Indigenous shipowners have called on major cargo owners, particularly Dangote Group, to support the development of Nigeria’s shipping fleet by awarding long-term Contracts of Affreightment (CoAs) to qualified local operators.
The call was made by 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 access to predictable cargo contracts was critical to enabling Nigerian shipowners to secure financing, acquire vessels and expand their operations.
He described cargo availability as the foundation of fleet development, stressing that “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.
He specifically urged Dangote Group to commit part of the cargo generated by its refinery, cement, fertiliser and other industrial operations to qualified Nigerian shipping companies through multi-year CoAs.
According to Olubowale, such arrangements would provide shipowners with predictable revenue streams that could strengthen their ability to approach banks, development finance institutions, leasing companies and other financial institutions for vessel acquisition.
He argued that Nigerian companies could eventually own and operate large commercial vessels, including Suezmax tankers, if fleet development was linked to reliable cargo, access to finance, technical capacity and long-term employment.
“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.
Olubowale proposed a model built around four key pillars: cargo, contract, finance and vessel.
Under the framework, he said, the private sector should drive investment and fleet expansion, while the government provides the regulatory environment required to support the growth of indigenous shipping companies.
He maintained that stronger links between available cargo and Nigerian-owned vessels would provide the commercial foundation needed for sustained fleet development.
