Determined to ensure that the Nigerian ports take advantage of the intra African trade that is expected to increase with the coming into operation of the African Continental Free Trade Area (AfCFTA), the Managing Director of Nigerian Ports Authority (NPA), Dr Abubakar Dantsoho has said that the Authority is taking steps to reposition the Nigerian ports to improve its competitive strategy to stay ahead of its rival ports.
Dr Dantsoho disclosed this in his presentation at the Nigerian-British Chamber of Commerce (NBCC) Maritime and Logistics event in Lagos on Tuesday, with the theme: “Improving the competitiveness of the Nigerian ports in an era of regional integration.”
He said that it is envisaged that intra African trade will significantly increase with the collapse of trade barriers across Africa, saying “it is therefore imperative that the Nigerian ports reposition to be competitive in order not to lose its gateway traffic to the ports.
“Our vision is to be the Maritime Logistics Hub for sustainable port services in Africa,” he affirmed
The NPA MD further said, “In the quest for our nation to optimize the benefits accruable from AFCFTA, there is no gainsaying that port plays a pivotal role as a nodal point in international logistics. Given the fact that port cost is a significant component of freight cost which ultimately affects the prices of goods in the market, this speaks to the imperativeness for our ports to be competitive and efficient.
“This requires strategic collaboration of every player in the port system for this to be actualized,” Dr Dantsoho said.
He explained that port competitiveness is driven mainly by institution, infrastructure and macroeconomics, saying strong institutions; provide the regulatory and governance framework necessary for stable and predictable business operations; while infrastructure is a cornerstone of port competitiveness, influencing both operational efficiency and long-term strategic viability.
“The quality of infrastructure affects transport costs, trade efficiency, and overall competitiveness. Investments in inland terminals, logistic zones, and rail networks can expand a port’s influence beyond its traditional hinterland and bring about efficiency that makes the port competitive,” he said.
Similarly, the NPA MD, noted that the macroeconomic environment of a country is intricately linked to its ports’ performance and competitiveness, saying factors such as inflation, exchange rates, and economic stability influence trade flows and investments.
Dr Dantsoho expressed his gratitude to the Minister of Marine and Blue Economy, Adegboyega Oyetola, for his support to every step the Authority is taking to reposition the Nigerian ports.
He listed the efforts of the NPA to reposition its competitiveness to include:
I. Port Modernisation Project: While saying that it is envisaged that modernization will position Nigerian ports at the edge of competition and improves efficiency, Dr Dantsoho disclosed that aside from the newly developed Lekki Deep Seaport, the remaining six ports in the country are grappling with decrepit infrastructure, ranging from silted channels to collapse breakwaters and quays. “It is consequent upon this that the Authority has embarked on a port modernisation project, aimed at revamping the dilapidated infrastructure. The Lagos Port Complex and Tin Can Island Port Complex will serve as pilot projects.”
ii. Port Community System/National Single Window – This according to him, is a digital collaborative platform that enables seamless exchange of information amongst the many port stakeholders and provides a platform for one-stop shop payments for all activities within the port ecosystem.
He assured that this will reduce paper work and administrative bureaucracy.
The NPA MD further disclosed that NPA in collaboration with the International Maritime Organisation (IMO) is working towards the actualisation of this project. “The Port Community System (PCS) is envisaged to culminate into the National Single Window (NSW) for maximum efficiency and competitiveness,” he said.
iii. Automation of Operations – Dr Dantsoho pointed out that port operations can only be automated with modern and strong infrastructure. For instance, in container operations, modern Ship-to-Shore cranes can only be deployed on strong quay aprons, he said, stressing that “automation of our operations will be a major paradigm shift for our port efficiency. It is expected to reduce the turn-around-time of container vessels to hours instead of days.”
He also disclosed that the Lekki Deep Sea port has been a game changer, saying with the commencement of its operation, NPA’s cargo and vessel traffic has gained traction along with the growth of transshipment traffic.