Dangote Industries is preparing to acquire its own vessels as the conglomerate seeks to overcome shipping challenges and reduce the rising cost of transporting its products to markets across West and Central Africa.
The move is expected to strengthen Dangote’s maritime operations as the company expands its regional trade and becomes increasingly reliant on sea transportation.
The Head of International Trade and Export at Dangote Cement, Sada Ladan-Baki, disclosed the plan on Tuesday at a seminar on non-oil exports.
According to her, the company has faced difficulties securing enough shipping capacity for its products. She cited an instance where Dangote was unable to obtain a vessel to move a 1,000-metric-tonne shipment to Ghana, despite the relatively short distance between Nigeria and Ghana.
“We are moving forward towards getting our own ships in order to do this business,” Ladan-Baki said.
She explained that road transportation has also created challenges for the company because goods heading to Ghana must pass through countries such as Benin and Togo, where additional taxes and charges increase the overall cost.
The higher transportation expenses, she said, make Nigerian products less competitive in regional markets and have strengthened the case for Dangote to develop its own maritime transportation capacity.
Dangote’s Growing Maritime Operations
The planned vessel acquisition comes as Dangote’s businesses become increasingly connected to maritime trade.
The company’s $20 billion refinery in Lagos has significantly increased Nigeria’s seaborne petroleum-product exports. According to the US Energy Information Administration, Nigeria’s exports of petroleum products by sea have increased seven-fold since 2023, largely due to production from the Dangote refinery.
The refinery is also expected to handle approximately 600 vessels annually, including ships transporting crude oil into the facility and vessels carrying refined petroleum products to Nigerian and international markets.
Shipping Association Backs Move, Raises Maintenance Concerns
Reacting to Dangote’s plan, the President of the Indigenous Shipping Association of Nigeria (ISAN), Otunba Shola Adewumi, said the company has historically depended on foreign-flagged vessels to move crude oil and refined petroleum products because Nigeria does not have enough vessels with the required capacity.
However, Adewumi cautioned that purchasing vessels would only be the beginning, as maintaining and managing them could present greater challenges.
He also urged Dangote to consider registering the vessels under the Nigerian flag if acquired.
According to him, doing so would increase Nigeria’s national shipping capacity and strengthen the country’s position in the global maritime industry.
The proposed fleet could also create new employment opportunities for Nigerian seafarers and other professionals working in shipping and international trade.
The move is therefore expected to not only address Dangote’s transportation challenges but also potentially contribute to the growth of Nigeria’s maritime sector.
Source: Dangote Cement / Indigenous Shipping Association of Nigeria.
