$1bn port upgrade to address Nigeria’s lost cargo, revenue – NPA MD

Business

…says Nigeria lost N1trn yearly to obsolete infrastructure, lack of automation

THE Managing Director of the Nigerian Ports Authority, NPA, Dr. Abubakar Dantsoho, has explained that the Authority’s $1 billion port modernisation programme was driven by the need to address obsolete infrastructure, congestion and inadequate automation that had cost Nigeria more than N1 trillion annually.

Dantsoho said the modernisation, particularly at the Apapa and Tin Can Island Ports in Lagos, was aimed at reversing the declining competitiveness of Nigerian ports and addressing the disproportionate distribution of cargo between the country’s seaports and those of neighbouring West African countries.

He spoke at a one-day conference organised by the League of Maritime Editors (LOME) in Lagos, with the theme, “Lagos/Eastern: How to Reverse Existing Imbalance in Disproportionate Cargo Vessel Calls.”

The NPA boss presented a paper titled “Port Modernisation: Its Impact on the Maritime Industry.” He was represented at the event by the General Manager, Strategic Planning, NPA, Engr. Seyi Iyawe.

According to Dantsoho, Nigeria controls more than 60 per cent of West Africa’s Gross Domestic Product (GDP), yet only about 25 per cent of regional cargo passes through its seaports.

He said the port modernisation programme was therefore designed to address the structural imbalance and enable Nigeria to take advantage of its economic position within the region.

“Nigeria loses over N1 trillion yearly to a lack of port automation and modern infrastructure, as congestion, delays and administrative rigidities increase logistics costs and discourage shipping lines.

“Without these reforms, Nigeria’s 60 per cent West Africa GDP advantage remains uncaptured,” he said.

The NPA managing director also disclosed that Nigeria lost more than 56 million metric tonnes of cargo between 2014 and 2022, as well as more than N130 billion annually in Customs revenue.

Nigeria losing cargo to regional competitors

Dantsoho attributed the loss of cargo to the age and limitations of critical port infrastructure, noting that the Apapa Port was established nearly 100 years ago, while the Tin Can Island Port is more than 50 years old.

He said Apapa has a draught of about 13 metres, while Tin Can has about 11 metres, making both ports less competitive than some neighbouring facilities.

By comparison, he said, the Port of Lomé in Togo has a draught of 16.6 metres, handled about two million Twenty-foot Equivalent Units (TEUs) in 2024 and recorded a nine-day cargo dwell time.

The Port of Tema in Ghana, he added, has a draught of more than 16 metres and operates an automated scanning system.

Dantsoho said the limitations at Nigerian ports had contributed to prolonged cargo dwell time, which stood at between 18 and 21 days at Apapa and Tin Can, compared with the global benchmark of four days.

“This represents 475 per cent above the global four-day benchmark,” he said.

He also said port charges in Nigeria were between 30 and 40 per cent higher than those of regional competitors such as Lomé and Tema.

According to estimates by Dynamar, stakeholders at Apapa Port alone lost about $55 million daily to congestion-related costs, with shipping lines diverting vessels to ports in Lomé, Cotonou and Tema.

Such diversions, he said, deprived Nigeria of cargo-related revenue and weakened the competitiveness of its maritime sector.

Manual processes worsened situation

The NPA boss said the absence of automation also contributed significantly to the challenges facing the ports.

He explained that, before the reforms, the zero level of automation meant that the Nigeria Customs Service relied on 100 per cent manual inspection at Apapa and Tin Can Island ports.

The situation, he said, created delays, increased logistics costs and negatively affected Nigeria’s standing in international port performance rankings.

One consequence was the absence of Apapa Port from Lloyd’s List global top-100 port rankings since 2016, he noted.

Dantsoho, however, said the situation had begun to change significantly as a result of the ongoing port modernisation programme.

He cited the World Bank’s Container Port Performance Index (CPPI) 2025, released in June 2026, which ranked Apapa and Tin Can Island ports among the world’s 20 most improved seaports over the past five years.

He also said Nigeria’s cargo throughput grew by 24.8 per cent in 2025, describing the increase as the most significant growth recorded in the country’s maritime history.

NPA revenue rises to N1.28trn

According to him, the improvement in port activity has also translated into higher revenue for the NPA.

He said the Authority’s revenue increased from N894.86 billion in 2024 to N1.28 trillion in 2025, with a target of N1.489 trillion for 2026.

Dantsoho further disclosed that Nigeria recorded a trade surplus of N7.54 trillion in the first quarter of 2026.

He attributed part of the improved performance to reforms and digitalisation initiatives implemented by the NPA.

Among them, he highlighted the launch of the Port Community System (PCS) in the first quarter of 2026, which facilitated the introduction of the National Single Window (NSW) platform.

The platform, he explained, provides a unified digital interface for stakeholders operating within the port ecosystem and is expected to reduce paperwork, duplication and delays.

He also cited the Eto electronic truck call-up system, which he said had helped reduce gridlock around the Apapa port axis.

According to him, the road network serving the port was designed to accommodate about 2,400 trucks daily but currently receives more than 7,000 trucks.

NPA restates landlord-port role

Dantsoho assured stakeholders that the NPA would continue to play its strategic role under the landlord port model, including the development, ownership and operation of ports and harbours along Nigeria’s coastline.

He said the Authority would continue to provide safe navigable channels and vessel traffic services while effectively regulating terminal operations, concessionaires and port service providers.

The NPA, he added, would drive further infrastructure investment through public-private partnerships and direct capital programmes.

He also pledged continued investment in maritime digitalisation through initiatives such as the National Single Window, Port Community System and Eto electronic truck call-up system.

On safety and security, Dantsoho said the Authority would continue to implement the International Ship and Port Facility Security (ISPS) Code while enforcing environmental compliance across port facilities.

He said the combined reforms were aimed at making Nigerian ports more competitive, attracting greater vessel calls and cargo volumes, reducing logistics costs and positioning the country to fully exploit its strategic economic position in West Africa.

With reports from businessandtransport

A.I

Aug. 31, 2026

Tags: Dr. Abubakar Dantsoho Engr. Seyi Iyawe. NPA