Dangote Group seeks cargo-backed financing to boost Nigeria’s shipping
On Thursday, at the Nigeria Chamber of Shipping’s 2026 Members’ Evening in Lagos, DEVAKUMAR Edwin, the Group Vice President of Oil and Gas at Dangote Group, emphasized the critical need for cargo-backed financing to bolster Nigeria’s shipping sector. The event, themed ‘A Public-Private Dialogue: Unlocking Efficiency in the Marine and Blue Economy Value Chain,’ shed light on the essential elements required for sustainable Nigerian-owned shipping businesses to thrive.
Challenges in the Shipping Industry
Edwin highlighted the significance of assured cargo, financing, and supportive infrastructure in the development of Nigerian-owned shipping enterprises. He stressed that without these essential components, new vessel owners struggle to sustain their businesses, even with financial backing available. The lack of capacity in Nigerian-owned ships has been a prevalent issue, hindering the growth potential of the industry.
Opportunities for Growth and Development
With the expansion of refinery, fertilizer, and petrochemical exports, Edwin pointed out a significant opportunity for indigenous shipping companies. Dangote Group, aiming to double its capacity and handle approximately 1,800 shipments annually, plans to create a substantial demand for Nigerian-flagged vessels. Furthermore, opportunities exist in various marine support services such as tugboats, pilot boats, dry docking, and shipbuilding.
Call for Industry Development and Collaboration
Edwin emphasized the importance of talent development beyond seafarers, citing the need for naval architects, marine lawyers, surveyors, finance professionals, and shipping managers. He underscored the necessity for greater industry exposure and practical opportunities for Nigerian graduates to enhance their skills. Additionally, he urged for improved port efficiency through automation and better coordination to match international best practices and prevent revenue loss due to inefficiencies.
In conclusion, Alhaji Aminu Umar, President of the Nigeria Chamber of Shipping, stressed the significance of sustained public-private dialogue to enhance efficiency in Nigeria’s marine and blue economy. The Chamber remains dedicated to advocating for the maritime industry’s growth, calling for investment, predictable regulations, and increased indigenous participation to support the industrial growth catalyzed by Dangote’s refinery exports.
The event highlighted the collaborative efforts needed to strengthen Nigeria’s maritime economy and maximize its economic potential. With a focus on cargo-backed financing and industry development, stakeholders are urged to engage in meaningful partnerships to drive growth and efficiency in the shipping sector.
