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
The Minister of State for Industry, Trade and Investment, John Enoh said this at the 8th annual induction and conference of the Chartered Institute of Project Managers of Nigeria (CIPMN).
He explained that abandoned projects continue to lock up public funds that could have been used for infrastructure development, industrial growth, job creation and essential social services.
Represented by the ministry’s Permanent Secretary, Chris Osa Isokpunwu, he said the impact goes beyond financial losses, as incomplete projects affect communities and limit access to important public services
He cited examples of that remain unopened, schools that cannot accommodate students, roads that fail to connect communities and electricity projects that have not delivered their intended benefits.
The Registrar-General and Chief Executive Officer of CIPMN, Henry Ifeanyi Mbadiwe, also identified poor project management as a major challenge affecting development in Nigeria.
He revealed that the institute had developed a project management curriculum for Nigerian universities, which has received approval from the National Universities Commission (NUC). The programme is expected to enable universities to offer project management as a bachelor’s degree.
Mbadiwe further referenced findings by the Presidential Projects Assessment Committee, which identified 11,886 ongoing federal capital projects in 2011, with an estimated financial commitment of ?7.78 trillion.
He noted that inadequate planning, supervision, accountability and implementation were among the factors contributing to the abandonment of projects across the country.
The minister called for stronger project management structures across ministries, departments and agencies to improve planning, monitoring and evaluation.
He added that the Federal Ministry of Industry, Trade and Investment had introduced a 90-day implementation reporting cycle to strengthen transparency and monitor the progress of government programmes.
Ikenga said the company remained committed to Nigeria’s power sector and would continue investing in its operations despite the challenging business environment.
He spoke in Lagos at the third edition of the Shell Power Conference, themed “Powering Nigeria’s Progress: Turning Ambition and Action into Sustainable Impact”.
The Transcorp Power chief said the company would sustain electricity generation, invest in its facilities and deliver value to shareholders.
“Transcorp Power is a long-term player, not a short-term player. This year has been challenging, but what is important is getting power to schools, hospitals and businesses to power progress,” he said.
Ikenga said the company’s focus on operational efficiency and investment had strengthened its contribution to Nigeria’s electricity supply.
He disclosed that since acquiring the Ughelli Power Plant in Delta State in 2013, Transcorp Power had quadrupled its available generation capacity.
He also said the company became the first privatised power generation firm to receive a post-privatisation discharge certificate after fulfilling all its privatisation obligations.
The company’s unaudited results for the nine months ended September 30, 2026, showed a profit before tax of N83.1 billion, while its profit-before-tax margin rose to 31.2 per cent from 29.6 per cent recorded in the corresponding period of 2025.
Its total assets rose to 11.7 per cent amounting to N629.5 billion, while shareholders’ funds grew 8.9 per cent to N199.8 billion. Cash and cash equivalents also rose to N10.3 billion, supported by improved collections.
On the company’s contribution to grid stability, Ikenga said Transcorp Power’s black-start capability enabled it to restart operations without relying on electricity from the national grid.
He explained that the capability allowed the company to support power restoration following grid disturbances, helping to restore electricity supply to homes, businesses and industries.
Ikenga noted that Nigeria had an installed electricity generation capacity of about 13,000 megawatts, with an estimated potential of 50 gigawatts, adding that realising the potential would require effective coordination across the entire value chain.
“Everything in the value chain has to work,” he said.
He called for stronger collaboration among federal and state governments, regulators and private-sector operators, alongside increased private investment, to build a sustainable electricity market.
This was contained in a statement issued on Thursday by his Senior Special Assistant on Communications and Press Secretary, Maryann Duke.
The statement said Oyedele pointed to “improved digital systems, including electronic invoicing, as a key driver behind a record of N33tn in government revenue collected between January and October 2026.”
The minister said the performance demonstrated the potential of technology to improve revenue administration, strengthen compliance and increase efficiency across government institutions.
Speaking on the theme, ‘Digital Sovereignty and Ethics: Guarding the Economy for the Next Generation,’ Oyedele warned that Nigeria risked losing substantial economic opportunities if it continued to depend heavily on foreign digital infrastructure.
Citing Nigerian Communications Commission figures, he disclosed that the country recorded more than 157 million active internet subscriptions as of May 2026.
He explained that these connections generated significant volumes of information through financial transactions, healthcare, education and taxation.
However, citing estimates from the Nigeria Data Protection Commission, Oyedele said as much as 90 per cent of the country’s data was hosted abroad.
According to him, the situation has implications for foreign exchange expenditure, employment opportunities, technological skills and Nigeria’s control over information generated by its citizens.
He compared the country’s reliance on foreign digital infrastructure with its historical dependence on imported refined petroleum products, warning against a situation where Nigerian data would be processed abroad and the resulting services sold back to domestic users.
The minister consequently advocated greater investment in local data infrastructure, technical expertise, cybersecurity and predictable regulations to enable Nigerian businesses to capture more value from the digital economy.
He clarified that digital sovereignty should not translate into technological isolation but should strengthen Nigeria’s capacity to participate competitively in international markets.
Addressing graduating students, Oyedele urged young Nigerians to become developers of technological solutions rather than remain primarily consumers of products created elsewhere.
He identified artificial intelligence as both a disruptive force and an opportunity for innovation, advising graduates to acquire relevant digital skills alongside critical thinking, creativity, sound judgement and integrity.
The minister also cautioned against irresponsible online behaviour, explaining that digital footprints increasingly influence employment prospects, commercial relationships and professional credibility.
Oyedele outlined five priorities for graduates, including continuous learning, value creation, integrity, responsible digital citizenship and active participation in national development.
“Your degree is evidence of what you have learned. Your competence will demonstrate what you can do. Your character will reveal who you truly are,” he told the graduating students.
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