Maritime
Ports Dev And Policy Implications
There is a popular saying that “when two elephants fight, the grass suffers” this scenario could better explain what has come to be of the Nigerian Port Authority (NPA) with the policy of ports concession introduced a few years back after a very serious clash of interest between the government and the Maritime workers Union of Nigeria (MWUN), over the policy.
The federal government embarked on privatisation and commercialisation of Nigerian ports, policy in 1991 which eventually disengaged over 8,000 officers and staff of the authority.
Out of this number terminated that year, about half were professionals, trained by the authority in various universities abroad and two-thirds of the remaining number were people who understudied the Hamburg Port Consultant (HPC), according to records.
Port experts from Germany had operated the Nigerian ports effectively, before some greedy Nigerians who envied their position maneuvered to chase them out of operations and quickly occupied their quarters which were given to them for their services as consultants.
When these foreigners were in service as expatriates, both revenue and operations were not disrupted, as operating cost and wastage in term of fraud was almost absent.
From records, operations of the NPA began to dwindle when Nigerians who understudied the expatriates with the view of taking over from them, as well as the majority of the middle-level manpower who were trained in various universities and ports all over the world were disengaged, leaving about one third of the workforce.
As a result of this, much pressure mounted on the remaining workers, and there was serious cargo and ship congestion to the extent that office staff, including typist were deployed to the traffic department, on board ships, at shore quay apron and staking areas of operations.
As unskilled labour then, a lot of things took place among shipping companies, freight forwards and stevedoring companies. A lot of losses were recorded by the NPA, forcing the authority to go into mass employment of graduates, secretaries and other required officers, who were used to fill the gap so created by the rationalising policy.
That apart, today, another policy popularly known as port concessioning has been introduced, without minding the consequences, not only to the maritime sector, but to the economy also. Developed economies that opted for concessioning did put their economic indices intact, but our economy is so loose and almost unregulated.
The Structural Adjustment Programme (SAP) we thought would improve our economy just led to more debt and borrowing, whereas in other developing economies, the policy improved their economy, and we are living testimonies that the negative effect of SAP is still telling on the Nigerian economy.
Then military head of state made a significant statement that “Nigeria’s problems have defied all economic principles, and are we sure the leakages that pushed SAP to our optimal financial mess will not repeat itself?
Port concessioning chronicled from port privatisation, which means that most of the area of services in the port will be privately operated under a lease agreement.
The term concessioning agreement means that NPA is restricted to being a regulatory body of the port (landlord) and will no longer offer services, as the role of NPA on the new arrangement could be said to be mere fanciful.
The NPA lack the political will and could not check the concessionaire firms, even the charges they impose on importers for one service or the order. Importers who may be compelled to use the services of these private firms cry over high charges, as the NPA can not dictate how much charges the firms should impose on their client.
Such scenario will also lure the multinational shipping companies to introduce multiple charges on Nigerian importers and the effect will be transferred to the Nigerian consumers.
Talking about duplicated charges by shipping operators, it was sometime reported that the Nigerian Shippers Council (NSC) detected about eleven charges imposed by the multinational shipping firm, some of which are not applicable in Nigerian ports.
Such charges include: Shipping companies terminal charges, terminal handling charge; transfer charge; port operations surcharge, commission on turn-over charge, documentation and administrative charge, manifest amendment charge, container deposit, container demurrage and rent/equipment charge. Apart from the above charges, NPA still collect some of their charges from importers.
In the Rivers Ports, especially the Port Harcourt port complex, the activities of some concessionaires create room for one to question the viability of the policy in terms of accelerated development and employment generation.
The Bua ports and Terminal Limited, one of the concessionaires in Port Harcourt wharf had apart from reducing the workforce it inherited which are mostly dock labour workers, it has also up till now failed to rebuild the collapsed quay apron (Berth) in its area of operation.
One could begin to wonder if the terms of concessioning agreement did not cover the aspect of port development and other areas like development of the host communities within which the concessionaires operate.
Rather than pursue programmes that will upgrade the general port condition to make it better than how they met it, some of these concessionaires had remained adamant to issues of port development and employment generation, and this simply suggest that their focus is only on how they will maximise profit, and whatever the effect, implication with respect to their activities on the environment is not much of concern to them.
On the part of the NPA that has lost substantial number of their professional manpower to the concessioning policy, it has now known that most of those staff lost through retrenchment in concessioning are still needed to run the organisation, particularly for those vital technical and specilalised areas that could not be easily be replaced.
In that regard, the NPA had turn-around to re-engage some of these old staff so as to enable it cope with the work load and dire demand for adequate manpower to accomplish stated goals.
From all indications. The new regime of port concessioning has not yeilded the desired objective so envisaged. In the past six years of its implementation. Rather than create employment, it has reduced the workforce, and on the other side, the development of both the port environment and the host communities have not been properly attended to.
The fact that the NPA is still in need of some of the staff it lost to the concessioning policy, for which it engaged some of them on contract, and the fact that port development so envisaged as well as in employment which had not changed suggest that the concessioning policy though might be good, but the timing and implementation leaves much to be desired.
It is ideal that policy makers take their time to look at the various aspect of the implication, irrespective of the perceived profits.
Corlins Walter
The former President of the Nigeria Association of Government Approved Freight Forwarders (NAGAFF), Dr. Eugene Nweke, has said that only a political will would make the 24-hour port operations achievable.
Nweke made the disclosure during the Fifth Town Hall meeting organised by JournalNG held in Lagos on Thursday.
“24 hour port operations is achievable if government would give a clear order to the effect.
“Government should get a regulatory agency to supervise port operations accurately for monitoring and evaluation.
“Once everyone knows what to do, operators will be guided. It will not be a situation where government issues port order without monitoring and no enforcement.
“So, we need a political will to drive our ports for 24-hour port operations in Nigeria”, Nweke said.
He said government agencies should see the transformation as a necessity, same as port stakeholders.
Nweke continued that collaboration and partnership among stakeholders would enable both government and port users achieve 24-hour port operations.
He said any identified bottlenecks delaying the achievement of 24 hours ports operations should be removed and sanctioned accordingly.
He noted that port communities are meant for commercial activities, adding that necessary infrastructure should be considered in the ports to avoid unnecessary human element.
Nweke urged government to improve on infrastructure to make the ports more attractive and friendly for customers.
Also in his presentation, the Chairman, Nigeria Ports Consultative Council (NPCC), Mr. Bolaji Sunmola, said quest to actualise 24-hour port operations in Nigerian seaports was no longer aspirational but necessary.
He said with a carefully sequenced strategy anchored on technology, sustainability, and stakeholder alignment, Nigerian ports could be positioned as efficient, secure, and economically transformative assets.
As Chairman of NPCC, he reaffirmed commitment to this vision by inviting all stakeholders-MDAS, port terminal operators, energy providers, transport unions, and investors to join in executing this transformation.
The Assistant Comptroller, Nigeria Customs Service (NSC), Abass Oladepo, said Customs had been operating 24 hours port operations.
He said at Ports and Terminal Multi Services Ltd. (PTML) command the Customs had commenced 2-hour cargo clearance, adding that averagely in one-year the Command had achieved less than 6-hour ports clearance.
The town hall meeting was to sensitise stakeholders on Customs transformation known as B’Odogwu and urge importers to engage in honest declaration to enable them achieve few minutes cargo clearance.
In his contribution, the Managing Director, ENL Consortium, one of the terminal operators, Mr. Mark Walsh, urged Nigeria banks attached to ports cargo clearance operations to improve their operation to avoid delays in payments.
He commended the Federal Government and the Nigerian Ports Authority for modernising the ports, adding that there was need for 24-hour lighting at the ports, to stop them from running generators 24/7.
He noted that ports operation needs more lighting, especially for security during the night operations.
The General Manager, Trade Modernisation Project (TMP), Mr. Ahmed Ogunsola, urged stakeholders to collaborate and point out challenges hampering 24 hour port operations to provide solutions.
Ogunsola said TMP worked with the NCS to enhance cargo clearance by providing technology backbone, building capacity and to enhance sustainability.
He said 24 hour port operations was achievable with the collaboration of port users.
“The TMP had agreement with the Federal Government to provide 67 scanners and presently we have successfully brought five scanners into the country to modernise Nigeria Customs Service and facilitate trade”, Ogunsola said.
In his opening remarks, the Publisher, JournalNG magazine, Mr. Ismail Aniemu, said the forum gave the stakeholders opportunity to interact and come with recommendations to guide government in policy making.
Aniemu said many ports in Nigeria need to turn to smart ports, adding that Nigeria had competent expertise that would assist government to actualise the dream.
He said some of the port users were operating 24 hours and there was need fornit to be sustained collectively.
Local rice merchants, under the aegis of Rice Millers, Importers and Distributors of Nigeria (RMIDN) have expressed displeasure over the upsurge in the smuggling of rice into the country through neighbouring Cotonou, Benin Republic.
According to RMIDN, Nigeria has lost an estimated N60 billion as a result of rice smuggling.
“Mostly Indian and Thailand rice that are imported into Cotonou find their way into Nigeria illegally with Western Creeks serving as gateway to the highest degree of these illicit imports”, RMIDN said.
Speaking exclusively with The Tide in Lagos, the Chief Executive Officer, Bayuf Farm limited, Chief Kabiru Idowu, noted the large scale concealment in trucks purportedly laden with dutiable goods to the fleet of vehicles under the cover of darkness, saying “Western Marine Creeks, is indeed a place to watch, if the economy of the nation must be protected”.
According to him, “the volume of imports for which revenue is lost on the part of the government may far outweigh the generated revenue and create an adverse affect on government policy to encourage local production of some products.
“It would also be recalled that in December, 2024, the Customs Area Controller, Federal Operations Unit, Compt. Kola Oladeji, disclosed to journalists at a briefing in the Command that smuggling of rice through the Western Creeks is on the increase, thereby placing a question mark on the proficiency of the Marine Command of the Customs.
According to him, the areas of water which flows into the land accounts for a higher degree of rice smuggling, adding that there is inlet through water behind Alaba market where smugglers are coming, with various items but with rice topping the lists.
Also, Mr. Tapenu Michael noted that importers of Nigeria bound goods through the Cotonou Port see the western waterways as most viable entry point either for evasion or concealment of prohibited items.
He emphasized that most items that fall under Federal Government import prohibition list or statutory barred from entering the country through land borders find their ways through the creeks.
The Nigerian Association of Road Transport Owners (NARTO) has issued an urgent call to the Nigerian Ports Authority (NPA) management and handlers of the eto electronic call-up system, urging immediate action to address what they describe as unfriendly policies hampering the direct delivery of cargo from the Lagos Port.
According to the Chairman of NARTO Metropolitan Unit, Abdullahi Moh’d Inuwa, the new policies under the eto call-up system have led to significant delays in truck approvals and discouraged truck operators from servicing the port.
“Direct delivery of cargo requires between 48 to 54 trucks daily per vessel, and with multiple vessels, at least 120 to 150 trucks are needed.
“However, the current approval process is slow, and many truckers now prefer loading outside the port due to the multiple levies and restrictions imposed”, Inuwa stated.
He warned that these developments threaten the business interests of consignees and importers, with many considering diverting cargo to other ports.
“Trucks are being forced to offload inside sheds, incurring extra charges and demurrage, which are eventually passed on to end users. Despite government efforts to reduce duties on agricultural products, the call-up process remains a major bottleneck”, he added.
The trucker said prompt intervention is crucial to restore confidence and ensure the smooth evacuation of cargo, which is vital for Nigeria’s import-dependent economy.
Truckers and port users have repeatedly complained about extortion by security agencies, racketeering in the call-up system, and policy inconsistencies that have resulted in gridlock, delays, and financial losses.
Industry sources confirm that the current system often favors certain operators, leaving others stranded and forcing importers to pay exorbitant fees to favours revalidate delivery orders.
NARTO is calling for a review of the eto call-up system to ensure fairness and efficiency, warning that continued inefficiencies could lead to further congestion, trade disruptions, and a shift of cargo traffic away from Apapa Port.
The association also appealed to security agencies to stop the harassment and extortion of truck drivers, and urged the NPA to harmonize safety requirements to avoid multiple taxation.
By: Stories by Nkpemenyie Mcdominic, Lagos
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