By Tobi Awodipe
Businesses incur a yearly loss of N2.5 trillion due to port inefficiencies and an infrastructure deficit, a report by the Lagos Chamber of Commerce and Industry (LCCI) has said.
At the LCCI stakeholders’ forum in Lagos, LCCI president, Gabriel Idahosa, described Nigeria’s ports as some of the costliest in West Africa.He submitted that the situation has far-reaching consequences on trade, investment and the general cost of doing business in the country.
He noted that inefficiencies at the ports, ranging from congestion to poor infrastructure and lack of automation, have driven up operational costs and discouraged investments, especially at a time when Nigeria should be maximising the opportunities under the African Continental Free Trade Area (AfCFTA).
“One of the most pressing challenges is the persistent congestion and delays, particularly at the Apapa and Tin Can Island ports in Lagos. These facilities are frequently overwhelmed, resulting in extended cargo dwell times and high demurrage charges, which ultimately raise the cost of goods and undermine the competitiveness of Nigerian exports.
Administrative bottlenecks further compound these problems. The continued reliance on manual procedures and complex bureaucratic systems has led to unnecessary delays and opened the door to corrupt practices. Therefore, doing business at Nigerian ports can be more expensive than in neighbouring West African countries,” he said.
Decrying the vast infrastructure deficits, he pointed out that most port facilities are outdated, lacking connectivity with road, rail and inland waterway systems, which limit the efficient movement of cargo and contribute to delays and high logistics costs.
On insecurity, he said, the Gulf of Guinea has seen persistent threats from piracy and maritime crime, posing dangers to vessels and driving up insurance costs.He stated that the risks discourage international shipping lines and foreign investors from fully engaging with Nigerian ports.
“Singapore stands out with its highly advanced port infrastructure and logistics systems, handling about 37.5 million twenty-foot equivalent units (TEUs) each year. The success of its National Single Window (NSW) system has been instrumental in expediting cargo clearance and minimising delays.
“In the Netherlands, the Port of Rotterdam showcases the power of automation and digital transformation. The port has significantly improved operational speed and turnaround efficiency by incorporating autonomous cranes and vehicles.
“Similarly, Shanghai, China, handles over 43 million TEUs annually. Its investments in deep-water port infrastructure and seamless logistics integration have positioned it as a global leader in maritime trade which Nigeria can learn valuable lessons from,” he said.
Calling for a full digitalisation of port operations, he urged the government to reduce human intervention to the barest minimum, minimise corruption and foster public-private partnership (PPP) to attract much-needed investment and technical expertise for infrastructure upgrades.
Chairman, LCCI Public Affairs and Advocacy Committee, Ladi Smith, decried the slow cargo clearance process in Nigerian ports which, he said, averages 14 to 20 days, compared to under 24 hours in leading global ports.
He attributed the delays to poor infrastructure, cumbersome customs procedures and weak intermodal logistics, urging urgent reforms to improve competitiveness.
In a keynote address presented on behalf of the Executive Secretary of the Nigerian Shippers’ Council (NSC), Magareth Ogbonna stressed that Nigeria’s port charges are 30 to 40 per cent higher than the regional average.
She said the NSC is developing a Port Pricing Index to increase transparency and benchmark cost-effectiveness, adding that dwell times of 18–20 days at Nigerian ports, compared to the global standard of three to five days, remain a major trade barrier.
“Trade facilitation thrives in an environment of transparency, predictability and cost-efficiency. Our ports must reflect these values to remain competitive under AfCFTA,” she said.
She also disclosed that NSC is advocating for multimodal cargo evacuation, increased use of inland dry ports, and full implementation of the NSW to fast-track cargo processing and reduce dependence on road transportation.
On its part, the Nigerian Ports Authority (NPA), represented by General Manager, Seyi Akinyemi, said the agency has commenced port modernisation projects across the Apapa and Tin Can corridors, including infrastructure upgrades and automation of terminal operations.
He stated that the NPA is collaborating with the International Maritime Organisation (IMO) to implement a Port Community System, improve internet connectivity at the ports, and integrate security systems, noting that Nigeria currently enjoys a Level One ISPS rating.
He also disclosed that Export Processing Terminals (EPTs) have been established in Lagos to boost non-oil exports, while ongoing efforts to digitize export procedures to further reduce delays and human interference are ongoing.
The forum identified poor coordination among port agencies, inconsistent regulations, corruption and inadequate infrastructure as the major challenges facing Nigerian ports and called for stronger cooperation between the government and private sector to address the long-standing inefficiencies that have continued to affect trade and economic growth in Nigeria. LCCI warned that if Nigeria’s ports continue to perform poorly, the country risks being left out of AfCFTA benefits.
