Nigeria spends $9 billion yearly on foreign vessels, experts lament

Maritime experts have said that Nigeria spends between $7 to $9 billion yearly to foreign ship owners, saying the country could achieve up to 1,000 per cent improvement in port logistics efficiency if the single-window system is fully implemented.

The single-window system, they say, will remove the human interface in import and export processes, and potentially activate investments and increase the utilisation of Nigeria’s hub for transit, transshipment, repairs, and related activities.

‎Speaking at the seventh African Centre for Supply Chain (ACSC) yearly Awards and Dinner, Maritime lawyer, Dr Emeka Akabogu noted that despite Nigeria’s strategic location at the heart of the Gulf of Guinea and its status as a natural hub for regional and continental trade, the country continues to miss out on these advantages due to weak enforcement of port regulations and widespread under-declaration of cargo.

He also lamented that with up to 60 per cent of importers failing to make honest declarations—a lapse he said fuels corruption, slows clearance, and undermines the efficiency gains targeted by the single-window system.

He pointed out that Nigeria is experiencing a significant deficit in regional cargo traffic, with a growing share of its import–export interface handled by more efficient neighbouring ports such as Lomé.

‎”It also represents to an extent, a deficit in Nigeria’s own port infrastructure, port operations and efficiency. It opens up for us the importance of creating increased efficiency within our logistics systems because these significant numbers attributed to Togo are issues that are undergirded in logistics,” he said.
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Akabogu explained that many Nigeria-bound cargo movements are now routed through Togo for handling and transshipment, a development he said reflects deficits in Nigeria’s port infrastructure, operations and logistics efficiency.

According to him, Nigeria’s maritime sector remains largely untapped, with studies estimating that the blue economy could unlock up to $44 billion annually if fully optimised.
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He explained that about $10 billion of this potential lies in freight, coastal shipping, vessel movements, inland waterways and export cargo handling, much of which he said is currently not captured domestically due to efficiency gaps in Nigeria’s port and logistics systems.

‎”We have got to create a framework where it is impossible for the importer to under-declare. We have to apply technology to make that possible. ‎Once we’re able to apply technology fully within our supply chain for import and export fully, a single-window reform, to remove the human interface, then you will see a 900 to 1,000 per cent improvement in the efficiency of logistics,” he said.

Director-General of the African Centre for Supply Chain, Dr. Obiora Madu, reinforced the concern in his remarks, noting that the logistics sector has expanded rapidly in recent years, pointing out that about 50 per cent of Nigeria’s logistics companies were established within the last five years.

He explained that while the industry is growing, significant gaps still remain in standards, structure, and public-sector efficiency.
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Madu stressed that without a functional supply chain system, even initiatives like AfCFTA cannot achieve their goals, noting that Nigeria must strengthen its logistics environment and address the institutional and operational gaps holding the sector back.
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Echoing these concerns, industry leaders at the event cautioned that Nigeria’s blue economy goals could not be achieved without deliberately strengthening the country’s human capital.

They noted that many workers, from coastal communities to logistics operators, remain outside formal training structures, and emphasised the need for skills development, vocational pathways and community-level capacity building to support modern maritime operations.
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They noted that many programmes have not moved forward because of protocol, bureaucracy and poor coordination across agencies, adding that unresolved issues such as dredging of channels and the inactivity of several river ports continue to hinder operations.
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Reviewing the 2024 Logistics and Supply Chain Industry Report, former Dean, School of Transport and Logistics, Lagos State University, Prof. Samuel Odewumi commended the ACSC for producing a multidisciplinary, evidence-based document that captures the realities of the sector, making it a crucial relevance for future policy development.
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He said the report highlights gaps in regulation, infrastructure, technology, manpower and governance, offering clear recommendations that policymakers must urgently adopt.

‎“This report is rigorous and multidimensional,” he said, urging government agencies to treat the findings as actionable material rather than an academic exercise.

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