Nigeria’s Fleet Surge: Dangote Orders Ships as State Fund Unlocks $100m
Dangote Group targets 1,800 annual vessel calls as Nigeria’s Cabotage Fund clears first $100m loan for local owners.
Nigeria is accelerating efforts to develop its domestic shipping industry as the government’s Cabotage Vessel Financing Fund (CVFF) begins disbursing subsidies to local shipowners. The initiative coincides with Dangote Group’s ambitious plans to expand its maritime fleet, aiming to handle 1,800 vessel calls annually by 2029 to support its growing refinery operations.
The Nigerian Maritime Administration and Safety Agency (NIMASA) has received 92 applications for the CVFF, which was unlocked earlier this year. Of these, 20 have been sent to approved banks for processing, and one has already been cleared for funding. To improve access to the fund, the government has increased the number of participating financial institutions from five to 12.
Government funding spurs local shipownership
Nigeria’s Minister of Marine and Blue Economy, Adegboyega Oyetola, highlighted the broader benefits of the program, stating that the CVFF could strengthen the country’s indigenous fleet while boosting shipyard activity, maritime logistics, and related industries.
Dangote Group, led by Africa’s wealthiest individual, Aliko Dangote, is pivoting from road to sea transport to reduce costs and avoid regional trade barriers. The conglomerate currently faces significant challenges exporting cement and refined products across West Africa due to cross-border taxes.
Sada Ladan-Baki, Head of International Trade Export at Dangote Cement, explained the issue: “When transporting cement from Nigeria to Ghana, we encounter an 18% value-added tax in Benin, another in Togo, and yet another if shipping to Ivory Coast. By the time our trucks reach these markets, the cumulative taxes have already made our products uncompetitive.”
Dangote Group shifts focus to maritime transport
The company’s $14.3 billion refinery in Lagos currently processes 700,000 barrels per day (bpd), with plans to double capacity to 1.4 million bpd by 2029. This expansion will require a sharp increase in maritime logistics, with vessel calls projected to rise from 300 to 1,800 annually. Edwin Devakumar, Dangote Group’s Vice President for Oil, Gas, and Fertilizer, confirmed that the company is negotiating with Chinese shipbuilders, with the first vessels expected to arrive by 2029.
While Dangote Group has invested in a $100 million truck assembly plant in Lagos—a joint venture with Sinotruk China capable of producing 10,000 trucks annually—road transport remains inefficient for long-distance trade. The company’s shift toward maritime logistics reflects its need for a more cost-effective and scalable solution to support its expanding industrial operations.
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