Business and Economy
Dantsoho: Efficient Ports Key to Nigeria’s Success in African Continental Trade Race
Nigeria’s renewed drive to unlock the vast potential of its marine and blue economy is gaining traction, propelled by a combination of policy reforms, infrastructure development, and institutional restructuring under the administration of Bola Ahmed Tinubu.
Across various fronts—ranging from legislation and financing to regulatory adjustments and digital transformation—the Federal Government is implementing what industry experts describe as a long-overdue reset of Nigeria’s maritime framework. The objective is to leverage the opportunities presented by the African Continental Free Trade Area and establish Nigeria at the core of intra-African trade.
For decades, Nigeria’s ports have served as the primary gateway for international commerce, handling over 90 percent of cargo by volume. However, persistent inefficiencies, congestion, inadequate infrastructure, and fragmented processes have hindered their competitiveness, allowing smaller regional economies to capture a larger share of maritime traffic. The government is now taking decisive steps to address these challenges.
Managing Director of the Nigerian Ports Authority, Dr. Abubakar Dantsoho, made this known while speaking to industry stakeholders at a forum in Lagos. He emphasised the need for Nigeria’s ports to evolve beyond traditional limitations in order to compete effectively in an increasingly integrated African market.
“The time has come for a paradigm shift in the structure of Nigeria’s economy towards the full utilisation of our marine resources. Our port system, if properly harnessed, can serve as a major driver of economic growth,” he stated.
Under AfCFTA, where trade barriers are gradually being reduced, Dantsoho stressed that efficiency—not geography—will determine which countries dominate cargo flows.
“Nigeria’s geographical advantage alone is no longer sufficient. Efficiency, speed, innovation and reliability will define leadership in this new era,” he added.
The foundation for this transformation was laid early in the Tinubu administration with the establishment of the Federal Ministry of Marine and Blue Economy, a move that signalled a strategic shift in Nigeria’s economic priorities.
The ministry, led by Adegboyega Oyetola, was created to harmonise previously fragmented maritime functions and unlock an estimated $3 trillion blue economy potential.
Since its creation, the government has pursued a multi-layered reform agenda that combines infrastructure investment with policy innovation. A key component is the port modernisation programme, which has received both executive and legislative backing.
In a significant development, the House of Representatives approved a $1 billion loan request by President Tinubu for the rehabilitation of the Lagos Port Complex and Tin Can Island Port—two of Nigeria’s most critical maritime assets.
According to the President, the project is designed to address long-standing infrastructure deficiencies while improving efficiency, safety, and global competitiveness. It also aligns with the National Integrated Infrastructure Master Plan and supports non-oil exports and economic diversification.
At the operational level, the Nigerian Ports Authority has begun targeted upgrades at Apapa and Tin Can Island ports, focusing on berth expansion, improved cargo handling, and reduced vessel turnaround time.
The modernisation effort is also being extended nationwide. Procurement processes are underway for upgrades in Warri, Port Harcourt, Onne, and Calabar ports, reflecting the government’s commitment to inclusive development.
Oyetola reiterated that the reform agenda is not limited to Lagos, noting that nationwide upgrades will enhance connectivity and stimulate regional economic growth.
In parallel, new deep seaports are being developed in Bayelsa, Cross River, Akwa Ibom, and Ondo states to expand capacity and reduce congestion at existing facilities. The emergence of deep seaports such as Lekki Port is already transforming Nigeria’s maritime landscape by enabling larger vessels and increasing cargo throughput.
Beyond infrastructure, the government is prioritising digitalisation to eliminate inefficiencies associated with manual processes. Key initiatives include the Port Community System (PCS) and the National Single Window platform, both aimed at integrating stakeholders, streamlining documentation, and improving transparency.
Experts believe these systems will significantly reduce cargo clearance times and lower the cost of doing business, addressing long-standing concerns among importers and exporters. The shift toward a paperless, technology-driven port system is also expected to curb corruption and enhance operational efficiency.
Operational reforms are targeting reduced cargo dwell time, faster clearance processes, and improved service delivery across terminals.
Recognising that port efficiency extends beyond the ports themselves, the government is investing in multimodal logistics to improve cargo evacuation and inland connectivity. This includes rail integration, inland dry ports, barging operations, and dedicated export corridors.
Dantsoho noted that without efficient hinterland connectivity, improvements at the ports may not be sustainable, highlighting long-standing challenges within Nigeria’s logistics chain.
Maritime security has also improved significantly. Nigeria has recorded over four years without piracy incidents, largely due to the Deep Blue Programme and enhanced surveillance systems. This progress has strengthened investor confidence and created a more stable environment for maritime operations.
The government is also encouraging private sector participation through project financing models to address funding gaps and accelerate development.
According to Dantsoho, this approach is already enhancing efficiency and improving access to funding for critical infrastructure.
Early outcomes of the reforms are evident in rising revenue performance. Oyetola disclosed that agencies under the ministry increased their combined revenue from about N700.79 billion in 2023 to approximately N1.83 trillion in 2025, driven by improved efficiency and transparency.
Beyond revenue gains, the broader economic impact is substantial. Efficient ports are expected to reduce logistics costs, boost export competitiveness, and support industrialisation, particularly in non-oil sectors.
Despite its economic size, Nigeria currently handles only about 25 percent of cargo traffic in West Africa, even though it accounts for over 60 percent of the region’s GDP—a gap Dantsoho described as evidence of underutilised potential.
The AfCFTA presents both an opportunity and a challenge. Countries with efficient, technology-driven ports are likely to dominate trade flows, while those lagging behind risk being sidelined.
Nigeria’s ongoing reforms are therefore aimed not only at catching up but also at taking a leadership position in African trade.
Officials and industry stakeholders remain optimistic that these efforts will reposition Nigeria as a major maritime hub. Oyetola highlighted the country’s strategic advantages, including its extensive coastline, inland waterways, and location along the Gulf of Guinea.
“With over 823 kilometres of coastline and a prime location, Nigeria is uniquely positioned to harness the immense potential of the marine and blue economy,” he said.
Dantsoho expressed confidence that sustained reforms will usher in a new era of maritime competitiveness, stating that Nigeria’s ports are on track to become a leading logistics hub in Africa.
However, challenges persist, including infrastructure gaps, bureaucratic inefficiencies, funding constraints, and the need for consistent policy implementation. There are also concerns about whether improvements at the ports will be matched by progress in inland logistics, power supply, and industrial capacity.
Nonetheless, current policy direction indicates a strong commitment to addressing these issues through coordinated reforms and strategic investments.
As Nigeria continues its push for economic diversification, the blue economy is emerging as a key growth frontier. The combination of policy reforms, infrastructure development, and institutional realignment represents one of the most comprehensive efforts in recent years to transform the maritime sector.
If sustained, these initiatives could redefine Nigeria’s role in African trade, turning its ports into efficient engines of economic growth.
For now, the stakes are clear: in the race to dominate intra-African trade, Nigeria is placing a significant bet on its ports—one that could shape the nation’s economic future for decades.
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