Business
Has Port Concession Met Stakeholders’ Expectations?
In 2006, the Federal
Government conceded Nigerian ports to 26 private terminal operators to ensure efficiency and reduce costs of doing business at the ports.
Stakeholders, conversely, note that although the aim of the concession is to improve productivity and competitiveness, little of the objectives of the exercise have been achieved.
They, nonetheless, admitted that before the concession regime, Nigerian Ports Authority (NPA) demonstrated low level of efficiency resulting in long Turn Around Time (TAT) for ships and increased cargo dwell time.
According to them, the cargo dwell time is in contrast to the 48-hour international standard to clear cargo at ports.
“The pre-concession era was also marked with over-bloated, excessive port charges and pilfering, while ports infrastructure remained in decadence.
“Nigeria’s shipping profile nose-dived with the sale of 21 ships belonging to the defunct Nigerian National Shipping Line (NNSL).
“Up till today, efforts to resuscitate the national carrier NNSL since its demise in the 90s proved abortive.
“Indigenous ship owners also groaned over lack of jobs as their ships were rendered idle, a situation which had yet to improve,’’ they observe.
They opine that conceding Nigerian ports to private operators ought to have improved services beyond the expectations of Nigerians.
In the light of this, Chief Kunle Folarin, the Chairman, Nigerian Port Consultative Council, called for an assessment of the port concession regime.
At a news conference on the Review of Port Concessioning in Lagos recently, he pointed out that in spite of the high expectations of Nigerians from the concession; little improvement had taken place at the nation’s ports.
“Corrupt practices are still prevalent among ports operators, complaints of high port charges still persist as well as lack of adequate and modern equipment by the terminal operators.
“Ships and cargo are lost to neighbouring countries because of excessive charges and access roads to the ports are in deplorable condition,’’ he said.
Sharing similar sentiments, Malam Mohammed Bashar, the Permanent Secretary, Federal Ministry of Transport, said that the port reform had not even met some expectations of government.
He noted that arbitrary and high port charges, undue delay of cargo clearance and abuses of the concession agreement were prevalent.
He explained that the purpose of the concession exercise was to encourage investors in the port sector through Public Private Participation and to reduce cost of doing business at the ports.
He explained that the government approved the concession to create jobs and ensure user-friendly port services.
Bashar, however, said that the Federal Government had made efforts to address the negative impact of port concession by appointing the Nigerian Shippers’ Council (NSC) in 2014 as the interim regulator.
He said that the NSC would establish effective regulatory regime to control tariffs, rates, charges and other related economics activities.
Assuring the stakeholders of efficient services at the ports, Mr Hassan Bello, the Executive Secretary of NSC, said that the council would address cumbersome cargo procedure, massive capital flight, leakages in revenue and inadequate information of port processes.
“Nigerian ports remain costly and uncompetitive, leading to continuous diversion of Nigerian cargo to ports in neigbouring countries,’’ he observed.
He said that the council, as the economic regulator, would abrogate some illegal costs at the ports and increase demurrage and storage free days.
He said the council had constituted quarterly meetings of customs area controllers and collaborated with the relevant agencies to clear the port access roads.
Bello said the council had also set a bench mark rate to discourage arbitrary charges and it had taken steps to ensure full automation of ports operations, vessel intelligence, cargo intelligence and risk management.
“We are working towards the enforcement of the publication of terminal operators rates as specified in the concession agreement in order to install healthy competition ,’’ he said.
This, notwithstanding, a maritime lawyer, Mr Osuala Nwagbara, opined that concession exercise was not a complete failure.
“There is no doubt that nearly10 years after the leasing of port infrastructure to private entrepreneurs in Nigeria, there had been remarkable improvement in port development and service efficiency.
“There have also been complaints by users of port services that concessionaires of Nigerian ports have not kept to the terms and conditions of the tripartite agreement between the concessionaires, Nigerian Ports Authority and Bureau of Public Enterprises,’’ he said.
Nwagbara said it was heartwarming that the role of the NSC as interim port regulator had been gazetted.
“We will look forward with zeal and great hope to invoke sanction against violations of the provisions of the lessee and the concession agreement in the port system.
Similarly, some concerned citizens hold the belief that port concession regime has encouraged increase in cargo throughput imports and exports from 44, 952 containers in 2005 to 1.2 million in 2014, while TAT had also increased.
They advise relevant authorities to address corruption and ensure that documentation processes at ports are internet technology-compliant.
According to them, the NSC, as economic regulator, must issue transparent and enforceable guidelines that will ensure the realisation and sustenance of the objectives of the port reforms.
By and large, Nwagbara advised that the NPA must perform its own obligations and monitor the concessionaires and other service providers with the enforcement of the concession agreement.
Cole writes for News Agency of Nigeria.
Aisha Cole
In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.
Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.
The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.
Nkpemenyie Mcdominic, Lagos