Opinion
As Onitsha Port Comes Alive…
 
																								
												
												
											One can imagine the joy of Onitsha indigenes and residents when the city’s river port received light cargo barges with containers last weekend. It was a history made and a long-awaited dream fulfilled. Although the National Inland Waterways Authority (NIWA) said the exercise was just to test-run the activities in the port with the hope of full port operations commencing in the first quarter of 2021, the people of the commercial town and other South Easterners are elated that the project which was muted 37 years ago by former President Shehu Shagari, is finally becoming a reality.
Kudos must be given to the current administration of President Muhammadu Buhari for injecting life into the project and not continuing with the unnecessary politics and excuses that had put it on hold for almost four decades. It shows that the president understands that government is a continuum; that the fact that one is not the initiator of a project doesn’t mean it should be abandoned, especially when it is a lofty project that will impact greatly on the people as is commonly seen across the country.
The importance of Onitsha River Port cannot be overemphasised. Onitsha is a commercial city with many importers and exporters who cross a lot of hurdles travelling to Lagos to clear their goods. Many lives and goods have been lost in the process. The coming on stream of Onitsha Port means they will be saved from such troubles as their goods will be cleared in Onitsha. That will definitely create job opportunities for the people, impact greatly on the economy of not only the state but the entire region. Borrowing the words of the Managing Director of NIWA, Chief George Moghalu, “There is no doubt that the full operation of the River Port will boost economic activities in Anambra State and the South East in general, create jobs and wealth for our teeming youths, reduce the usual bottleneck in clearing goods and save money wasted in transporting containers from different ports in the country to the South East. It will also decongest our ports in Lagos and reduce the pressure on our roads.”
Why a country of about 200 million people would choose to concentrate all imports and exports in two ports and in one part of the country, allowing seaports in other parts of the country to die, still baffles many. In Calabar, Port Harcourt, Warri and 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.
One can recall the immediate past Governor of Lagos State, Akinwunmi Ambode, at the twilight of his administration, appealing to the Federal Government to ensure that seaports in other parts of the country become functional as a way of decongesting Apapa Ports. He argued that besides helping the government to save funds spent on managing the traffic and regular repair of roads damaged by articulated vehicles, this will end the gridlock caused by trucks and trailers on the Apapa-Oshodi route.
Similarly, while leading a delegation of members of his Kingdom to Abuja for a meeting with President Buhari recently, the Olu of Warri, His Majesty, Ogiame Ikenwoli, appealed to the federal government to hasten action on the rehabilitation of Warri and Koko ports in Delta State 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 the government, noting that the very good and solid ports were left unused.
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 daunting problems associated with these ports said to be currently handling about 80 percent of all shipping traffic in the country. These ever busy ports are reputed for congestion which seems to have defied all solutions.  Almost daily, heavy duty trailers and other vehicles stuck on the highway for several hours, thereby impeding free flow of traffic. The deplorable state of the roads does not help the situation at all.
These and other unfavorable 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.
Let’s, therefore, hope that with the inauguration of Onitsha River Port, due consideration will also be paid to the rejuvenation of other existing ports and probably opening up new ones. Let us hope that Port Harcourt, Calabar, Warri and other seaports in the Niger Delta will be made functional without further delay as to reduce the pressure on Lagos ports and also help the economies of these areas to grow?  If these ports are not so deep to accommodate bigger ships as always claimed, why not dredge them and divert ships to them?
I once read about Ibaka seaport in Akwa Ibom State. It is said that this seaport, if approved and completed, can receive super-heavy vessels. It requires no dredging as it opens straight into the ocean and could double as a Navy and commercial hub. It is high time the government considered the approval and opening of this and other ports in the South South and South East and reduce the influx of people to Lagos. This will give the people of these zones a sense of belonging.
As has already been pointed out by many, efforts should be made to secure the waterways against piracy and other security threats so that Onitsha and the other river ports can function optimally. Not forgetting some experts’ view that for a ship to arrive and berth in Onitsha, there is need to properly dredge the river from the Atlantic Ocean to Onitsha and other inland river ports. Efforts towards achieving this will make the excitement of Onitsha residents and the entire people of the South East zone not to be short-lived.
Calista Ezeaku
Opinion
A Renewing Optimism For Naira
 
														Opinion
Don’t Kill Tam David-West
 
														Opinion
Fuel Subsidy Removal and the Economic Implications for Nigerians
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
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