KEY POINTS
• Dangote Group calls for financing tied to assured cargo to support Nigerian owned vessels.
• Refinery, fertiliser and petrochemical exports could create demand for indigenous shipping capacity.
• Dangote plans to increase shipments to about 1,800 annually, creating opportunities for Nigerian flagged vessels.
• Port delays and manual processes are pushing some cargo through neighbouring countries, causing revenue losses.
MAIN STORY
Nigeria needs cargo backed financing to build a stronger indigenous shipping industry, Group Vice President, Oil and Gas, Dangote Group, Mr Devakumar Edwin, has said.
Edwin made the call at the Nigeria Chamber of Shipping’s 2026 Members’ Evening in Lagos, where stakeholders discussed ways to improve efficiency across the marine and blue economy value chain.
He said access to finance alone would not solve the challenges facing prospective Nigerian vessel owners, arguing that banks and other financiers must consider the cargo that will support vessels throughout their operating life.
“Without assured cargo and supporting infrastructure, new vessel owners struggle and businesses fail, even when finance is available,” Edwin said.
He urged financial institutions to consider the wider shipping ecosystem when funding projects, including vessel management, insurance, regulatory requirements and long term charter arrangements.
Edwin said Dangote Group previously handled about 300 vessel movements annually for its cement, sugar and flour businesses, but Nigerian owned vessels did not have sufficient capacity to meet the demand.
He said the expansion of the group’s refinery, fertiliser and petrochemical exports now provides a larger opportunity for indigenous shipping companies.
Dangote plans to increase its capacity and handle about 1,800 shipments annually, he said, potentially generating substantial demand for Nigerian flagged vessels and related marine services.
The opportunity, according to Edwin, extends beyond vessel ownership to tugboats, pilot boats, dry docking, shipbuilding, FPSO servicing and other support activities.
He said stronger local participation would create employment while keeping a larger share of shipping income within Nigeria.
THE ISSUES
Edwin’s argument centres on the need to finance shipping as a complete business rather than treating vessel acquisition as a standalone investment.
He said cargo availability should form part of the financing structure because vessels need predictable business to remain commercially viable after acquisition.
Nigeria also loses economic value when shipping services, financing, insurance and freight earnings are captured by foreign operators, he said.
The wider problem, according to Edwin, mirrors Nigeria’s dependence on imported finished products despite having access to raw materials that could support domestic manufacturing.
He cited products including linear alkyl benzene used in detergents and base oils used in lubricants as examples of imports that could potentially be produced locally.
The shortage of skilled maritime professionals is another constraint. Edwin called for investment in training naval architects, marine lawyers, surveyors, finance professionals and shipping managers alongside seafarers.
He said Nigerian graduates had the required talent but needed more practical exposure and opportunities within the industry.
He also raised concerns about port efficiency, citing an average vessel turnaround time of about 2.5 days at Tanger Med compared with about six days in Nigeria.
According to Edwin, manual processes and weak coordination contribute to the longer turnaround time, while delays are also encouraging some cargo owners to route shipments through Lome and Cotonou before moving the goods into Nigeria by barge.
“This causes revenue loss to the country,” he said.
WHAT’S BEING SAID
“Without assured cargo and supporting infrastructure, new vessel owners struggle and businesses fail, even when finance is available.”
Devakumar Edwin, Dangote Group
“Give us the cargo, we’ll get the ships.”
Jean Anishere, Nigeria Chamber of Shipping
WHAT’S NEXT
Edwin urged the Nigeria Chamber of Shipping to bring cargo owners, shipowners, regulators and financiers together to develop stronger financing and business structures for indigenous shipping.
He also called for implementation of a functional National Single Window to improve coordination and reduce manual processes at Nigerian ports.
Nigeria Chamber of Shipping President, Alhaji Aminu Umar, called for sustained public private engagement, predictable regulation and increased investment to improve the competitiveness of the country’s maritime sector.
The Chamber’s Governing Council Member, Mrs Jean Anishere, also called for stronger commitments to cargo backed financing through the Cabotage Vessel Financing Fund.
BOTTOM LINE
Nigeria’s expanding refinery, fertiliser and petrochemical exports could provide the cargo base needed to grow indigenous shipping, but Edwin says finance must be structured around that demand. Without improvements in port efficiency, infrastructure, skills and regulation, the country risks losing more maritime revenue to foreign operators and neighbouring ports.
