Billions Lost at the Ports: How Modernisation Can Turn Nigeria’s Fortune Around Introduction
Billions Lost at the Ports: How Modernisation Can Turn Nigeria’s Fortune Around Introduction
Nigeria’s ports are the gateways to its economy, handling over 80% of the nation’s International trade. Yet, for decades, inefficiency, congestion, and infrastructural decay have undermined their potential as regional trade hubs. The Apapa and Tin Can Island ports in Lagos, in particular, have long symbolised both the promise and the frustration of Nigeria’s maritime sector, vital yet overstressed.
However, recent modernisation initiatives signal a gradual but determined shift toward global best practices. The ongoing digitalisation of port operations, rehabilitation of facilities, and establishment of new deep-sea and inland dry ports reflect Nigeria’s commitment to improving port efficiency, competitiveness, and investor confidence.
The Challenges: Congestion, Infrastructure, and Bureaucracy
For years, Nigeria’s major seaports, especially Apapa and Tin Can Island, have battled systemic inefficiencies. Chronic congestion, caused by poor road access, limited terminal capacity, and manual documentation processes, has led to significant cargo dwell times and high operating costs for shippers. According to the African Centre for Supply Chain, Nigeria lost about US$14.2 billion annually to bottlenecks at seaports such as Apapa Port and Tin Can Island Port.1 A 2020 report by Dynamar estimated losses of US$55 million per day from port congestion and related inefficiencies.2 The Lagos Chamber of Commerce & Industry (LCCI) has estimated annual losses of around ₦2.5 trillion for businesses due to port and infrastructure inefficiencies.
A report also cites a figure of ₦7.6 trillion annually lost due to congestion at Apapa and Tin Can Island ports.4 Additionally, the multiplicity of government agencies at the ports, overlapping functions, and cumbersome inspection procedures have contributed to bureaucratic delays. This inefficiency has not only discouraged trade but has also driven up logistics costs, making Nigerian ports among the most expensive in West Africa.
Moreover, the lack of integration between seaports and hinterland logistics infrastructure, including rail and inland waterways, has further weakened supply chain connectivity and diverted trade to neighbouring ports in the Benin Republic, Ghana, and Togo.
The Modernisation Agenda: Digitalisation and Infrastructure Renewal
Recognising these challenges, the Federal Government, through the Nigerian Ports Authority (NPA) and Nigerian Shippers’ Council (NSC), has embarked on a comprehensive modernisation drive aimed at improving operational efficiency and transparency.
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Digitalisation of Port Operations:
The introduction of the electronic call-up system for trucks at Apapa helped ease road congestion, while the gradual transition to Port Community Systems (PCS) and Single Window digital platforms harmonised documentation, reduced human contact, and minimised corruption and administrative delays.
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Infrastructure Rehabilitation:
Major rehabilitation works were carried out at the Apapa, Tin Can Island, and Onne Ports, including quay strengthening, channel dredging, and berth expansion. These upgrades improved capacity for larger vessels and significantly reduced turnaround times.
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Development of Deep-Sea Ports:
The completion and commissioning of the Lekki Deep Sea Port, Nigeria’s first fully automated and privately financed deep-water port, marked a major milestone. With its 16.5-meter draft and advanced cargo-handling technology, Lekki Port decongested Lagos’ traditional ports and repositioned Nigeria as a leading maritime hub in West and Central Africa.
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Inland Dry Ports and Multimodal Integration:
Projects such as the Funtua, Dala, and Ibadan Dry Ports were developed to extend port services to the hinterland. These facilities promoted multimodal logistics, reduced transportation costs, and enhanced regional trade by integrating sea, rail, and road networks.
The Role of Policy and Private Sector Collaboration
Effective port modernisation extends beyond infrastructure; it depends on policy coherence, institutional reforms, and private sector participation. The concessioning of port terminals to private operators under the Landlord Port Model has improved efficiency in some terminals, demonstrating the value of public–private partnerships (PPPs).
Moreover, the Nigerian Customs Service (NCS) and other agencies must continue to align with the modernisation agenda through automation of clearance processes and coordinated inspections. The introduction of the Port Process Manual by the Shippers’ Council is a commendable step toward standardising procedures and ensuring accountability.
Economic Impact and Regional Competitiveness
A modern and efficient port system directly impacts Nigeria’s economic performance. Reduced cargo dwell time, faster clearance processes, and lower logistics costs enhance trade facilitation, attract foreign investment, and improve Nigeria’s ranking in the World Bank’s Logistics Performance Index (LPI).
With the African Continental Free Trade Area (AfCFTA) in full implementation, efficient ports will be central to Nigeria’s ability to compete as a manufacturing and export hub in the region. The development of deep-sea and dry ports will not only expand trade corridors but also stimulate industrial clusters and job creation in port cities and inland regions.
Conclusion
Port modernisation is no longer optional; it is imperative for Nigeria’s economic growth and trade competitiveness. While challenges remain in governance, enforcement, and infrastructure financing, the progress recorded through digitalisation, concessioning, and new port developments is encouraging. More action is expected.
Sustained investment, policy consistency, and institutional discipline will be key to ensuring that Nigeria’s ports evolve from bottlenecks into efficient trade gateways. If properly managed, the modernisation of ports such as Apapa, Tin Can Island, and Lekki Deep Sea Port will mark the beginning of a new era of maritime efficiency and regional dominance for Nigeria.
REFERENCES
[1]
https://guardian.ng/business-services/maritime/how-nigeria-loses-14-2bn-to-bottlenecks-at-ports/ accessed 1st October, 2025.
[2]
https://guardian.ng/business-services/nigeria-loses-55-million-daily-to-port-congestion/ accessed 1st October, 2025
[3]
https://guardian.ng/business-services/industry/businesses-lose-n2-5tr-to-port-infrastructure-inefficiency accessed 1st October, 2025.
[4]
https://punchng.com/port-monopoly-a-threat-to-nigerias-economic-growth/ accessed 1st October, 2025.
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