Maritime industry stakeholders have identified the expanding operations of the Dangote refinery and the anticipated activation of additional refining facilities across Nigeria as a transformative opportunity for the country’s shipping sector, with projections indicating vessel movements could reach between 950 and 1,150 annually once all refineries become fully operational.
The assessment, drawn from industry experts and maritime associations, underscores the potential for Nigeria to significantly expand its participation in regional maritime commerce, create employment across the maritime value chain, and reclaim freight revenue currently lost to foreign shipping operators. However, stakeholders have emphasised that capturing these opportunities will require swift policy action, stronger enforcement of existing maritime laws, and strategic investment in local shipping capacity.
Sunday Ademuyiwa, Director of International Trade at the Maritime Researchers and Authors Association of Nigeria (MARASSON), has called on the Federal Ministry of Marine and Blue Economy to take immediate action to ensure Nigeria capitalises on the freight opportunities presented by the refinery operations. Speaking on the issue, Ademuyiwa revealed that the Dangote Refinery alone recorded approximately 650 vessel calls during its first year of operations, a figure he described as significant given the facility’s relatively recent commissioning.
“When combined with additional refining capacity from several other refineries, vessel movements in Nigerian waters would increase dramatically,” Ademuyiwa said, urging policymakers to position Nigerian shipping companies and ports to benefit from the expected surge in maritime activities.
Breaking down rough estimates based on industry trends, Ademuyiwa projected that the BUA Refinery, which has a smaller capacity than Dangote’s 650,000 barrels-per-day facility, could generate between 200 and 300 vessel movements yearly. He further estimated that two to three modular refineries with capacities ranging from 50,000 to 100,000 barrels per day could add another 100 to 200 vessel movements annually.
“Nigeria could be looking at between 950 and 1,150 vessel movements yearly,” Ademuyiwa stated, while cautioning that the actual number would depend on several factors, including production levels at individual refineries, export demand, vessel sizes, global market conditions, and the capacity of port infrastructure to handle increased traffic.
The projections highlight the scale of economic opportunity within Nigeria’s maritime domain, particularly as the country transitions from being a major importer of refined petroleum products to a potential regional exporter. For decades, Nigeria’s inability to refine crude oil domestically forced the country to rely on imported fuel, a situation that drained foreign exchange reserves and left the maritime sector underutilised despite the nation’s extensive coastline and strategic location along the Gulf of Guinea.
Tajudeen Alao, National President of the Nigeria Association of Master Mariners (NAMM), described the Dangote refinery as a major driver of wealth creation, noting that its location on the open sea provides Nigeria with a strategic advantage for exports and maritime trade. Alao pointed to existing laws on vessel ownership and crewing as frameworks that already support Nigerian participation in maritime activities, while cabotage rules reinforce domestic involvement in cargo transport.
“Nigerian-owned and operated vessels would retain taxable income within the country, thereby preventing revenue losses associated with foreign vessels carrying Nigerian cargo,” Alao said, stressing that stronger enforcement of existing maritime laws would enable Nigeria to fully benefit from its maritime domain and resources.
The cabotage regime, introduced through the Coastal and Inland Shipping (Cabotage) Act of 2003, was designed to reserve domestic shipping for Nigerian-flagged vessels owned and operated by Nigerian companies. However, enforcement has been inconsistent, with foreign vessels continuing to dominate coastal and inland shipping operations due to waivers granted by regulatory authorities, often citing insufficient local capacity.
Alao also highlighted the refinery’s deep-water access as a critical asset for supporting coastal shipping and shuttle services to ports across Nigeria, including Port Harcourt, Warri, Calabar, and Lagos. He urged policymakers to prioritise the evacuation of refined products by sea rather than relying heavily on road transport, which has contributed to the deterioration of highway infrastructure and increased logistics costs.
“Products can be shipped to coastal depots, discharged into tank farms and then distributed inland by trucks,” Alao explained, noting that Nigeria’s existing network of tank farms makes marine transportation safer, more efficient, and more cost-effective than road haulage alone.
He illustrated the efficiency gains by comparing maritime and road transport capacity, explaining that a 5,000-tonne tanker can carry the equivalent of approximately 150 trucks, each transporting roughly 30 tonnes, and can be loaded within 12 to 18 hours. In contrast, the same volume moved by road would require numerous truck trips over several days, contributing to congestion in port cities and accelerating road degradation.
Captain Michael Ifesemen, a master mariner and maritime expert, echoed these views, stating that the Dangote Refinery has opened vast opportunities for maritime jobs, port operations, and local shipping participation driven by the influx of vessels and increased marine activities. Ifesemen emphasised the role of marine transportation in evacuating Dangote products, noting that moving products by sea would reduce pressure on roads and lower government expenditure on repairs necessitated by heavy-duty trucks.
“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,” Ifesemen said, highlighting the multiplier effects across the maritime value chain.
He acknowledged that while international vessels currently dominate operations at the refinery, Nigerian participation is expected to increase in the medium term as regional distribution networks expand and local capacity improves. The development of domestic shipping capacity, however, will require targeted investment in vessel acquisition, crew training, and port infrastructure, alongside regulatory reforms that ensure compliance with international maritime standards.
The anticipated surge in vessel traffic also presents significant opportunities in ancillary maritime services. Mandatory procedures such as tanker vetting, ship inspection reports, and compliance checks create openings for Nigerian mariners, surveyors, and inspectors. These technical roles are essential to ensuring that vessels calling at Nigerian ports meet international safety and environmental standards, particularly given the sensitive nature of petroleum product transportation.
Beyond direct shipping and port operations, the increased maritime activity is expected to stimulate demand for ship chandling, bunkering services, marine insurance, towage, pilotage, and maritime legal services. Each of these sectors represents a potential source of employment and revenue, provided Nigerian companies are adequately equipped and positioned to compete for contracts.
The broader context of Nigeria’s refining sector adds urgency to stakeholder calls for policy action. The Dangote Refinery, located in the Lekki Free Zone in Lagos State, is the largest single-train refinery in the world and represents a multi-billion-dollar investment aimed at ending Nigeria’s dependence on imported fuel. Its operations have already begun to shift the dynamics of West African petroleum trade, with the facility supplying diesel, aviation fuel, and petrol to both domestic and regional markets.
The BUA Refinery, also under development, and several modular refineries scattered across the Niger Delta, are expected to add to the country’s refining capacity, further reducing import dependence and potentially positioning Nigeria as a net exporter of petroleum products. This transformation has profound implications for the maritime sector, which stands to benefit from the increased movement of crude oil feedstock to refineries and the export of refined products to regional and international markets.
However, realising these opportunities will require coordinated action across government agencies, private sector players, and maritime institutions. Stakeholders have consistently pointed to weak enforcement of cabotage laws, inadequate investment in local shipping fleets, and bureaucratic inefficiencies as obstacles to maximising Nigeria’s maritime potential. Without deliberate policy interventions, much of the freight revenue generated by the refinery operations could continue to flow to foreign-owned vessels and international shipping companies.
The Federal Ministry of Marine and Blue Economy, established in 2023 as part of President Bola Tinubu’s administration, has been tasked with developing Nigeria’s maritime and aquatic resources.
