Maritime

Dangote Refinery Catalyst for Nigeria’s Maritime Sector Development, Local Content Growth — Experts

The Dangote Refinery offers Nigeria significant opportunities to create maritime jobs and strengthen local content participation if the country prioritises marine transportation of refined products and deploys Nigerian owned vessels, maritime experts have said.

The National President the Nigeria Association of Master Mariners (NAMM), Captain Tajudeen Alao, described the refinery as a major driver of wealth creation, noting that its location on the open sea gives Nigeria a strategic advantage for exports and maritime trade.

According to him, the refinery’s deep-water access allows foreign vessels to berth easily and lift products directly for international markets. He said the refinery is well positioned to support coastal shipping and shuttle services to ports such as Port Harcourt, Warri, Calabar and Lagos, creating employment across the maritime value chain, including vessel ownership, crewing, port operations and support services.

Captain Alao urged policymakers to prioritise evacuation of refined products by sea rather than relying heavily on road transport, explaining that Nigeria’s existing network of tank farms makes marine transportation safer, more efficient and more cost effective.

The NAMM president described the over 600 vessel calls recorded at the refinery in its first year of operations as a major opportunity for Nigerians to participate actively in maritime business. He called on banks and financial institutions to provide job focused funding to active maritime operators.

He said mandatory procedures such as tanker vetting, ship inspection reports and compliance checks create opportunities for Nigerian mariners, surveyors and inspectors, while also supporting certification, professional development and sustainable employment.

Alao explained that a 5,000-tonne tanker can carry the equivalent of about 150 trucks, each transporting roughly 30 tonnes, and can be loaded within 12 to 18 hours, compared to the extended time and road congestion caused by truck movements across port cities.

He also highlighted the economic potential of maritime services, including legal and professional support, stressing the need for Nigerian maritime lawyers and service providers to be fully involved and for processes to meet international standards.

On vessel ownership and crewing, Alao said existing laws already support Nigerian participation, noting that current regulations require full Nigerian crewing and majority Nigerian officers on locally owned vessels, while cabotage rules reinforce Nigerian involvement in domestic cargo transport.

He added that Nigerian owned and operated vessels would retain taxable income within the country and prevent revenue losses associated with foreign vessels carrying Nigerian cargo, stressing that stronger enforcement of existing maritime laws would enable Nigeria to fully benefit from its maritime domain and resources.

On his part, master mariner and maritime expert, Capt. (Dr) Michael Ifesemen, said the Dangote Refinery has opened vast opportunities for maritime jobs, port operations and local shipping participation in Nigeria, driven by the influx of vessels and increased marine activities.

According to him, the increased vessel traffic has expanded demand for marine services and manpower, creating jobs for Nigerians in port operations and other maritime-related activities. He said the more ships that call at the refinery, the greater the requirement for skilled personnel across the sector.

Ifesemen noted that while the influx of foreign vessels may pose challenges for some indigenous operators whose vessels do not meet international standards, the situation also presents an opportunity for Nigerian ship owners to upgrade their fleets and align with global requirements.

He said beyond international shipping, the refinery would support West African coastal trade, increasing Nigerian participation in regional maritime commerce and reducing reliance on foreign vessels. This, he added, would strengthen the Cabotage regime and enhance local content in domestic shipping.

The maritime expert also highlighted the role of marine transportation in evacuating Dangote products, noting that moving products by sea would reduce pressure on Nigeria’s roads and lower government expenditure on repairs caused by heavy-duty trucks.

He explained that coastal transshipment along the West African corridor would require barges, many of which are built locally in Nigeria, thereby creating additional employment for barge builders and operators.

On the immediate and long-term benefits of the refinery, Ifesemen said the early phase of operations had already generated significant revenue for port facilities and created employment opportunities that would be sustained. He added that while international vessels currently dominate operations, Nigerian participation is expected to increase in the medium term as regional distribution expands.

He said the refinery’s impact would extend beyond its terminals, attracting other forms of trade and increasing activity at ports that previously recorded lower traffic, while also boosting exports and imports.

Commenting on crude oil supply, Ifesemen said it would be more beneficial for Nigeria to supply the refinery with locally produced crude, although current arrangements limit this possibility. He expressed optimism that existing bottlenecks would be resolved over time, allowing the refinery to rely more on domestic crude supply.

He added that exporting refined petroleum products generates more revenue than exporting crude oil, stressing that Nigeria should aim to refine locally while exporting excess crude and refined products to remain competitive in the global oil market.

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