Indigenous ship owners have called on major cargo owners in Nigeria, particularly the Dangote Group, to support the growth of the country’s shipping industry by offering long-term cargo contracts to qualified Nigerian shipping companies.
The call was made by the former President of the African Ship-owners Association (ASA), Nigerian chapter, Capt. Ladi Olubowale, during a Public-Private Dialogue with Chief Executives organised by the Nigerian Chamber of Shipping in Lagos.
Olubowale said predictable cargo commitments would give indigenous ship owners the financial confidence needed to secure funding, acquire vessels and expand their fleets.
According to him, the development of a strong indigenous shipping industry depends largely on access to cargo, noting that “shipping follows cargo.”
He urged the Dangote Group to consider allocating part of the cargo requirements of its refinery, cement, fertiliser and other businesses to qualified Nigerian shipping companies through multi-year Contracts of Affreightment (CoAs).
He explained that such agreements would provide ship owners with predictable revenue streams, making it easier for them to approach commercial banks, development finance institutions, leasing companies and other financiers for vessel acquisition.
“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.
He noted that there was no structural reason Nigerian companies could not eventually own and operate large commercial vessels, including Suezmax tankers.
However, he stressed that fleet development must be linked to the availability of cargo, access to finance, technical expertise and long-term employment opportunities.
Olubowale proposed a model built around four key elements: cargo, contract, finance and vessel.
He said the government should focus on creating an enabling regulatory environment, while private-sector operators and cargo owners should drive investment, vessel acquisition and the expansion of the Nigerian fleet.
He added that stronger collaboration between cargo owners and indigenous ship owners would help reduce the country’s dependence on foreign vessels and promote the development of a more competitive domestic maritime industry.
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