As N9.6tr yearly loss to low port capacity utilisation continues

Physical inspection of cargoes at Tin Can Island port. PHOTO: ADAKU ONYENUCHEYA

Nigeria needs to unlock the full potential of its ports, boost economic growth and trade competitively in line with the Federal Government’s executive order on ease of doing business. Unfortunately, inefficiency has continued to plague the ports despite the introduction of 24-hour operations, ADAKU ONYENUCHEYA writes.

Seven years after the signing of the Federal Government’s executive order on a 24-hour port operation policy, the goal of around-the-clock efficiency remains unachieved due to ineffective implementation despite the outcry, causing significant economic losses.

Despite the mandate, aimed at streamlining cargo clearance and boosting trade, persistent implementation failures have resulted in an estimated yearly loss of N9.6 trillion thereby rendering it uncompetitive among peers in West and Central Africa.

The Federal Government, in 2017, signed the Executive Order on Ease of Doing Business, mandating government agencies and service providers involved in cargo clearance at seaports to operate 24 hours.

The aim was to reduce costs for importers, increase cargo handling efficiency, reduce waiting times, and enhance trade facilitation. Although the Nigerian Ports Authority (NPA) and the Nigeria Customs Service (NCS) agreed to commence 24-hour port operations across the seaports, port users have yet to see any tangible changes.

Inefficiencies, delays, poor network connectivity and other challenges continue without any solution in sight. Inadequate infrastructure, security concerns, bureaucratic red tape, extortion by officials and non-state actors, lack of power supply, insufficient and unskilled manpower, long cargo dwell times and manual cargo examination processes continue to impede the efficiency and effectiveness of 24-hour port operations across the country.

Port users lament the significant losses incurred from demurrage due to delays and the inability to clear consignments within a day, which has triggered the call for urgent reforms to implement the policy and enhance efficiency in the industry.


Also, investors and importers are increasingly using neighboring ports in Togo, Benin Republic, and Ghana, costing Nigeria an estimated N130 billion yearly in diverted cargo.

The lack of electricity at the nation’s seaports forces operators to rely on diesel, contravening the International Maritime Organisation’s (IMO) call for decarbonisation in the sector.

Also, inadequate and unskilled personnel with poor staffing levels hinder efficient operations, as they lack knowledge of how to operate systems, resorting to manual processes that cause delays, extortion and congestion at the ports. Despite the deployment of mobile scanners, 100 per cent physical examinations are still ongoing, infuriating port users who seek reforms and lasting solutions.

Obstacles to 24-hour port operations
A chieftain of the Association of Nigerian Licensed Customs Agents (ANLCA), Pius Ujubonu, highlighted infrastructural deficiencies, such as poor access roads and unreliable electricity supply, as significant obstacles to sustaining 24-hour port operations.

He noted the lack of skilled manpower and inadequate policy implementation as critical challenges needing urgent attention, underscoring systemic issues within government agencies and service providers that disrupt uninterrupted service delivery.

Ujubonu also criticised the absence of night shifts at customs formations, pointing to nepotism and selfishness as factors undermining merit-based hiring practices and encouraging fragmented service delivery.

He emphasised the need for stronger regulatory oversight to promote transparency and efficiency within the industry and called for concerted efforts and policy interventions to address infrastructural deficits, enhance manpower capacity, and create a regulatory environment conducive to 24-hour port operations in Nigeria.

The National President of the Nigerian Association of Master Mariners (NAMM), Captain Tajudeen Alao, highlighted the critical importance of a constant power supply in facilitating seamless port operations.

He expressed serious reservations about the security architecture of Nigerian ports, describing it as “very poor,” and called for urgent measures to bolster security for port personnel, vessels, and cargo.

Alao further lamented the lack of conducive working conditions for port officers and stakeholders, noting the absence of suitable office facilities within port premises.


He emphasised the importance of a conducive work environment to enhance productivity and efficiency. Alao also pointed to the inadequate communication and information sharing among port agencies and stakeholders as a critical concern, stressing the role of effective communication in facilitating seamless port services.

He further called for greater investment in automation and Information Communication Technology (ICT) to streamline port processes and enhance operational efficiency, emphasising that 24-hour port operations require robust automation for continuous service delivery.

Also speaking, the Publicity Secretary of the Nigerian Shipowners Association (NISA), Gbolahan Adu, noted that effective port functioning requires skilled personnel and a supportive work environment.

He called for improvements in salary structures to incentivise and motivate port workers and for infrastructure upgrades, such as better road networks, to facilitate smoother operations.

Adu emphasised the importance of collaboration among various agencies involved in port operations to ensure seamless 24-hour service delivery. He underscored the need for a coordinated approach to address manpower challenges and mitigate potential issues in the sector, stressing that investing in human resources is essential for optimising port operations and ensuring Nigeria’s competitiveness in the global maritime industry.

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