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Port modernization, renewal of concession agreement, facility upgrade to top NPA’s agenda in 2025

On July 12, 2024 when President Bola Tinubu announced the appointment of Dr. Abubakar Dantsoho as the new Managing Director of the Nigerian Ports Authority (NPA), stakeholders in the Maritime sector saw it as a fresh breath in the nation’s port system.

The sigh of relief may not be unconnected with Dantsoho’s several years of experience in the sector.

Dantsoho’s appointment was greeted with loud applause from all quarters as stakeholders in the industry saw his appointment as a round peg in a round hole.

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With over 25 years of experience, Dantsoho’s journey into the nation’s maritime industry started in 1992, when he did his one-year National Youth Service Corps (NYSC) placement at the NPA.

His experience in maritime technology, international transport and port management makes him acceptable in the eyes of Maritime watchers.

With this in his kitty, there is no doubt that a lot will be expected of him in 2025. Top on the list are port modernization, renewal of concession agreements, facility upgrade, among others.

Repositioning Nigerian Ports for Greater Efficiency, Competitiveness

On assumption of office, Dr. Dantsoho promised to reposition the nation’s ports to achieve maximum level of contributions to the national economy.

With dwindling fortunes from the oil sector, the nation’s marine and blue economy sector is adjudged as next in terms of contributions to the national economy.

This explains why the current NPA leadership is striving so hard to meet the expectations of the government.

Already, the NPA boss, Dantsoho, has unveiled his vision for the development of the nation’s ports. On assuming office, Dantsoho affirmed his commitment to reposition the nation’s ports.

The expectation is that when this is done, the nation’s ports will have a clear lead in the West and Central African region and put behind the current record of the Abidjan port.

PORT FACILITIES UPGRADE

The Federal Government, in December 2024, disclosed plans to upgrade port facilities to safeguard shipping and drive operational efficiency in the country’s maritime sector.

The Minister of Marine and Blue Economy, Gboyega Oyetola explained that increased investment in the sector would help Nigeria to build capacity and ensure the country remained competitive in the global seaborne trade.

According to the minister, the Federal Ministry of Marine & Blue Economy is taking proactive measures to enhance the maritime sector by embracing emerging technologies and fostering innovation to drive growth.

He revealed that Key among the initiatives of the ministry is digitalization and automation of port operations to enhance safety, security, and efficiency as well as performance optimization to reduce costs and increase reliability, and the adoption of innovative practices to propel the industry towards sustainable development.

The former governor of Osun State maintained that President Bola Tinubu was investing heavily in port modernisation to reduce inefficiencies, lower operational costs, and improve safety in the ports.

He explained that the port upgrades were being financed through public-private partnership (PPP) arrangements.

Oyetola said the government had also made significant progress in creating a conducive environment for port operations by aligning its policies with global best practices.

RENEWAL OF CONCESSION AGREEMENTS

Port workers, in September 2024, expressed displeasure over the Federal Government’s continuous delay in the renewal of the concession licenses of the terminal operators at the nation’s seaports.

To them, the uncertainty surrounding the delay in the renewal of the operating licenses of operators of port terminals is currently impacting negatively on port operations.

The licenses expired after reaching the first 10 years of handling cargo in the ports, and were extended in 2016 for another five years each but the five-year extension also expired in 2021.

Adewale Adeyanju, president of the Maritime Workers Union of Nigeria (MWUN) made this known at the 2024 Dockworkers Day organised recently by the Shipping Correspondents Association of Nigeria (SCAN) in collaboration with the Maritime Workers Union of Nigeria, in Lagos.

He said workers are determined to see the signing of the long overdue licenses by the Federal Government. He appealed to the Federal Government to ensure that the agreements were signed as soon as possible for the employment of dockworkers to be secured.

PORT MODERNIZATION

The NPA made giant strides in port modernization through automation and infrastructure upgrades. Initiatives like the digitization of the Apapa Port entry process significantly reduced congestion.

In July 2024, the NPA piloted its Port Digitization Program at the Onne Port, leading to a 25% increase in cargo handling efficiency. Yet, PFSON delegates highlighted the need for a comprehensive policy to address the bottlenecks caused by overlapping regulatory frameworks and bureaucratic delays.

REPAIR OF DILAPIDATED PORT QUAYSIDE

The Federal Government also bemoaned the collapsing state of some port terminals inside the Tin-Can Island Port in Lagos. This is even as it said that palliatives used in cushioning the collapsing berths and quays are no longer effective.

The government also revealed that efforts would be geared towards repairing the failed portions without disturbing port operations.

Similarly, President Bola Ahmed Tinubu had in January 2024, directed the Federal Ministry of Works and Housing to carry out urgent and comprehensive repair of port access roads across the country, including those at the Lagos Port Complex and Tin-Can Island Port Complex, both in Lagos.

The Minister of Marine and Blue Economy, Adegboyega Oyetola disclosed in Lagos that dilapidated port access roads increase the cost of internal logistics for importers and exporters.

He also assured of the government’s commitment to making dry ports located in various parts of the country functional, even as he tasked shippers to make more use of the facilities.

“The dry ports are spread all over the country. They are still building more. If we are able to do that, and we ensure we use rail most of the time, the congestion of the road particularly which leads to the port will be minimised,” he said.

Oyetola said collaboration remains germane in achieving trade facilitation and the security of the internal supply chain.

He emphasised the need to integrate sustainability into policies and strategies, bolster investments in ports, research, and technology, and, most importantly, foster inclusive alliances among stakeholders and partners.

He said the new Nigeria Customs Service Act 2023 recognises opportunities, addresses challenges, and encourages partnership between the public and private sectors.

 

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Update: In 2025, Nigerians have been approved to earn US Dollars as salary while living in Nigeria.


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