Why Nigerian Shipping Companies were Absent in Dangote Refinery Deliveries

Recent investigations by the Nigerian Tribune have illuminated a concerning absence of Nigerian shipping firms in the six crude oil deliveries made to the $19.5 billion Dangote Petro-chemicals Refinery situated in Lagos. Notably, no local company participated in this crucial process, pointing to significant inadequacies in Nigeria’s shipping capabilities.

In an exclusive interview over the weekend, Mallam Aminu Umar, President of the Nigerian Chamber of Shipping (NCS), disclosed that none of the six ships delivering crude oil products to the Dangote Refinery were owned or operated by Nigerian companies. This revelation comes as a blow to the nation, attributed to the lack of vessels capable of handling the substantial cargo sizes involved in the refinery’s operations.

Mallam Aminu Umar clarified, “During the two delivery stages at the Dangote Refinery, only one Nigerian shipping company, including an internationally owned firm, participated in the initial Gas oil delivery for system flushing. However, in the subsequent Crude oil delivery stage, where six different ships were involved, no Nigerian company was part of the process.”

The President of the NCS elaborated on the vessel types used, stating, “The ships employed, known as Suez Max, can carry up to a million barrels of Crude oil products, equivalent to 150,000 deadweight vessels. Presently, no Nigerian entity owns a vessel of this capacity trading in crude oil.”

Despite this setback, Mallam Aminu Umar expressed optimism about future opportunities for indigenous shipping companies in the evacuation of Diesel and Aviation products produced by the Dangote Refinery. He anticipates increased local participation as these products become ready for shipment.

He congratulated Alhaji Aliko Dangote for realizing the refinery’s operations and encouraged Nigerian ship owners to embrace the forthcoming opportunities, stating, “Nigerian ship owners should be excited because this will open up numerous investment opportunities and active involvement in the evacuation of finished products from the refinery.”

The NCS President concluded with expectations that local investors would play a more significant role in the logistics chain as the Dangote Refinery advances its operations. This development comes after the refinery received its sixth batch of one million Agbami barrels of crude oil products, marking a milestone in its operational readiness.