravos, earning huge freight revenues from Nigerian cargo.
He said the policy question should be how to convert the movement of Nigerian cargo into domestic assets, jobs, technical capacity, 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. But fleet development must be connected to cargo, finance, technical capability, and long-term employment,” he said.
He advocated a four-pillar model for fleet development—Cargo, Contract, Finance, and Vessel—where cargo owners provide volumes, CoAs create bankable contracts, financiers fund vessel acquisition, and Nigerian owners provide vessels and services.
According to him, the model would complement, not replace, government interventions like the Cabotage Vessel Financing Fund.
