Dangote Eyes Vessel Acquisition to Ease Export Logistics Challenges

By Adedapo Adesanya

Dangote Industries Limited has concluded plans to acquire vessels to facilitate the movement of its products from Nigeria to markets across West and Central Africa, as it moves to address limited shipping capacity and the rising cost of road transportation, which have hindered its regional expansion.

Speaking from the perspective of the logistical challenges confronting regional trade, Mrs Sada Ladan-Baki, Head of International Trade and Export at Dangote Cement, said the company’s decision to acquire its own vessels was driven by the difficulty of securing adequate shipping capacity.

She disclosed on Tuesday at a seminar on non-oil exports that the conglomerate had encountered serious obstacles in moving products from Nigeria to markets across the region. Dangote Industries Limited operates across a diverse range of business verticals, including cement manufacturing, oil and gas, petrochemicals, fertiliser, food, as well as training and skills development.

According to her, Dangote was at one point unable to secure a vessel to transport a 1,000-metric-tonne consignment to Ghana, despite the relatively short distance between the two countries.

“We are moving forward towards getting our own ships in order to do this business,” Mrs Ladan-Baki said.

The official noted that reliance on road transportation was equally challenging, as products destined for Ghana must transit through neighbouring countries such as Benin and Togo, where they attract taxes and other charges.

The situation, she said, raises transport costs and makes Nigerian exports less competitive in regional markets, strengthening the case for Dangote to develop its own maritime transport capacity.

The move is significant because Dangote’s businesses are becoming increasingly dependent on maritime trade. Its $20 billion refinery in Lagos is already reshaping Nigeria’s seaborne trade, with the US Energy Information Administration  (EIA) saying this week that Nigeria’s petroleum-product exports by sea have grown seven-fold since 2023, driven primarily by output from the Dangote refinery.

The refinery is also expected to handle about 600 vessels annually, combining ships bringing in crude and those carrying refined products to domestic and international markets.