Africa’s Wealthiest Tycoon Pursues Overseas Ventures Amid Nigerian Setbacks with Dangote Refinery

Ladi Olubowale, the President of the African Shipowners Association in Nigeria, recently shared insights with Punch regarding the troubling situation in Nigeria’s maritime industry. Specifically, he expressed concerns about the Dangote Group’s decision to rely on foreign fleets for substantial cargo operations. This situation stemmed from a significant shortage of local vessels currently capable of handling the scale required.

“The reality is that the narrative surrounding this issue is straightforward; the Dangote Group opted to charter a majority of their freight from the Angolan fleet simply because they possess the necessary vessels, while we do not,” he articulated, reflecting a sentiment that many in the local shipping industry share.

Olubowale elaborated on this lack of capacity, stating, “We currently don’t have large vessels like Supermax, Suezmax, or Aframax types that could be utilized for this purpose.” These insights paint a stark picture of the challenges facing Nigeria’s shipping sector. The absence of such critical resources not only limits operational capabilities but also stifles growth opportunities within the local industry.

He further noted, “If we had the capacity that the Angolan people have, it would have been an opportunity for us. Instead, we find ourselves in a situation of substantial financial loss.” In a rapidly evolving global marketplace, the benefits enjoyed by foreign competitors serve as a reminder of what Nigeria could be capitalizing on. “The profits they’re reaping are the ones we could be harvesting,” he lamented, emphasizing a sense of urgency and frustration within the local maritime community.

But what truly defines a thriving trade environment? Olubowale introduced a critical framework: “Every trade revolves around three core components—trade itself, capacity, currency, and, importantly, the nature of the cargo.” His insights foster a thought-provoking dialogue on the intricate tapestry that supports the maritime industry.

These discussions arise amidst a wave of dissatisfaction sweeping through Nigeria’s maritime landscape. Edward Sowho, a representative of the Nigerian Indigenous Shipowners Association, echoed Olubowale’s sentiments. He pointed out that, while Nigerian vessels are not actively involved in these operations, there remains potential for arrangement—if indeed the Dangote Group is earnest in its willingness to collaborate with local businesses.

“Those vessels used in Angola might not strictly belong to Angolan interests alone; it’s common practice to arrange for vessels from various sources,” Sowho explained. Such nuance raises an important question: Could local businesses be integrated into this framework if the commitment were genuine? “It’s not an excuse to say partnerships cannot be formed,” he asserted, challenging the status quo.

“If I were in the position of owning a refinery, my first step would be to reach out to a group like NISA and state my need for specific vessel sizes to facilitate the movement of my cargo. I am confident equitable arrangements could be made.” This perspective underlines the potential for collaboration among indigenous players in the shipping industry—a collaboration that could reshape economic dynamics.

As this conversation unfolds, the Dangote Group has maintained its stance that demonstrated capacity will be a decisive factor when selecting business partners. Anthony Chiejine, the company spokesman, articulated a clear position, stating, “We will always engage with shipowners who have the necessary capability.” This brings to light a vital question: How can local shipowners cultivate the infrastructure and support needed to compete effectively?

“Olubowale is well-versed in these industry challenges; perhaps a more pointed inquiry would be to ask why the sector struggles to attract funding,” Chiejine suggested. Such inquiries could lead to deeper investigations into the systemic issues plaguing the local maritime industry.

Echoes of Dissent in the Maritime Community

This discourse follows troubling accusations against the Dangote Group. Aliko Dangote himself articulated frustrations over logistics challenges that plague the refinery’s operations, shedding light on broader implications for local enterprises. Olufemi Adewole, Executive Secretary of DAPPMAN, rang alarm bells, declaring that many local merchants, particularly small businesses relying on flexible coastal supply networks, are not seeing positive returns from Dangote’s practices.

“Since the launch of the Dangote refinery, operations have been anything but smooth,” Adewole remarked, recalling initial meetings with the Dangote management where they had received promises of accommodation. However, unresolved issues continue to surface. “We remain eager to work with Dangote, but the real question is whether he is prepared to provide us with the products we require,” he emphasized. This opens up a door to discussions on accessibility and inclusive practices within the industry.

Frustrations were further heightened by systemic barriers, as Adewole elaborated on the ordering and pricing processes that seem disproportionately favorable to select traders while leaving others in the dark. “Only after clearance do you receive a proforma invoice, which raises transparency concerns,” he pointed out.

Aliko Dangote himself has not shied away from voicing his own frustrations. He highlighted that, astonishingly, transporting refined products from the Lekki facility is more costly for Nigerian oil marketers than acquiring them from offshore depots in neighboring countries such as Togo. Why should local logistics be more burdensome than international alternatives?

He attributed this pricing disparity to excessive port taxes, bureaucratic complications, and regulatory inefficiencies, all of which influence distribution costs significantly. This not only hampers local businesses but also compromises the refinery’s competitive edge on both national and global fronts.

As we navigate these complex waters, one thing remains clear: the future of Nigeria’s maritime industry hinges on a blend of capacity building, collaboration, and an earnest commitment from local giants like the Dangote Group to uplift indigenous stakeholders. Only then can we truly address the myriad challenges that stifle growth and innovation in this vital sector.

Edited By Ali Musa
Axadle Times International – Monitoring.