.Ban on STS operations pushes vessel traffic to Lome
The Nigerian Ports Authority (NPA) has disclosed that developing deep seaports across the country may not materialise due to the capital-intensive nature of such, which costs not less than $2 billion in investment and the lack of investors.
The Managing Director, NPA, Dr Abubakar Dantsoho, said no investor is attracted to investing in the nation’s deep seaport development, especially when there are no returns on investment following the diversion of cargoes to other countries.
He stated this yesterday during a Breakfast Meeting with the Minister, Federal Ministry of Marine and Blue Economy, organised by the Nigerian Chamber of Shipping (NCS) and Lekki Port, with the theme: ‘Unlocking Opportunities – The Lekki Deep Seaport Playbook for Transforming Trade and Shipping in Nigeria’.
Dantsoho highlighted the sector’s dependence on long-term capital and its vulnerability to global investment trends, noting that the country has “approved concepts” for Badagry, Olokola, Oron, Bakassi, Ibom, Agge, and Bonny deep ports, but cautioned that none can be developed for less than $2 billion, a scale beyond the reach of local banks and government financing.
He noted that it took 14 years and $1.3 billion in Chinese funding to deliver the Lekki Deep Seaport, while the Badagry Deep Seaport remains stalled after nearly 60 years of planning, with funding needs standing at $3.7 billion.
“No group of people in Nigeria can sit and give you $3.7 billion. It has to come from international partnerships and private sector investors,” Dantsoho said.
On regional competition, he admitted Nigeria lost its comparative advantage, saying: “If Badagry port had been built 16 years ago, Nigeria would have outpaced Tema and Cotonou,” adding that investment delays allowed competitors to dominate trade routes.
The NPA boss also pointed to prohibitive costs in port equipment, noting that developing “a modern dock” as a private sector operator could cost at least $10 billion.
Dantsoho also underscored the shift in global shipping strategy, noting that major carriers, including MSC and APM Terminals, are pivoting to medium-sized ships able to serve emerging markets directly, warning that this trend raises questions about the relevance of building new deep-sea ports solely to attract mega-vessels.
Dantsoho urged policymakers and investors to move with global trends, saying, “Naturally, Nigeria should be number one. But without timely investment, we risk falling further behind.”
The former Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Temisan Omatseye, expressed concern over the steady diversion of vessel traffic from Nigerian ports to Lome, Togo, warning that urgent steps must be taken to restore offshore operations and reposition the country as West Africa’s maritime hub.
Omatseye lamented that despite Nigeria’s large market of over 200 million people, the country is losing maritime business to smaller West African neighbours due to policy decisions that discouraged ship-to-ship (STS) operations offshore Lagos.
He traced the shift to a directive issued years ago by a former Central Bank official, which barred STS operations, forcing shipping lines to move to Lome.
Omatseye stressed that the Lekki Deep Seaport should not be seen as a competitor to existing Nigerian ports but rather as a transit and growth driver that can feed smaller ports across the country.
He called on the NPA to take decisive action in leveraging the Lekki Port as a hub to decongest Apapa and Tin Can ports, while also stimulating activity in underutilised regional ports. He emphasised that Nigeria must urgently reclaim its position as the “destination” for shipping in West and Central Africa.
The President, Association of Nigeria Licensed Customs Agents (ANLCA), Emeka Nwokeoji, lamented that while the security system in Nigeria’s waterways has improved, shippers are still paying war risk insurance premiums, making freight to Nigeria higher than in other African countries, adding to the financial burden.
He also questioned the revenue accumulated from the seven per cent surcharge on imports for port development over the past 25 years, with the infrastructure at the port in a poor state.
“Where is that money going to? How come the government will just pocket this seven per cent port development fee and they will share it out there? If they had been taking it one port at a time to fix the infrastructure, we wouldn’t be where we are today,” he stated.
The President and Chairman of Council, Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, represented by the Vice President, Akinbo Akin-Olugbade, cautioned that the full promise of the Lekki port would only be realised if critical challenges such as infrastructure connectivity, policy consistency, trade facilitation, maritime security and human capital development were addressed.
He explained that the playbook for the port’s success must rest on stronger public-private partnerships, benchmarking port operations against global leaders such as Singapore, Rotterdam, and Dubai, and ensuring seamless integration of road, rail, air, and inland waterways.
The General Secretary of the International Chambers of Shipping (ICS), Thomas Kazakos, said globally, modern deep sea ports have been powerful drivers of economic growth, through unlocking trade, boosting competitiveness, and creating opportunities.
In his welcome address, the President of NCS, Mr. Aminu Umar, said for a maritime nation like Nigeria, shipping and maritime logistics are not just enablers of commerce but are central to national prosperity.
He said the Lekki deep seaport, a landmark infrastructure in the Lagos Free Zone, has already demonstrated its potential as a regional hub, supporting international trade volumes and contributing to economic growth.
Managing Director/Chief Executive Officer, Lekki Port LFTZ Enterprise Limited, Mr. Wang Qiang, described Lekki Deep Seaport model as a successful example of Public-Private Partnerships (PPP) showcasing the critical ingredients such as; bankable structure, predictable regulation, performance contracts, local content and skills.
“The Lekki Port Playbook aligns with the National Policy for Marine and Blue Economy. Adoption of the playbook can further optimise Nigeria’s potential for maritime infrastructure and technology development; significant revenue generation; job creation and strategic economic diversification.
“When Lekki Port commenced transshipment operations in 2023, it positioned the country as a transshipment hub under the African Continental Free Trade Agreement (AfCFTA). This has helped regain the maritime businesses formerly lost to other West African countries,” he said.
