Indigenous Shipowners Urge Dangote for Long-Term Cargo Deals

Indigenous shipowners are advocating for long-term Contracts of Affreightment from major cargo owners, including the Dangote Group, to bolster Nigeria's local shipping fleet. Captain Ladi Olubowale, the former Nigeria Chapter President of the African Shipowners Association and Group Managing Director of Seamate Maritime Integrated Services Limited, made this appeal during a Nigerian Chamber of Shipping Public-Private Dialogue in Lagos.

He stressed that creating commercial conditions for vessel acquisition should take precedence over government intervention. Long-term cargo commitments would provide indigenous shipowners with predictable revenue streams, essential for securing funding from banks and international financiers for vessel acquisition.

Olubowale outlined a four-pillar model involving cargo, contracts, finance, and vessels, where cargo owners ensure predictable volumes, long-term contracts create bankable revenue, financiers fund vessel acquisition, and Nigerian operators provide the vessels and maritime services. He noted that the increasing volumes from Dangote’s refinery, cement, and fertiliser sectors could support this model.