How weak intermodal transport system stalls trade efficiency

Cargo Ship

Nigeria’s ports remain largely disconnected from rail and inland waterways, leaving trucks to shoulder over 90 per cent of cargo freight. With the steady yearly growth in cargo volumes and container traffic, Nigeria urgently needs to close the transport infrastructure gap to tackle port congestion and high logistics costs to increase its trade competitiveness, ADAKU ONYENUCHEYA reports.

Nigeria’s maritime sector recorded a surge in trade activity in 2025, driven by increased cargo throughput, rising container traffic and a growing export footprint.

According to the 2025 Operational Performance Report released by the Nigerian Ports Authority (NPA), cargo throughput rose by 24.8 per cent, while container traffic increased by 25.7 per cent, surpassing 2.1 million twenty-foot equivalent units (TEUs).

Due to the maritime trade surge, over 90 per cent of the cargo was transported from and to the seaports via trucks, causing significant pressure on the road infrastructure.

The International Maritime Organisation (IMO) advocated the adoption of intermodal transport systems from the ports – integrating inland waterways, rail and road transport — to enhance port efficiency, reduce environmental impacts, and improve hinterland connectivity.

The global organisation also emphasised that ports must be seamlessly connected to the hinterland to reduce the gridlock caused by excessive truck traffic on port access roads.

Unfortunately, Nigeria’s current intermodal transport system remains structurally weak and operationally inefficient, with industry data showing between 90 to 95 per cent of port cargo is evacuated by road via trucks, seven per cent by inland waterways via barges and five per cent by rail.

This overdependence, according to the Sea Empowerment and Research Centre (SEREC), has resulted in chronic port congestion, high logistics costs, infrastructure degradation and loss of regional trade competitiveness.

Also, despite the existence of rail lines, inland waterways (barges) and dry ports, the absence of integration has rendered Nigeria’s system effectively monomodal.

Structural and policy gaps
Apart from Apapa port with a functional rail system, other ports across the country do not have rail connectivity.

Apapa port, which handled 26.7 per cent of the nation’s total cargo throughput, relies on trucking for cargo evacuation, with a few evacuations done via rail.

Meanwhile, Lekki Port, which handled 40.6 per cent of the nation’s total cargo throughput and Onne Port, with 19.1 per cent, are not connected to the rail system, making intermodal transport not possible.

In a policy advisory paper titled ‘Reviving Nigeria’s Intermodal Transport System for Efficient Maritime Trade/, and signed by the Head of Research at SEREC, Dr Eugene Nweke, noted that an efficient intermodal transport system is critical to maritime trade facilitation, economic growth, and regional competitiveness.

He said in Nigeria, however, the disconnect between seaports and inland logistics networks continues to undermine trade efficiency.

Nweke noted that port evacuation is heavily truck-dependent while rail connectivity to the ports is limited and underutilised.

He said inland waterways remain largely untapped while dry ports operate below capacity.

The SEREC’s paper highlighted structural challenges, including weak port–rail integration, adding that most Nigerian ports lack functional rail connectivity, limiting cargo evacuation efficiency.

The research body also highlighted the underdeveloped inland terminals, noting that dry ports and logistics hubs are not effectively linked to seaports.

Nweke explained that policy and institutional gaps remain a major factor driving this challenge.

He underscored the lack of coordinated intermodal policy, weak regulatory frameworks and limited private sector participation.

The Director of International Trade at the Maritime Researchers and Authors Association of Nigeria (MARASSON), Sunday Ademuyiwa, said nearly 90 per cent of goods entering Nigeria arrive through seaports, making the intermodal transport system a critical component of the national economy.

Ademuyiwa noted that poor infrastructure, including inadequate roads, limited rail coverage, and underdeveloped inland water transport, continues to restrict seamless cargo movements, despite the heavy reliance on maritime imports.

He noted that persistent challenges in linking ports to inland destinations continue to hamper the smooth movement of cargo across the country.

According to him, Nigeria’s major seaports – Apapa, Tin Can Island, Lekki and Onne – handle the bulk of imports, but the supporting transport infrastructure has not kept pace with growing trade volumes.

He further pointed out that inland waterways, which could serve as a viable alternative for cargo movement, remain largely underutilised despite Nigeria’s vast potential.

Economic implications
Overdependence on one mode of transport system for cargo evacuation and movement makes logistics expensive, causes congestion at the ports, puts pressure on the roads as there are no alternatives and ultimately increases the cost of doing business.
According to SEREC, high inland transport costs inflate prices of goods and reduce competitiveness, triggering cargo diversion as neighbouring ports attract cargo due to better logistics systems as well as revenue losses, with Nigeria losing billions yearly due to inefficiencies and delays.

Nweke said overdependence on road transport causes severe traffic congestion, high logistics costs, and rapid road deterioration.

Managing Director, HARSECOM Logistics Limited, Haruna Omolajomo, said Apapa and Tincan Island port complexes handle more than 70 per cent of Nigeria’s imports and exports, which sometimes leads to unnecessary or artificial congestion.

He said for decades, the two ports have the weight of the country’s national trade, yet their infrastructure has not kept pace with the scale and complexity of modern global maritime shipping.

Omolajomo said this is very sad as these two ports contribute to Customs revenue generation of over N5 trillion yearly revenue, noting that with these finances, the federal government is still finding it difficult to take even N1 trillion to improve its infrastructure.
Actionable reforms

Nigeria’s current transport system undermines its maritime potential, with experts warning that without urgent reforms, inefficiencies will persist, and the country risks losing its position as a regional trade hub.

Nweke stressed that a coordinated, multimodal transport framework is essential for sustainable economic growth and trade facilitation.

Experts proposed strategic policy recommendations from immediate actions spanning three years to medium-Term reforms within three to seven years and a long-term strategy.

On immediate action, SEREC proposed enforcement of rail connectivity to all major ports, promotion of barge operations through incentives, as well as activation and connection of inland dry ports.

For medium-term reform, the SEREC’s paper recommended liberalising rail freight operations, implementing a national single window system and developing integrated logistics corridors.

SEREC noted that for the long-term strategy, there should be a rebalance of freight modal share – such as 50 to 60 per cent road, 25 to 30 per cent rail and 15 to 20 per cent waterways.

With about 22 states interconnected by waterways, Ademuyiwa stressed that improved investment in water transport could ease pressure on roads and enhance logistics nationwide.

“Given Nigeria’s heavy dependence on maritime imports, improving intermodal connectivity is essential to unlocking economic growth,” he said.

The resulting congestion at ports, he warned, not only delays shipments but also drives up logistics costs and disrupts supply chains, with broader implications for businesses and consumers.

He called for coordinated reforms and sustained investment in transport infrastructure to improve connectivity between ports and inland markets, stressing that an efficient intermodal system is vital to enhancing Nigeria’s competitiveness in regional and global trade.

Omolajomo recommended that the railway system be revamped to connect all ports in Nigeria to stimulate a multimodal transport system.

“The same applies to the use of standard barges and tugboats. Security must be provided by the National Inland Waterways Authority (NIWA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) to make our waterways safe and secure. Maritime Regulators must do their jobs adequately,” he said.

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