Opinion
We Need More Ports
The Olu of Warri, His Majesty, Ogiame Ikenwole, last week, led a delegation of members of his kingdom to Abuja for a meeting with President Muhammadu Buhari. One of the appeals he made to the Federal Government was to hasten action on the rehabilitation of Warri and Koko ports in Delta State so as to minimise the incidence of restiveness and rejuvenate economic activities in the area. He decried the deplorable state of the ports which he said had been abandoned by successive governments.
The royal father, no doubt, spoke the minds of many Nigerians who constantly wonder why many seaports in the country had been left to rot away. From Calabar, Port Harcourt, Warri, Burutu, the story is the same – collapsed infrastructure, unutilised ports.
The resultant effect is little or no economic activities in the once busy areas that were sources of income for many. Many people who had business ventures around these ports have long closed shops as nothing was happening there.
With the death of these ports, millions of Nigerians are left with only Apapa and Tin Can ports in Lagos State for their port related businesses.
We all know the problem associated with these ports for many years. These ever busy ports are reputable for congestion which seems to have defiled all solutions. Almost on daily basis, heavy duty trailers and other vehicles stuck on the highway for several hours, thereby impeding free flow of traffic, due largely to deplorable state of the roads.
Recently, I was in a group going to Badagry for a conference. On getting to Oshodi/ Apapa Road, we met a traffic jam that kept us on the road for almost 10 hours. A sick man in an ambulance on emergency was reported to have died in the traffic not too long ago. Other road users and people who leave and do business in the ports axis had similar ugly stories to tell.
These and other unfavourable conditions some believe, have forced many importers and exporters to abandon Lagos ports for Cotonou in Benin Republic. Nigeria, therefore, loses billions in revenue while Benin Republic gains from our loss.
In view of all these embarrassing challenges, it is difficult to phantom why the government has not considered rejuvenation of other existing ports and probably opening up new ones as a permanent solution to the problem.
Why can’t Port Harcourt, Calabar, Warri and other seaports in the Niger Delta be made functional so as to reduce the pressure on Lagos ports and also help the economy of these areas to grow? Is it too much to make these ports functional and mop up a lot of idle youths from the streets and thereby minimise restiveness in the area as the royal father suggested?
If these ports are not so deep to accommodate bigger ships, why not dredge them, divert ships to them, reduce congestion in Lagos and stimulate the economy of these cities and the country in general?
It’s so worrisome that oftentimes our leaders and policy makers know the right things to do to move the nation forward but they will fail to do them due to some selfish, ethnic and greedy considerations. Who among our leaders, both past and present, does not know that it is most unreasonable concentrating all imports and exports in one port? What have they done about it?
Sometime ago, we were told of plans to dredge waterways and reinforce riverbanks to increase the capacity of inland waterways in places like Onitsha and others. What has happened to such lofty plans?
The fact still remains that we cannot continue to do things wrongly and expect a better result. We cannot continue to concentrate all imports in Lagos and expect less congestion and free roads.
A few weeks ago, news report had it that the Lagos State Government, through Amuwo Odofin Local Government Area, will end gridlock on Oshodi/Apapa Road by December this year. How can this be achieved with the current state of congestion at the Lagos ports? How can the roads be free if people from all parts of the country continue to throng to Apapa Port to clear their goods?
It’s high time the right thing was done. We need to make the idle ports in the Niger Delta fully functional and save the situation.
I once read about Ibaka Seaport in Akwa Ibom State. This seaport, if approved and completed, I learnt, can receive super-heavy vessels. It requires no dredging as it opens straight into the ocean and could double as Navy and commercial hub.
Why can’t government consider the approval and opening of this and other ports in the South South and South East and save importers in these areas the trouble of constantly travelling to Lagos to transact their businesses? With the proper will and drive, this can be achieved for the benefit of the nation.
Calista Ezeaku
From all indications, Nigeria possesses enough human and material resources to become a true economic powerhouse in Africa. According to the National Population Commission (NPC, 2023), the country’s population has grown steadily within the last decade, presently standing at about 220 million people—mostly young, vibrant, and innovative. Nigeria also remains the sixth-largest oil producer in the world, with enormous reserves of gas, fertile agricultural land, and human capital.
Yet, despite this enormous potential, the country continues to grapple with underdevelopment, poverty, unemployment, and insecurity. Recent data from the National Bureau of Statistics (NBS, 2023) show that about 129 million Nigerians currently live below the poverty line. Most families can no longer afford basic necessities, even as the government continues to project a rosy economic picture.
The Subsidy Question
The removal of fuel subsidy in 2023 by President Bola Ahmed Tinubu has been one of the most controversial policy decisions in Nigeria’s recent history. According to the president, subsidy removal was designed to reduce fiscal burden, unify the foreign exchange rate, attract investment, curb inflation, and discourage excessive government borrowing.
While these objectives are theoretically sound, the reality for ordinary Nigerians has been severe hardship. Fuel prices more than tripled, transportation costs surged, and food inflation—already high—rose above 30% (NBS, 2023). The World Bank (2023) estimates that an additional 7.1 million Nigerians were pushed into poverty after subsidy removal.
A Critical Economic View
As an economist, I argue that the problem was not subsidy removal itself—which was inevitable—but the timing, sequencing, and structural gaps in Nigeria’s implementation.
- Structural Miscalculation
Nigeria’s four state-owned refineries remain nonfunctional. By removing subsidies without local refining capacity, the government exposed the economy to import-price pass-through effects—where global oil price shocks translate directly into domestic inflation. This was not just a timing issue but a fundamental policy miscalculation.
- Neglect of Social Safety Nets
Countries like Indonesia (2005) and Ghana (2005) removed subsidies successfully only after introducing cash transfers, transport vouchers, and food subsidies for the poor (World Bank, 2005). Nigeria, however, implemented removal abruptly, shifting the fiscal burden directly onto households without protection.
- Failure to Secure Food and Energy Alternatives
Fuel subsidy removal amplified existing weaknesses in agriculture and energy. Instead of sequencing reforms, government left Nigerians without refinery capacity, renewable energy alternatives, or mechanized agricultural productivity—all of which could have cushioned the shock.
Political and Public Concerns
Prominent leaders have echoed these concerns. Mr. Peter Obi, the Labour Party’s 2023 presidential candidate, described the subsidy removal as “good but wrongly timed.” Atiku Abubakar of the People’s Democratic Party also faulted the government’s hasty approach. Human rights activists like Obodoekwe Stive stressed that refineries should have been made functional first, to reduce the suffering of citizens.
This is not just political rhetoric—it reflects a widespread economic reality. When inflation climbs above 30%, when purchasing power collapses, and when households cannot meet basic needs, the promise of reform becomes overshadowed by social pain.
Broader Implications
The consequences of this policy are multidimensional:
- Inflationary Pressures – Food inflation above 30% has made nutrition unaffordable for many households.
- Rising Poverty – 7.1 million Nigerians have been newly pushed into poverty (World Bank, 2023).
- Middle-Class Erosion – Rising transport, rent, and healthcare costs are squeezing household incomes.
- Debt Concerns – Despite promises, government borrowing has continued, raising sustainability questions.
- Public Distrust – When government promises savings but citizens feel only pain, trust in leadership erodes.
In effect, subsidy removal without structural readiness has widened inequality and eroded social stability.
Missed Opportunities
Nigeria’s leaders had the chance to approach subsidy removal differently:
- Refinery Rehabilitation – Ensuring local refining to reduce exposure to global oil price shocks.
- Renewable Energy Investment – Diversifying energy through solar, hydro, and wind to reduce reliance on imported petroleum.
- Agricultural Productivity – Mechanization, irrigation, and smallholder financing could have boosted food supply and stabilized prices.
- Social Safety Nets – Conditional cash transfers, food vouchers, and transport subsidies could have protected the most vulnerable.
Instead, reform came abruptly, leaving citizens to absorb all the pain while waiting for theoretical long-term benefits.
Conclusion: Reform With a Human Face
Fuel subsidy removal was inevitable, but Nigeria’s approach has worsened hardship for millions. True reform must go beyond fiscal savings to protect citizens.
Economic policy is not judged only by its efficiency but by its humanity. A well-sequenced reform could have balanced fiscal responsibility with equity, ensuring that ordinary Nigerians were not crushed under the weight of sudden change.
Nigeria has the resources, population, and resilience to lead Africa’s economy. But leadership requires foresight. It requires policies that are inclusive, humane, and strategically sequenced.
Reform without equity is displacement of poverty, not development. If Nigeria truly seeks progress, its policies must wear a human face.
References
- National Bureau of Statistics (NBS). (2023). Poverty and Inequality Report. Abuja.
- National Population Commission (NPC). (2023). Population Estimates. Abuja.
- World Bank. (2023). Nigeria Development Update. Washington, DC.
- World Bank. (2005). Fuel Subsidy Reforms: Lessons from Indonesia and Ghana. Washington, DC.
- OPEC. (2023). Annual Statistical Bulletin. Vienna.
By: Amarachi Amaugo