Ship owners urge Dangote, others to back indigenous shipping with cargo deals

By Providence Ayanfeoluwa

Indigenous ship-owners have called on major cargo owners, particularly Dangote Group, to support Nigerian fleet development through long-term Contracts of Affreightment (CoAs).

 Former President of the African Ship-owners Association (ASA), Nigerian chapter, Capt. Ladi Olubowale, made the call at a Public-Private Dialogue with Chief Executives, organised by the Nigerian Chamber of Shipping in Lagos.

He said predictable cargo contracts would enable indigenous ship owners to secure financing and acquire vessels, stressing that “shipping follows cargo.”

Olubowale said: “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 urged Dangote Group, including the refinery, cement, fertilizer and other industrial operations, to allocate part of its cargo requirements to qualified Nigerian shipping companies under multi-year CoAs.

According to him, such contracts would give shipowners the predictable revenue needed to approach banks, development finance institutions, leasing companies and other financiers for vessel acquisition.

“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.

He said the proposed model should be built around four pillars — cargo, contract, finance and vessel — with government providing the enabling regulatory environment while the private sector drives investment and fleet expansion.