AfCFTA: Nigeria Revamps Ports to Capture Regional Cargo Flows — Dantsoho

Juliet Akoje In Abuja

Nigeria has intensified efforts to reposition its maritime sector as a key driver of economic growth, with sweeping reforms aimed at upgrading port infrastructure, improving efficiency and capturing a larger share of regional cargo traffic under the African Continental Free Trade Area (AfCFTA).

The renewed push, under the administration of President Bola Ahmed Tinubu, combines policy reforms, institutional restructuring and infrastructure development to unlock the vast potential of the country’s marine and blue economy.

At the heart of the initiative is a comprehensive overhaul of Nigeria’s port system to expand capacity and establish the country as a dominant trade hub in West Africa.

Industry stakeholders say the multi-pronged approach covering legislative backing, financing, regulatory reforms and digital transformation marks a long-overdue reset of the nation’s maritime architecture.

Nigeria’s ports currently handle over 90 per cent of the country’s cargo by volume, but persistent inefficiencies, congestion, poor infrastructure and fragmented processes have undermined their competitiveness, allowing smaller economies in the region to attract a significant share of maritime traffic.

Speaking at a stakeholders’ forum in Lagos, Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, said the country must move beyond its traditional reliance on geographical advantage.

“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 said.

Dantsoho warned that under AfCFTA, where trade barriers are being reduced, efficiency, speed, innovation and reliability not geography will determine leadership in cargo flows.

The foundation for the ongoing reforms was laid with the creation of the Federal Ministry of Marine and Blue Economy, an institutional move designed to coordinate maritime activities and unlock an estimated $3 trillion potential in the sector.

Minister of Marine and Blue Economy, Adegboyega Oyetola, said the ministry is driving a coordinated reform agenda that integrates infrastructure investment with policy innovation.

As part of the effort, the House of Representatives recently approved a $1 billion loan request by President Tinubu for the rehabilitation of the Lagos Port Complex and Tin Can Island Port.

According to the President, the project is intended to address long-standing infrastructure deficiencies, improve operational efficiency and enhance global competitiveness, in line with the National Integrated Infrastructure Master Plan.

At the operational level, the NPA has commenced targeted upgrades at Apapa and Tin Can Island ports, focusing on berth expansion, improved cargo handling and reduced vessel turnaround time.

The modernisation programme is also being extended beyond Lagos, with procurement processes underway for upgrades in Warri, Port Harcourt, Onne and Calabar ports.

Oyetola emphasised that the reforms are not limited to Lagos, noting that nationwide port development will boost connectivity and stimulate regional economic growth.

In addition, new deep seaports are being developed in coastal states including Bayelsa, Cross River, Akwa Ibom and Ondo to increase capacity and decongest existing facilities.

The emergence of deep seaports such as Lekki Port is already enhancing Nigeria’s ability to handle larger vessels and increase cargo throughput, key to competing in global shipping networks.

Alongside infrastructure upgrades, the Federal Government is implementing an aggressive digitalisation strategy to eliminate inefficiencies linked to manual processes.

This includes the deployment of a Port Community System and a National Single Window platform to integrate stakeholders, streamline documentation and improve transparency.

Experts said these initiatives could significantly reduce cargo clearance times and lower the cost of doing business.

The move towards a paperless port system is also expected to curb corruption and improve Nigeria’s attractiveness as a logistics hub.

Operational reforms are targeting shorter cargo dwell times, faster clearance procedures and improved service delivery across port terminals.

To complement these efforts, the government is investing in multimodal transport systems, including rail integration, inland dry ports, barging operations and dedicated export corridors, to ease congestion and enhance inland connectivity.

Dantsoho noted that without efficient hinterland logistics, gains made at the ports would be difficult to sustain.

On maritime security, Nigeria has recorded over four years without piracy incidents, a development attributed to the Deep Blue Programme and improved surveillance systems.

The improved security environment has boosted investor confidence and created a more stable climate for maritime operations.

The NPA is also encouraging private sector participation through project financing models aimed at bridging funding gaps and accelerating infrastructure development.

According to Oyetola, agencies under the ministry increased their combined revenue from about N700.79 billion in 2023 to approximately N1.83 trillion in 2025.

Analysts say improved port efficiency could reduce logistics costs, enhance export competitiveness and support industrialisation, particularly in non-oil sectors.

Despite its economic size, Nigeria currently handles only about 25 per cent of cargo traffic in West Africa, even though it accounts for more than 60 per cent of the region’s GDP.

Dantsoho described the imbalance as evidence that the country has not fully optimised its potential.

“It is worrisome that Nigeria, despite controlling over 60 per cent of West Africa’s GDP, handles only about 25 per cent of the region’s cargo traffic,” he said.

He added that AfCFTA presents both opportunities and risks, as countries with efficient, technology-driven ports are likely to capture a larger share of trade flows.

Government officials and industry stakeholders, however, expressed optimism that ongoing reforms will reposition Nigeria as a leading maritime hub in Africa.

Oyetola highlighted Nigeria’s strategic advantages, including over 823 kilometres of coastline, extensive inland waterways and its location along the Gulf of Guinea.

“With sustained commitment to these initiatives, Nigeria’s port system will enter a new phase and emerge as a leading maritime logistics hub in Africa,” Dantsoho said.

While progress has been recorded, challenges such as infrastructure gaps, bureaucratic bottlenecks, funding constraints and policy consistency remain.

There are also concerns about whether improvements at the ports will be matched by similar progress in inland logistics, power supply and industrial capacity.

Nonetheless, the government’s policy direction indicates a sustained effort to address these issues through coordinated reforms and strategic investments.

As Nigeria pursues economic diversification, the maritime sector is emerging as a critical frontier, with the success of current reforms expected to play a decisive role in shaping the country’s long-term economic trajectory.