The Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, says that the Authority’s $1 billion port modernisation programme is driven by the need to address obsolete infrastructure, congestion and inadequate automation that has cost Nigeria over N1 trillion annually.
Speaking at a one-day conference organised by the League of Maritime Editors (LOME) in Lagos, Dantsoho said that the modernisation, particularly at the Apapa and Tin Can Island Ports in Lagos, was aimed at reversing the declining competitiveness of the Nigerian ports and addressing the disproportionate distribution of cargo between the country’s seaports and those of neighbouring West African countries.
Presenting the paper titled “Port Modernisation: Its Impact on the Maritime Industry”, the NPA boss, who was represented at the event by the General Manager, Strategic Planning, NPA, Engr. Seyi Iyawe, Dantsoho stated that Nigeria controls over 60 per cent of West Africa’s Gross Domestic Product (GDP), yet only about 25 per cent of regional cargo passes through its seaports.
He said the port modernisation programme was therefore designed to address the structural imbalance and enable Nigeria to take advantage of its economic position within the region.
“Nigeria loses over N1 trillion yearly to a lack of port automation and modern infrastructure, as congestion, delays and administrative rigidities increase logistics costs and discourage shipping lines.
“Without these reforms, Nigeria’s 60 per cent West Africa GDP advantage remains uncaptured,” he said.
The NPA managing director disclosed that Nigeria lost over 56 million metric tonnes of cargo between 2014 and 2022, as well as N130 billion annually in Customs revenue.
Dantsoho attributed the loss of cargo to the age and limitations of critical port infrastructure, noting that the Apapa Port was established nearly 100 years ago, while the Tin Can Island Port is more than 50 years old.
He said that Apapa has a draught of about 13 metres, while Tin Can has about 11 metres, making both ports less competitive than some neighbouring facilities.
He explained that the Port of Lomé in Togo has a draught of 16.6 metres, handled about two million Twenty-foot Equivalent Units (TEUs) in 2024 and recorded a nine-day cargo dwell time.
The Port of Tema in Ghana, he added, has a draught of over 16 metres and operates an automated scanning system.
Dantsoho said the limitations at the Nigerian ports had contributed to prolonged cargo dwell time, which stood at between 18 and 21 days at Apapa and Tin Can, compared with the global benchmark of four days.
“This represents 475 per cent above the global four-day benchmark,” he said.
He also said port charges in Nigeria were between 30 and 40 per cent higher than those of regional competitors such as Lomé and Tema.
The one-day conference has the theme, “Lagos/Eastern: How to Reverse Existing Imbalance in Disproportionate Cargo Vessel Calls.”
GIK/APA