Indigenous ship owners are pressing major cargo owners, particularly the Dangote Group, to back local fleet development through long-term Contracts of Affreightment (CoAs).
Former President of the Nigerian chapter of the African Ship-owners Association, Capt. Ladi Olubowale, made the call at a Public-Private Dialogue with Chief Executives organised by the Nigerian Chamber of Shipping in Lagos.
He argued that predictable cargo contracts would give indigenous ship owners the financial footing needed to acquire vessels, noting 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,” Olubowale said.
He called on the Dangote Group’s refinery, cement, fertiliser and other industrial arms to channel part of their cargo requirements to qualified Nigerian shipping firms under multi-year CoAs.
Such contracts, he said, would give ship owners the predictable revenue base 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.
Olubowale outlined a proposed model built around four pillars — cargo, contract, finance and vessel — with government setting the regulatory environment while the private sector drives investment and fleet expansion.
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