Market News

BY  BAYO AKOMOLAFE

As government takes bold steps to overhaul the nation’s port system, the Nigerian Ports Authority (NPA) believes only efficiency, speed, innovation and reliability will define leadership in this new era, BAYO AKOMOLAFE reports

For decades, Nigeria’s ports have served as the primary gateway for international trade, handling over 90 per cent of the country’s cargo by volume.

Yet, inefficiency, congestion, poor infrastructure and fragmented processes have limited their competitiveness, allowing smaller economies in the region to capture a noticeable share of maritime traffic.

Nevertheless, the reality is now being confronted head-on as the Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, said at an industry stakeholders’ forum in Lagos that the nation’s ports must evolve beyond their traditional limitations to compete in a rapidly integrating African market.

Observation

Despite its size and economic weight, Nigeria’s ports currently handle only about 25 per cent of cargo traffic in West Africa, even though it accounts for more than 60 per cent of the region’s Gross Domestic Products.

Dantsoho explained that the imbalance was a clear indication that the country had not fully optimised its potential, saying that it was worrisome that Nigeria, despite controlling over 60 per cent of West Africa’s GDP, handles only about 25 per cent of the region’s cargo traffic.

However, he said that the time had come for a paradigm shift in the structure of Nigeria’s economy towards the full utilisation of the country’s marine resources. He stressed that the port system, if properly harnessed, could serve as a major driver of economic growth, saying that efficiency, not geography, would determine which countries dominate cargo flows.

Dantsoho said that Nigeria’s geographical advantage alone was no longer sufficient, noting that efficiency, speed, innovation and reliability will define leadership in this new era.

Steps

For this reasons, he noted that the NPA had begun implementing targeted upgrades at Apapa and Tin Can Island ports, focusing on berth expansion, improved cargo handling and reduced vessel turnaround time. Beyond Lagos, the government is extending the modernisation drive nationwide.

Dantsoho said that procurement processes were already underway for upgrades in Warri, Port Harcourt, Onne and Calabar ports, reflecting what officials describe as a commitment to balanced development.

Moreover, the managing director explained that the foundation for this transformation was laid early in the Tinubu administration with the creation of the Federal Ministry of Marine and Blue Economy, an institutional shift that signals a strategic rethinking of Nigeria’s economic priorities.

He noted that the ministry was designed to coordinate previously fragmented maritime functions and unlock what government estimates placed at a $3 trillion blue economy potential.

Meanwhile, the House of Representatives has approved a $1 billion loan request by President Tinubu for the rehabilitation of the Lagos Port Complex and Tin Can Island Port, two of the country’s most critical maritime assets.

The president had noted that the project was aimed at addressing critical infrastructure deficiencies accumulated over decades of operation while improving efficiency, safety and global competitiveness.

Logistics

Identifying that port efficiency extends beyond quay walls, Dantsoho also noted that government was investing in multimodal logistics to improve cargo evacuation and inland connectivity, saying that rail integration, inland dry ports, barging operations and dedicated export corridors were being expanded to ease congestion and ensure seamless movement of goods across the country.

In addition, Dantsoho said that without efficient hinterland connectivity, gains made at the ports would be difficult to sustain, an acknowledgment of the systemic challenges that have historically undermined Nigeria’s logistics chain. Also, he added that private sector participation was being encouraged, with the NPA adopting

Key initiatives include the deployment of a Port Community System (PCS) and the National Single Window platform, both designed to integrate stakeholders, streamline documentation and enhance transparency

project financing models to bridge funding gaps and accelerate development. Dantsoho stressed: “We are open to private sector participation through project financing. This approach is already improving efficiency and providing access to funding for critical infrastructure.”

The managing director expressed confidence that sustained reforms would usher Nigeria into a new phase of maritime competitiveness, saying that if initiatives could be sustained, the nation’s port system would enter a new phase and emerge as a leading maritime logistics hub in Africa.

He noted that these efforts could redefine Nigeria’s role in African trade, transforming its ports from congested gateways into efficient engines of economic growth.

Networks

Similarly, the authority’s General Manager, Corporate and Strategic Communications, Mr Ikechukwu Onyemekara, explained that the emergence of deep seaports such as Lekki Port was already reshaping Nigeria’s maritime landscape, enabling the handling of larger vessels and increasing cargo throughput, key requirements for competing in global shipping networks.

Notwithstanding, the general manager noted that infrastructure alone was not the focus of the reforms, saying that government was also pushing an aggressive digitalisation agenda aimed at eliminating inefficiencies associated with manual processes.

He added: “Key initiatives include the deployment of a Port Community System (PCS) and the National Single Window platform, both designed to integrate stakeholders, streamline documentation and enhance transparency.

According to him, the push toward a paperless, technology-driven port environment was expected to improve turnaround time, curb corruption and enhance Nigeria’s attractiveness as a logistics hub, stressing that operational reforms by the authority were also targeting reduced cargo dwell time, faster clearance processes and improved service delivery across terminals.

Last line

For a balanced and inclusive development of port infrastructure across the country, there is need for government to embark on a nationwide upgrade of all ports in order to enhance connectivity and stimulate regional economic growth.