Nigerian lawmakers raise alarm over $7 Billion annual loss due to port mismanagement

Nigerian lawmakers have expressed concerns as the country is losing a whopping 7 billion dollars annually to inefficiencies and poor management of the nation’s ports.

The concerns were raised by two House of Representatives members – Hon. Julius Ihonvbare and Hon Ibrahim A. Isiaka at the resumption of plenary on Tuesday, December 19, 2023, in Abuja.

According to them, Nigeria’s seaports receive barely 10% of West African imports out of 60 percent destined for Nigeria, while others are lost to neigbouring countries.

The two lawmakers said there was a need for the House to carry out a comprehensive investigation to unravel the gaps and opportunities lost by the country annually.

During the motion presentation, Hon. Ihonvbare underscored the crucial role of the maritime sector in Nigeria’s economic framework. He expressed concern about the suboptimal utilization of seaports, identifying it as a factor contributing to substantial potential revenue loss that could significantly bolster the nation’s Gross Domestic Product (GDP).

Highlighting the issue, he stated, “Nigeria’s seaports currently handle just 10% of West African imports, resulting in a substantial annual economic loss of $7 billion attributed to poor management and inefficiencies.”

Lawmakers raised questions about the failure to provide adequate infrastructure and alleviate congestion in Lagos ports. They expressed concerns about the feasibility of developing other ports such as Calabar, Port Harcourt, Warri, and Koko to ease pressure on Lagos ports and function as regional import hubs.

Emphasizing the necessity for enhanced capacity and modernization in cargo and maritime operations, Hon. Ihonvbare cited examples of how neighboring ports, like the Port of Lomé in Togo, have surpassed Nigerian ports due to modernization reforms and deep draught capabilities.

He added, “Nigeria’s major seaports in Lagos lack the depth to accommodate larger vessels, unlike modern ports such as the Port of Lomé with a draught of 16.60 meters capable of handling third-generation ships. Apapa port, operating with a 13.5 meters draught, faces limitations in receiving vessels with larger container capacities.”

The House consequently passed a resolution, tasking its Committees on Port and Harbours, National Planning and Economic Development, Maritime Safety Education and Administration, and Nigerian Shippers’ Council to launch an extensive probe into the challenges obstructing the full realization of economic potential in Nigeria’s Ports and Harbours, as well as other areas within the Blue Economy sector.

The House of Representatives emphasized the urgency of addressing these port inefficiencies to revitalize the economy and harness the untapped potential in Nigeria’s maritime industry.