Dangote Group’s plan to acquire vessels for transporting its products across West and Central Africa has received support from indigenous Nigerian shipowners, who say the move could help address one of the country’s major maritime challenges: inadequate shipping capacity.
The company recently disclosed that it plans to acquire vessels to move products such as cement and other industrial goods to markets across the region. The decision comes amid difficulties in securing suitable vessels and the high cost of transporting goods by road through neighbouring countries.
However, maritime industry stakeholders believe Dangote’s investment should also be used as an opportunity to develop Nigeria’s indigenous shipping sector.
Former President of the African Shipowners Association, Captain Ladi Olubowale, said there was nothing wrong with Dangote Group owning vessels to secure its supply chain. However, he argued that the company did not necessarily need to own all the vessels required to transport its products.
According to him, part of Dangote’s cargo requirements could be given to technically qualified Nigerian shipowners through long-term commercial arrangements.
Olubowale suggested the use of Contracts of Affreightment (COAs), time-charter arrangements and other bankable cargo commitments. Such agreements, he explained, could give Nigerian shipping companies the confidence and financial backing needed to acquire and operate suitable vessels.
The proposal is significant because Nigeria has struggled for years with inadequate indigenous vessel capacity. Major cargo owners often have difficulty finding Nigerian vessels capable of handling large-scale international and regional shipments.
Dangote Cement, for example, has been exporting cement for years, but the company recently said the shortage of suitable vessels has become a serious obstacle to expanding its regional exports. Dangote Industries disclosed plans to acquire vessels after experiencing difficulties moving cargo from Nigeria to countries such as Ghana.
The situation highlights a wider challenge facing Nigeria’s maritime industry. Although the country has significant cargo volumes and a large industrial base, many shipping opportunities are still handled by foreign-owned vessels.
Olubowale said Dangote’s planned acquisition has exposed the consequences of Nigeria’s limited indigenous shipping capacity. When Nigerian operators do not have vessels of the right size, specification and operational capability, cargo owners have little choice but to look elsewhere.
This issue has previously been seen in the petroleum sector, where Nigerian shipowners have complained that foreign vessels, including vessels from Angola, have been used to transport cargo connected to Dangote’s refinery because local operators lacked suitable large vessels.
For maritime stakeholders, Dangote’s new plan could therefore have two possible outcomes. It could strengthen the company’s own logistics network, while also creating a major opportunity for Nigerian shipping companies if partnerships are structured properly.
Industry experts believe long-term cargo commitments could make it easier for indigenous shipowners to obtain financing for vessel acquisition. This could eventually increase Nigeria’s fleet capacity, create employment and allow more freight earnings to remain within the Nigerian economy.
The development also comes at a time when the Nigerian government is seeking to strengthen the country’s maritime and blue economy sector. The proposed use of the Cabotage Vessel Financing Fund has remained an important issue for indigenous operators seeking financing to acquire vessels.
If Dangote Group works closely with qualified Nigerian shipowners, stakeholders say the company’s growing regional trade could become a catalyst for the development of Nigeria’s shipping industry.
Ultimately, the debate is no longer simply about whether Dangote should own vessels. It is about how the company’s growing cargo requirements can help build a stronger Nigerian maritime fleet capable of competing across Africa.
