Dangote Group is turning to China, the world’s largest shipbuilding country in its drive to increase annual vessel movements from about 300 currently to nearly 1,800, according to reports monitored by Business A.M.
An expansion plan to increase the Dangote Refinery to 1.4 million barrels per day (bpd), from the current 700,000 bpd, and the Dangote group’s wider industrial operations drives the bid to increase its annual vessel movements from about 300 to nearly 1,800 by 2029.
China’s shipyards deliver roughly 1,000 to 1,700 commercial and ocean-going ships annually, leading the global shipbuilding industry by a massive margin. By total deadweight tonnage, China produced 57 percent of all new commercial ships globally. Also, Chinese shipyards hold nearly 60 percent of all new global ship orders.
Dangote Group says is turning to China, to acquire new vessels for its maritime expansion. The group’s flagship refinery in Lekki Free Zone (LFZ), Lagos is doubling its capacity to 1.4 million bpd by 2029, as part of a $14.3 billion expansion programme.
The group’s industrial growth will require more shipping of refined products, petrochemicals, fertilizer, cement, and other goods across Africa and internationally.
According to group vice president for oil and gas, Devakumar Edwin, the Dangote Group is preparing for a sharp increase in the number of cargo movements it handles annually, with shipments expected to rise from current 300 deadweight tonnage to as many as 1,800.
Edwin informed recently at the Nigeria Chamber of Shipping’s 2026 members’ evening in Lagos, that the scale of the expected increase calls for more financing to help develop Nigeria’s indigenous shipping industry.
The group’s vice president for oil and gas, said, apart from the expected rise in petroleum products vessel movement, additional cargo will come from Dangote’s expanding cement, sugar, flour, refining, fertiliser and petrochemical businesses.
The decision by Dangote to buy ships was informed by the group’s recent struggling to move cement from Nigeria to Ghana.
The group’s push for new vessels came as its flagship refinery enters a new phase of expansion, potentially transforming Dangote from one of Africa’s biggest industrial producers into perhaps a larger player in the world’s maritime trade.
China’s position as the world’s leading shipbuilder makes it a natural destination for Dangote as the group prepares to expand its maritime capacity.
According to data from the United Nations Conference on Trade and Development (UNCTAD), China’s shipyards accounted for 54.6 percent of global shipbuilding output in 2024, more than South Korea and Japan combined. China also held nearly two-thirds of the global shipbuilding orderbook at the start of 2025.
Dangote’s refinery, currently operating capacity of 700,000 barrels per day, plans to double this to 1.4 million bpd by 2029 in a $14.3 billion expansion programme. The expansion will also increase its petrochemicals output and strengthen its ability to supply refined products to markets across Africa and beyond.
The group’s growing export and distribution network means more crude, more refined petroleum products, more fertiliser, cement and other industrial goods will need to be moved by sea.
Edwin said the group is however, exploring new vessels, including ships that could be built in China, as it prepares for the expected increase in cargo volumes.
Initially, Dangote Industries Limited was considering acquiring vessels to move products from Nigeria to West and Central Africa, after struggling to secure shipping capacity for a 1,000-metric-tonne shipment to Ghana.
Africa’s road transport is about the world’s most costly, with taxes in countries such as Benin and Togo, which combine to raise the cost of Nigerian exports.
According to Aliko Dangote, president of Dangote Group, it costs more to ship from Lagos port to Accra than from Spain to Lagos.
This move highlights a deep gap in Nigeria’s uncharted maritime industry. While Dangote can generate the cargo needed to support a large fleet, Nigerian shipowners often lack the vessels and financing required to capture the business.
“Without assured cargo and supporting infrastructure, new vessel owners struggle; and businesses fail, even when finance is available,” Edwin vice president for oil and gas at the Dangote group said, calling for lenders to support the wider shipping ecosystem, including vessel management, insurance, regulatory approvals and long-term charter agreements.
Nigeria’s maritime sector underperforms, lacking complete legislative backing, strong local shipping capacity, and fast inland transport connections.
Maritime sector watchers say, for Dangote, building or acquiring a larger fleet would give the group greater control over the movement of its products as its Nigerian and wider African operations expand.
This strategy also comes as the group opened its $1.63 billion refinery’s initial public offering (IPO), with proceeds expected to support its wider expansion plans.
