Shipowners Urge Dangote to Support Local Fleet With Long-term Cargo Contracts

Nigerian shipowners are asking the Dangote Group to support local fleet development by signing long-term cargo contracts covering petroleum products, cement, and fertiliser.

The call was made by Captain Ladi Olubowale, former President of the African Shipowners Association’s Nigerian chapter, at a Lagos dialogue organised by the Nigerian Chamber of Shipping. Olubowale said Dangote’s long-term Contracts of Affreightment (CoAs) could give Nigerian shipowners the bankable revenue needed to finance and acquire vessels — unlocking growth in Nigeria’s maritime and blue economy sector, according Punch report.

The call came from Captain Ladi Olubowale, former President of the African Shipowners Association’s Nigerian chapter and group managing director of Seamate Maritime Integrated Services, at a Public-Private Dialogue with CEOs organised by the Nigerian Chamber of Shipping in Lagos, themed “Unlocking Efficiency in the Marine and Blue Economy Value Chain.”

Olubowale’s pitch flips the usual sequence: rather than shipowners buying vessels first and hunting for cargo afterward, he wants cargo secured through credible multi-year contracts first — giving owners something bankable to take to lenders. With its refinery, cement and fertiliser operations generating heavy maritime volumes, he argued Dangote is positioned to be the anchor client that makes this work, and urged the group to allocate part of its cargo requirements to qualified Nigerian shipping firms under structured CoAs. Such contracts, he said, would let local operators approach banks, DFIs, export credit agencies and international vessel financiers with real, identifiable cargo behind them — even opening a path toward Nigeria eventually owning and operating larger vessels like Suezmax tankers currently used for crude exports.

Other voices at the dialogue pushed the ask further. Maritime lawyer Dr Olisa Agbakoba (SAN), who helped draft the Cabotage Act, challenged Dangote to go big — ordering 100 vessels and applying for national carrier status, arguing government would be compelled to support fleet-building at that scale. Starz Investment’s Iroghama Ogbeifun flagged financing limits, noting the $25m Cabotage Vessel Financing Fund (CVFF) cap can’t cover a Suezmax or VLCC. Jean Anishere (SAN) put the underlying logic bluntly: Nigeria has the cargo and the coastline — what’s missing is Nigerian ships, professionals and capital.

Dangote’s own side isn’t dismissive of the idea. At a related event, Edwin Devakumar, the group’s VP for oil, gas and fertiliser, said Dangote’s past experience shows the model can work — its cement, flour, sugar and salt operations once generated nearly 300 vessel calls a year that a Nigerian owner could have chartered against, had one stepped forward. He argued financing schemes work better when tied to assured cargo rather than just funding hulls.