Dangote Industries has concluded plans to acquire its own vessels as the conglomerate moves to overcome persistent shipping shortages and rising transportation costs affecting the movement of its products across West and Central Africa.
The planned investment is aimed at giving Dangote greater control over the transportation of its products while reducing its dependence on external shipping operators and expensive road-based logistics.
Sada Ladan-Baki, Head of International Trade and Export at Dangote Cement, disclosed the development on Tuesday during a seminar on non-oil exports.
She explained that the company had encountered significant difficulties securing adequate shipping capacity for products destined for regional markets.
According to her, the challenge became particularly clear when Dangote struggled to secure a vessel to transport a consignment of just 1,000 metric tonnes of products from Nigeria to Ghana despite the relatively short distance between the two countries.
The experience prompted the company to consider developing its own maritime transportation capacity instead of depending entirely on vessels operated by other shipping companies.
Ladan-Baki said the company was moving forward with plans to acquire its own ships to support its regional trade operations.
The move is also expected to address the high cost of transporting Dangote products by road to neighbouring West African countries.
She explained that products transported by road from Nigeria to Ghana must pass through countries such as Benin and Togo, exposing exporters to additional taxes and other charges.
These additional costs make Nigerian products less competitive in regional markets and create logistical disadvantages for companies seeking to expand their exports from the country.
Developing its own shipping fleet could therefore allow Dangote to bypass some of the overland transportation challenges while improving the efficiency of its regional distribution network.
The planned fleet is particularly significant because Dangote’s businesses are becoming increasingly dependent on maritime transportation as the conglomerate expands its production and export activities.
The Dangote Petroleum Refinery in Lagos has already transformed Nigeria’s position in the regional petroleum-products market, with the United States Energy Information Administration reporting a seven-fold increase in Nigeria’s seaborne petroleum-product exports since 2023, driven primarily by the refinery.
The refinery is also expected to handle about 600 vessels annually, including ships bringing crude into Nigeria and vessels transporting refined products to domestic and international markets.
The growing maritime requirements of the refinery and Dangote’s other businesses make reliable shipping capacity increasingly important to the conglomerate’s long-term operations.
The proposed acquisition could also have wider implications for Nigeria’s maritime sector if the vessels are registered and operated under the Nigerian flag.
President of the Indigenous Shipping Association of Nigeria, Otunba Shola Adewumi, said Dangote had historically relied on foreign-flagged vessels because Nigeria lacked sufficient ships capable of handling the scale and capacity required for its operations.
Adewumi welcomed the planned acquisition but cautioned that purchasing ships was only the beginning because vessel maintenance and management could prove more demanding.
He also expressed hope that Dangote would register the vessels under the Nigerian flag, arguing that doing so would increase the country’s national fleet and strengthen Nigeria’s influence in international shipping.
The acquisition could equally create employment opportunities for Nigerian seafarers and other professionals working in maritime transportation, logistics and international trade.
Beyond employment, a larger Nigerian-owned shipping fleet could contribute to efforts to reduce the country’s dependence on foreign vessels for the transportation of its exports and petroleum products.
For Dangote, controlling part of the shipping chain could also provide greater flexibility when market conditions make it difficult or expensive to charter vessels from external operators.
The development comes as the conglomerate continues to expand its industrial footprint and seek stronger access to markets across Africa.
Dangote Cement already operates major production facilities in several African countries, while the refinery has positioned the group as an increasingly important player in the continent’s energy and petroleum-products trade.
The company’s decision to invest in maritime transportation therefore reflects a broader strategy of building an integrated logistics network capable of supporting its growing manufacturing and export operations.
It also highlights the infrastructure challenges Nigerian businesses face when attempting to compete in regional and international markets.
Despite Nigeria’s extensive coastline and strategic position along the Gulf of Guinea, domestic companies still face significant challenges involving shipping capacity, port infrastructure, logistics costs and maritime financing.
Dangote’s planned fleet could consequently become an important development for the company and potentially demonstrate how major Nigerian industrial groups can respond to weaknesses in the country’s transportation system.
If successfully implemented, the investment could give Dangote greater control over delivery schedules, transportation costs and access to regional markets.
For Nigeria’s maritime industry, the emergence of a major indigenous industrial group as a vessel owner could also provide an opportunity to increase local shipping capacity and develop more employment within the sector.
The success of the initiative, however, will depend not only on acquiring vessels but also on effective management, maintenance, financing, crew development and compliance with international maritime regulations.
For now, Dangote’s decision signals a major shift in its logistics strategy as the conglomerate seeks to overcome shipping constraints and strengthen the movement of Nigerian-made products across West and Central Africa.