Nigeria’s maritime sector, the gateway through which over 80 per cent of foreign trade flows, is undergoing a sweeping transformation, anchored on port modernisation, digital trade facilitation and institutional reform. The new maritime policy direction may be the springboard for building competitive hubs, ADAKU ONYENUCHEYA reports.

Nigeria’s ports are central to the country’s economic architecture. Yet, for many years, they have been constrained by infrastructural decay, operational inefficiencies, excessive human interface and poor technological support.

Industry estimates suggest that Nigeria loses over N1 trillion yearly to a lack of port automation and modern infrastructure, as congestion, delays and administrative rigidities as well as duplication increase logistics costs for businesses and discourage shipping lines.

In addition to the financial losses, inefficient port operations have continued to undermine the country’s regional competitiveness, with the country lagging behind other neighbouring ports despite accounting for over 60 per cent of the cargo destined for Africa.

West African ports such as Ghana, Togo and the Benin Republic, which are equipped with modern facilities and digital trade systems, continue to capture significant volumes of cargo originally destined for Nigeria, gradually turning it into a transshipment country.

The economy, touted as the most vibrant in Africa with a huge import dependency ratio, operates several ports that have struggled to match the capacity and efficiency of smaller neighbouring economies.

Experts said the lack of digital trade systems and modern facilities to enhance the seamless flow of goods causes delays at the ports, causing importers, exporters, and shippers to pay higher costs for clearing their goods, making Nigeria’s ports one of the most expensive in the world.

President Bola Tinubu has lamented that Nigeria loses an estimated $4 billion yearly due to administrative bottlenecks, delays and corruption at our ports.

To address the situation, the government is prioritising the maritime sector in the reform agenda of its administration.

Resetting sector’s administrative framework
The President established the Ministry of Marine and Blue Economy in 2023 to restructure the maritime sector as a critical driver of national development and enable it to generate an estimated N70 trillion yearly revenue.

Senior Advocate of Nigeria, Dr Olisa Agbakoba, had projected that if ongoing reforms are coherently implemented in the sector, the country can generate such revenue, which was corroborated by the Sea Empowerment and Research Centre (SEREC).

The Marine and blue economy encompasses a wide range of activities, including shipping, fisheries, marine transport, offshore energy and coastal tourism, among others.

For Nigeria, with over 850 kilometres of coastline and vast maritime resources, these subsectors represent enormous untapped economic potential.

The Minister of Marine and Blue Economy, Dr Adegboyega Oyetola’s policy framework focuses on strengthening maritime governance, enhancing regulatory coordination and attracting investment into port infrastructure and maritime services.

By aligning policy reforms with infrastructure upgrades and digital transformation, the ministry aims to build a maritime ecosystem capable of supporting Nigeria’s long-term economic diversification.

Port construction and modernisation
A cornerstone of the reform programme is the large-scale reconstruction and modernisation of Nigeria’s major seaports.
The Federal Government initiated an ambitious infrastructure renewal plan targeting key facilities including Apapa, Tin Can Island, Port Harcourt, Warri and Calabar ports.

The objective is to upgrade quay walls, deepen channels, modernise cargo-handling equipment and expand terminal capacity to accommodate larger vessels and increased trade volumes.

The strategy reflects a recognition that efficient ports are indispensable to economic growth. Modern ports reduce vessel turnaround time, lower freight costs, and enhance supply chain efficiency, factors that directly influence a country’s competitiveness in international trade.

Early indicators suggest that these reforms are already beginning to produce measurable results. Nigeria’s cargo throughput recorded a significant surge in recent years, rising by 45.1 per cent to 103.3 million tonnes, while ship calls increased to more than 4,000 vessels across Nigerian ports.

Container traffic also climbed to 1.74 million TEUs, reflecting growing trade activity and increased export shipments.

These improvements highlight the economic potential that could be unlocked when infrastructure upgrades are combined with operational reforms.

One of the most immediate advantages of port modernisation is the improvement in operational efficiency.

Many of Nigeria’s major ports were constructed several decades ago and have struggled to cope with the demands of modern shipping and cargo handling. Ageing quay walls, shallow drafts, obsolete equipment and limited cargo-handling capacity have often resulted in congestion and long vessel waiting times.

Modernisation programmes that involve infrastructure upgrades, channel deepening and the deployment of modern cargo-handling equipment will significantly reduce vessel turnaround time and cargo dwell time.

Faster port operations mean ships spend less time waiting to berth, while cargo is cleared more quickly, improving the overall efficiency of the logistics chain.

Inefficient ports often translate to higher logistics costs for importers, exporters and shipping companies.

Delays in cargo clearance lead to additional charges such as demurrage, storage and handling fees, which are ultimately passed on to consumers in the form of higher prices.

By improving infrastructure and operational processes, port modernisation will lower these costs and make Nigerian ports more attractive to shipping lines and international investors.

This could also reverse the long-standing trend of Nigerian cargo being diverted to neighbouring ports in countries such as the Benin Republic, Togo and Ghana.

Expanding maritime trade
Another key objective of the reform programme is to position Nigeria as a major maritime logistics hub in West and Central Africa.

Nigeria’s geographic location already places it along some of the busiest shipping routes connecting Europe, Asia and the Americas with Africa. However, inefficiencies in port operations historically prevented the country from fully capitalising on this advantage.

With modern infrastructure, improved digital systems and streamlined regulatory processes, Nigeria’s ports could become the preferred destination for cargo serving the West African sub-region.

Evidence of this emerging potential can already be seen in the growing role of ports such as Lekki Deep Sea Port, which has significantly increased container traffic and trans-shipment volumes.

The development of modern ports alongside improved inland logistics networks could transform Nigeria into a regional redistribution centre for maritime trade.

Last week, the Nigerian Ports Authority (NPA) released its 2025 report showing that the nation’s maritime sector recorded a historic surge in activity, driven by increased cargo throughput, rising container traffic, and a growing export footprint — a development that underscores the federal government’s commitment to economic diversification.

The 2025 Operational Performance Report released by the NPA revealed that total cargo throughput surged by 24.8 per cent, rising from approximately 103.6 million metric tonnes in 2024 to over 129.3 million metric tons in 2025.

The report identified Lekki Port as the leading port in Nigeria, handling 40.6 per cent of the country’s total cargo throughput.

The Managing Director of the Nigerian Ports Authority (NPA), Dr Abubakar Dantsoho, described the growth as one of the most significant yearly increases in Nigeria’s maritime history.

He noted that the milestone strengthens the country’s position as a more competitive and strategic player in regional and global trade.

According to him, the outstanding performance did not just happen overnight; it is a result of the transformative reforms of the federal government, as the nation’s ports struggled with a lot of constraints for decades.

The coming of the National Single Window
Infrastructure alone, however, cannot deliver a competitive port system without complementary digital reforms. This is where the National Single Window (NSW) initiative becomes critical.

Tinubu said implementing the NSW will enable Nigeria to benefit from the $2.7 billion yearly economic gain from paperless trade, like other countries such as Singapore, South Korea, Kenya and Saudi Arabia, which have already seen significant improvements in trade efficiency after implementing digital systems at their ports.

Analysts project that a fully operational National Single Window could boost customs revenue by 10 to 20 per cent yearly, translating into an additional N600 billion to N1.2 trillion in government earnings.

Beyond revenue generation, the system could reduce cargo dwell time by 35 to 45 per cent and cut overall trade transaction costs by up to 25 per cent.

Analysts estimate that a fully operational digital maritime ecosystem could generate over 100,000 direct and indirect jobs across the logistics and ICT sectors. Such economic multipliers highlight why the maritime sector is increasingly viewed as a strategic pillar of Nigeria’s economic diversification strategy.

Such improvements would significantly enhance Nigeria’s logistics performance and ease of doing business.

The Chief of Staff to the President, Femi Gbajabiamila, recently announced that Nigeria will launch the National Single Trade Window platform on March 27.

He described the initiative as a monumental reform aimed at transforming the country’s trade ecosystem by simplifying procedures, improving efficiency and enhancing Nigeria’s competitiveness in global trade.

The NSW is designed as an integrated digital platform that enables traders to submit all import, export and transit documentation through a single electronic interface rather than interacting with multiple government agencies.

The NSW seeks to eliminate these inefficiencies by creating a unified digital ecosystem that integrates all trade-related processes.

The NPA, being a critical stakeholder in the NSW initiative, has fully aligned its operational processes with the NSW platform. In furtherance of this, NPA has been part of the NSW Committee, which has been working with the NSW Project Team, KPMG, and Crimson-Logic.

These engagements have focused on ensuring seamless integration of the Authority’s Revenue Invoice Management System (RIMS 2.0) with the NSW architecture.

Several strategic, operational and technical decisions have been taken to align current processes with the national framework.

In line with Phase One of the National Single Window (NSW) go-live, the Nigerian Ports Authority (NPA) has participated in a series of technical and strategic engagements with the NSW project team and its implementation partners.

The authority has also completed the initial User Acceptance Testing (UAT), supported the inauguration of the NSW Transition Committee, and developed and delivered all requested system endpoints (integration codes) to enable process alignment between the NPA and NSW platforms.

Together, these initiatives represent one of the most far-reaching attempts to unlock the economic potential of Nigeria’s maritime sector and position it as a critical engine of national growth.

Digital platforms reduce human intervention in administrative processes, thereby minimising opportunities for corruption and revenue leakages.

In addition, real-time information sharing among stakeholders enhances coordination and improves decision-making across the maritime value chain.

From a macroeconomic perspective, these reforms have the potential to significantly boost government revenue and stimulate economic growth.

Efficient ports facilitate increased trade volumes, which in turn lead to higher customs duties, port charges and related maritime revenues, while improved logistics infrastructure also supports export-oriented industries by ensuring that Nigerian products can reach international markets more efficiently.

Furthermore, modern ports and digital trade systems can attract foreign direct investment into sectors such as shipping, logistics, manufacturing and maritime services.

Investors are typically drawn to economies with reliable infrastructure and efficient trade systems, and the ongoing reforms are expected to strengthen Nigeria’s competitiveness in the global trading environment.

Ultimately, the combined impact of port modernisation and the National Single Window will extend beyond the maritime sector.

By improving trade facilitation, lowering logistics costs and enhancing revenue generation, these reforms will contribute to broader economic diversification and position Nigeria as a leading maritime hub in West and Central Africa.

The successful implementation of these reforms depends heavily on the institutional leadership of the NPA.

The NPA has intensified efforts to modernise infrastructure, strengthen digital systems and improve operational efficiency across the nation’s port network.

The authority’s reform agenda includes the deployment of advanced automation tools such as the Port Community System, the Vessel Traffic Management System and digital cargo tracking platforms.

These initiatives are designed to enhance real-time coordination among port stakeholders and create the technological backbone required for the National Single Window to function effectively. The impact of these reforms is also reflected in the financial performance of the NPA.

The authority generated N894.86 billion in revenue in 2024 and is projecting N1.28 trillion in revenue for 2025, driven largely by increased cargo traffic, digital automation and infrastructure upgrades.

Additionally, the NPA remitted a record N400.8 billion to the Consolidated Revenue Fund (CRF) in 2024, nearly double the amount remitted the previous year.

These figures underscore the growing economic significance of Nigeria’s maritime sector when supported by effective institutional leadership.