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Oyetola: Port modernisation, regulation critical to lowering logistics costs

Minister of Marine and Blue Economy, Adegboyega Oyetola

The Minister of Marine and Blue Economy, Adegboyega Oyetola, has said the Federal Government’s ongoing efforts to modernise the country’s seaports, strengthen regulation and improve connectivity with the hinterland are critical to reducing logistics costs and driving economic growth.

Oyetola, who was represented by the Director, Inland Transport Services, Nigeria Ports Economic Regulatory Agency (NPERA), Paul Garnuwa, stated this at a transport industry forum organised by the Transport Correspondents Association of Nigeria (TCAN) in Lagos.

The forum, which focused on the theme, “Unlocking Economic Growth Through Transportation Logistics,” brought together stakeholders to examine ways of improving Nigeria’s transport and logistics system.
Oyetola said transportation logistics determined how efficiently goods moved from production centres to consumers and how effectively Nigeria connected to regional and international markets.
According to him, the cost, speed, reliability and predictability of the movement of goods have direct implications for investment, production, trade and employment.

He said the performance of Nigeria’s ports and waterways could not be considered in isolation, as they formed part of a wider logistics chain involving roads, rail, inland waterways, warehouses and distribution networks.
He said the Federal Government, with the approval of President Bola Ahmed Tinubu, had commenced preparations for what he described as Nigeria’s most ambitious seaport modernisation programme in more than five decades.
The minister said the programme would cover Apapa and Tin Can Island ports in Lagos, Onne Port, Rivers Port, Calabar Port and Warri Port.

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According to him, the programme includes the reconstruction of quay walls, deepening of channels to accommodate larger vessels, replacement of obsolete cargo-handling equipment and further digitalisation of terminal and gate operations.

He said the objective was to increase port capacity, reduce vessel and cargo-handling delays, lower logistics costs and ensure that Nigeria’s major maritime gateways remained capable of supporting modern international trade.
“Port efficiency affects the entire logistics chain. A delay at the port does not remain at the port. It affects manufacturers waiting for inputs, exporters waiting for vessels, transport operators, distributors and, ultimately, consumers,” Oyetola said.

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The minister also cited Nigeria’s improved performance in international port benchmarking, noting that the 2025 Container Port Performance Index, produced by the World Bank and S&P Global Market Intelligence, ranked Tin Can Island Port 10th and Lagos Port Complex, Apapa, 12th among the world’s 20 most improved container ports between 2020 and 2025.

He said the development was encouraging but stressed that reforms must be sustained to achieve shorter vessel turnaround times, predictable cargo movement and a more competitive trading environment.
Oyetola also highlighted the removal of the United States Coast Guard’s Conditions of Entry on vessels arriving from Nigeria in August 2026.

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He said Nigerian ports had been subject to additional security-related requirements by the United States for 12 years before the restrictions were removed following improvements in compliance with the International Ship and Port Facility Security Code, access controls and other security measures.

He said the development would strengthen confidence in Nigeria’s port-security arrangements and remove additional procedures affecting vessels travelling from Nigerian ports to the United States.
On expansion of port capacity, Oyetola said the ministry was working with state governments and private-sector investors to advance deep seaport developments in Akwa Ibom, Bayelsa, Cross River, Ogun, Ondo and Rivers states.
He said the projects would create additional maritime and logistics corridors, reduce pressure on existing gateways and bring economic activities closer to different parts of the coastline.

The minister stressed the importance of collaboration among the Federal Government, state governments and private investors in delivering the projects.

He also identified regulatory reform as a critical component of an efficient logistics system, saying infrastructure alone would not deliver its full economic value without predictable regulation.
Oyetola said the enactment of the Nigeria Ports Economic Regulatory Agency Act 2026 was an important reform, adding that NPERA would provide a permanent institutional framework for regulating tariffs and charges, service standards, competition and protection of port users.

“If Nigeria is to reduce the cost of moving goods, we must improve infrastructure. If we are to improve infrastructure, we must also improve regulation, security, technology and coordination across the transport system,” he said.

He added that the government would continue to support greater use of inland waterways, improved maritime infrastructure and stronger coordination with agencies responsible for roads, rail and other modes of transportation.

Oyetola said digitalisation would remain central to the government’s logistics reform agenda, with emphasis on electronic documentation, cargo visibility, accurate information and data-sharing among supply-chain operators.
He urged private-sector players to participate actively in financing infrastructure, operating terminals, deploying technology and developing logistics services.

The minister also charged transport journalists to continue providing informed reporting and constructive scrutiny of policies and projects in the sector.

“Transport journalism is particularly important because the sector is technical, capital-intensive and directly connected to the cost of doing business,” he said.

He said the ministry’s immediate priority was to ensure that ongoing investments and institutional reforms translated into practical improvements, including faster cargo movement, improved vessel turnaround, greater capacity, stronger security, transparent regulation and lower logistics costs.

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