Dangote Industries Plans Shipping Acquisition for Exports

Dangote Industries Limited is contemplating a move into shipping due to difficulties in securing vessels for cement exports from Nigeria to neighboring West African countries. Sada Ladan-Baki, the head of international trade export at Cement, revealed this plan during a seminar on non-oil exports.

The company, which has been exporting cement for 16 years and has an annual production capacity of 50 million metric tonnes, currently depends on trucks for deliveries to Ghana, Togo, and Ivory Coast. However, Ladan-Baki noted that taxes imposed along regional road corridors significantly reduce the company's profit margins and diminish the price competitiveness of Nigerian products.

The lack of locally owned shipping capacity has been a longstanding issue since the Nigeria National Shipping Line ceased operations in 1995. To address this gap, Ladan-Baki urged the government to activate Nigeria's $700 million fund aimed at assisting Nigerian operators in acquiring ships.