Two years into President Bola Ahmed Tinubu’s administration, the maritime sector has witnessed an overhaul, although challenges persisted. ADAKU ONYENUCHEYA and ABIGAIL IKHAGHU access reforms in the industry and their impacts on the country’s maritime trade.
When President Bola Tinubu assumed office on May 29, 2023, Nigeria’s maritime industry was grappling with series of endemic challenges, including congested ports, outdated infrastructure, slow cargo clearance processes, insecurity in the Gulf of Guinea and a lack of modernisation, as shippers and investors increasingly viewed the nation’s waters as costly and inefficient.
Other challenges such as the high cost of port operations, lack of functional rail connections to inland dry ports, and inter-agency rivalries still hinder seamless maritime trade as critics argued that without stronger enforcement and accountability mechanisms, reforms instituted may stall.
Stakeholders outlined several suggestions for the President to ensure an effective maritime sector as the country was losing money and its position as a maritime hub in West Africa, despite having 70 per cent of the cargo destined for West and Central Africa.
The stakeholders emphasised on addressing the age-long challenges, which include infrastructure upgrades, acquisition of modern cargo handling equipment, deployment of smart technologies across ports, and disbursement of the long-awaited Cabotage Vessel Financing Fund (CVFF) to empower indigenous ship owners to compete in global trade.
The House of Representatives in 2023, lamented that inefficiencies of the nation’s seaports were costing Nigeria estimated $7 billion losses yearly, while a report by the Lagos Chamber of Commerce and Industry (LCCI) early this year stated that the businesses incurred a yearly loss of N2.5 trillion due to port inefficiencies and an infrastructure deficit.
Another issue affecting the maritime sector was lack of attention as it was under the Ministry of Transportation, competing for budget with road and railway, but was neglected.
After assuming office, Tinubu began his economic reform by separating the maritime sector from the Ministry of Transportation, a move stakeholders applauded and hoped for a better industry in West Africa.
Interventions and reforms
THE President has introduced several significant interventions and achieved notable milestones in the nation’s maritime sector, aligning with his “Renewed Hope Agenda” and the $1 trillion economy.
The President’s reforms created the Federal Ministry of Marine and Blue Economy in August 2023, headed by Adegboyega Oyetola, to harness the sector’s vast economic potential and resources.
The maritime sector has, for decades, been without a dedicated sector to cater for its activities as was under the Ministry of Transportation without little focus on prioritising affairs of the sector.
Tinubu prioritised the maritime sector’s contribution to Nigeria’s economic recovery and growth, which is projected to reach $15.5 trillion globally by 2050 and $405 billion in Africa by 2030.
This move aimed to tap into Nigeria’s vast coastline, strategic location and maritime resources that have been undermined, to drive economic diversification and prosperity.
The ministry has since developed a comprehensive National Blue Economy Strategy Plan, in collaboration with international partners like the World Bank and AU-IBAR, outlining a 10-year roadmap for sectoral growth.
The ministry also provided a focused framework for addressing longstanding challenges in the sector, enhancing competitiveness and aligning with the African Continental Free Trade Area (AfCFTA) to boost regional trade.
On port infrastructure development, the country had battled with poor infrastructure, with the quay apron of some ports in a deteriorating state. Tinubu’s administration initiated comprehensive rehabilitation projects worth $1 billion for major ports, including Tincan Island, Apapa, Rivers, Onne, Warri, and Calabar Port Complexes, aimed at modernising infrastructure and improving operational efficiency.
The upgrades at Lagos and Onne ports are expected to increase cargo handling capacity by over 30 per cent, reducing turnaround times and enhancing competitiveness. Already APM Terminals has completed the rehabilitation of Apapa port quay apron under the PPP model.
Also recognising the inefficiencies plaguing the nation’s ports, the Tinubu administration prioritised their modernisation, with plans to deepen port drafts to accommodate larger vessels.
Additionally, new port projects are underway in locations such as Badagry, Ilaje, and Ibaka, aiming to decentralize maritime activities and boost regional economies.
For digital transformation to streamline port operations and reduce bureaucratic bottlenecks, the government launched digital platforms like the National Single Window (NSW) and the Port Community System (PCS) aimed to centralise and automate port processes, facilitating easier compliance and improving overall efficiency.
The sector-specific automated system is designed to streamline information exchange among port stakeholders, aninitiative, supported by collaboration with the International Maritime Organisation (IMO), which has laid the groundwork for a National Single Window to enhance port efficiency and trade facilitation.
Further, the Nigeria Customs Service (NCS) migrated from foreign digital trade facilitation platform to an indigenous platform, ‘B’Odogwu,’ to modernise cargo clearance procedures.
Additionally, collaborations with international countries have been strengthened to enhance maritime security and counter-terrorism efforts. The NCS and the Customs Administration of the Benin Republic, jointly deployed a digital system designed to enhance regional trade, combat diversion and fraud along the Nigeria-West Africa corridor, and eliminate bottlenecks associated with international trade.
On maritime logistics and energy initiatives, the Tinubu’s administration facilitated a joint venture between NNPC Shipping, Stena Bulk, and Caverton Marine to establish a modern, sustainable shipping fleet.
This initiative strengthened Nigeria’s crude oil and LNG transportation infrastructure, reduced reliance on foreign vessels, created jobs, and promoted sustainability through fuel-efficient vessels and advanced maritime technology.
Also was the long-awaited Cabotage Vessel Financing Fund (CVFF), which was approved by the President for disbursement August 2025 to empower local capacity in the global shipping trade with indigenous ship owners set to receive and get back to the shipping business.
The Tinubu administration facilitated international collaboration and investment to enhance the maritime sector. Notably, Nigeria secured a $600 million investment from Danish shipping giant Maersk to upgrade seaport infrastructure.
The regime also ensured the launch of the waterways transportation code to regulate the movement of waterways users and curb boat mishaps, which were becoming a normal phenomenon in the nation’s waters.
The Lagos port corridors have been decongested for decades without a solution despite government committees at the federal and state level set up to resolve the issue.
The Nigerian Ports Authority (NPA), under Tinubu’s leadership, cleared decade-long traffic gridlock on Lagos port access roads, promoting ease of doing business and supporting export activities to improve Nigeria’s balance of trade.
Also, with the integration of rail freight for cargoes from the port, the government finalised the APMT Terminal in Apapa, enabling over 105 containers to be ferried daily by rail, reducing road congestion and improving cargo evacuation efficiency.
In terms of revenue generation and economic impact, agencies in the maritime sector have reported significant improvements in revenue generation due to enhanced port operations and infrastructure upgrades.
These reforms have been praised for transforming the maritime industry and contributing to Nigeria’s fiscal recovery.The Regional Maritime Development Bank (RMDB) took off under this administration as Tinubu appointed a Nigerian as the pioneer President of the bank.
To regain Nigeria’s seat in the comity of maritime nations, Tinubu signed critical IMO conventions to align Nigeria’s maritime standards with global practices.
The NPA certified and licensed 10 Export Processing Terminals (EPTs) in Lagos and Ogun States to eliminate procedural bottlenecks, making Nigerian exports more competitive globally with the sole aim of job creation and recovered revenue previously lost to International Oil Companies (IOCs).
The Dean of Faculty at City University, Cambodia, Prof. Alfred Oniye, commended the President for what he described as a “transformative era” in Nigeria’s maritime sector, marked by decisive reforms and infrastructural development within the first two years of his administration.
Reflecting on Nigeria’s maritime trajectory under Tinubu, Oniye praised the President’s bold approach to overhauling port and shipping operations, emphasising that the administration has laid a strong foundation for long-term growth in the sector.
“President Tinubu’s two-year tenure has marked a transformative era for Nigeria’s maritime sector. His administration has prioritised infrastructure development and modernisation across our ports, while also introducing policies that improve operational efficiency and transparency,” Oniye stated.
According to the maritime policy analyst, these strategic reforms have enhanced Nigeria’s global competitiveness in maritime trade and have made the country more attractive to international shipping and investment. Oniye also highlighted the administration’s strides in maritime security, noting a significant reduction in piracy and illicit activities in Nigerian waters.
“The commitment to securing Nigeria’s maritime domain has yielded results, creating safer waters for commerce and improving the confidence of local and international stakeholders,” he added.
The professor’s comments aligned with ongoing government efforts to reposition Nigeria as a maritime hub in West Africa, with investments in port automation, customs reform, and enforcement capabilities under initiatives like the Deep Blue Project.
“These achievements underscore Tinubu’s dedication not only to the maritime industry but to Nigeria’s broader economic revitalisation,” Oniye concluded.
Challenges and criticisms
WHILE the maritime reforms have boosted revenue, broader economic challenges like inflation, foreign exchange volatility, high cost of doing business at the port, delays in policy implementation and infrastructural decay at ports, among others, continued to impact the sector’s full potential, hindering optimal performance
Nigeria has continued to witness cargoes diversion to neighbouring countries because of the high cost of doing business at the ports as well as the unfriendly regulatory environment.
The 15 per cent increase in port tariffs by the NPA, the volatile exchange rate as well as the increase in shipping and terminal charges, make import business tiring as many importers have left the business due to inability to pay back loans collected.
Also, shippers in Nigeria are currently frustrated with the ongoing volatility in the foreign exchange market, leading to cargo diversion and a significant decline in import volumes as over 70 per cent of the nation’s cargoes are discharged at ports in Benin Republic, Ghana and Togo.
Nigeria has remained without a port economic regulator, giving room for foreigners to dominate the business with excessive shipping and terminal charges without being sanctioned.
The Nigerian Port Economic Regulatory Agency (NPERA) Bill, which would give the Nigerian Shippers’ Council (NSC) legal authority to regulate the port and the maritime activities, is experiencing delay in government approval.
Stakeholders have continued to express concerns over delays in assenting to the NPERA Bill, citing potential political resistance and entrenched interests as barriers to reform.
Also, the neglect of eastern ports and logistics infrastructure has garnered criticism as critics have noted that ports like Warri and Calabar require more attention to achieve balanced development across Nigeria’s maritime infrastructure.
The National President of the Association of Nigerian Customs Brokers and President of the National Compliance Joint Task Force of Licensed Clearing Agents, Dr Basil Nwolisa, is one of the most vocal critics, painting a bleak picture of persistent dysfunction, unchecked profiteering, and systemic neglect.
Nwolisa lamented that the maritime sector is merely a reflection of the broader challenges plaguing Nigerian society.
“The maritime sector under the Tinubu administration has not improved. The maritime cannot improve more than the society itself. The society has been going through a lot — and the maritime sector too is going through a lot,” he said.
His statement cuts to the heart of an issue many insiders echoed, despite new ministry, digital platforms, and reformist rhetoric, the sector remained trapped in a broader national malaise.
While official figures tout rising revenues and modernisation, Nwolisa called them “improvements only in the figures,” disconnected from the daily experience of industry players and ordinary Nigerians.
One of the more contentious initiatives under Tinubu’s watch is the E-call-up system for trucks, launched by the Nigerian Ports Authority (NPA) in collaboration with Transit Truck Park (TTP) and the Lagos State Traffic Department.
The programme was meant to streamline traffic and reduce congestion at the ports, a perennial nightmare for freight operators and drivers. But to Nwolisa, the scheme has become a profiteering racket. “All they tend to achieve in all these things is for their own personal profit. They are doing their buffet, enjoying themselves, collecting money from hapless transporters and members of the Nigerian public.”
Inflation and policy inconsistencies are crippling the industry, Nwolisa argued. According to him, where a 40-foot container previously attracted a duty of about N7 million, brokers now faced charges as high as N14 million.
He linked these rising costs to what he described as unregulated behaviours by officials, terminal operators, and shipping companies, all of which, he claimed, acted with impunity due to weak oversight and high-level political protection.
Perhaps the most damaging part of Nwolisa’s critique was reserved for shipping companies and terminal operators, who he accused of “double taxation” and of levying demurrage fees even when their own inefficiencies delay container clearance.
“Shipping companies, which are supposed to act as shippers’ agents, are collecting demurrage. Terminal operators are collecting demurrage too. Why should shipping companies receive money for services not rendered?” he queried.
Recommendations for better sector
ADDRESSING these issues highlighted areas for further action as it required sustained political will, stakeholder engagement and continuous investment.
The administration’s commitment to the Blue Economy and stakeholder engagement suggested a continued push toward sustainable growth and global competitiveness in the maritime sector.
As the administration enters its third year, maritime stakeholders and observers will be watching closely to see how these reforms are deepened and sustained, particularly in areas of port congestion, regulatory efficiency and private sector collaboration.
Nwolisa offered a clear roadmap for reform, calling on the government to check arbitrariness among customs and port officials and regulate terminal operators more stringently, ensuring they have proper equipment and trained staff.
Others include abolishing demurrage collection by shipping companies, restricting the fee only to terminal operators tackling double taxation and eliminating bureaucratic hurdles in clearing processes.
“Government should check the system of operation that currently makes releasing goods at the terminal very difficult, making some spurious and criminal demands,” he said. Nwolisa described a system that penalised law-abiding stakeholders, rewarded connected profiteers and undermined the very reforms it claimed to support.
“These are the things that the government needs to do so that the society will have a breath of fresh air,” he noted. Stakeholders are cautiously optimistic about a better maritime industry, noting that with continued commitment to infrastructure, security, and indigenous capacity building, Nigeria’s maritime sector might yet sail into more prosperous waters.
