Shippers’ Council Sounds Alarm on Security and Systemic Failures at Nigerian Ports

The Nigerian Shippers’ Council (NSC) has raised a stark warning about persistent security issues and infrastructural shortcomings that plague Nigerian ports, driving up costs and undermining operational efficiency. Speaking at the 2024 Annual Maritime Journalists’ Seminar in Lagos, NSC Executive Secretary Pius Akutah, represented by Mustapha Zubairu, outlined critical challenges including rampant cargo theft, piracy, and general lawlessness that continue to disrupt port activities.

“Security challenges, including cargo theft, piracy, and general lawlessness, continue to plague Nigerian ports. These risks hinder port operations and raise the cost of doing business,” Akutah remarked. The seminar, organised by First Mediacom Network Limited in partnership with the NSC, explored the challenges and opportunities in a sector seen as essential to Nigeria’s economic aspirations.

Akutah also pointed to outdated infrastructure, with ageing cargo handling equipment, inadequate storage facilities, and poor road networks worsening port congestion. He noted that, while the NSC plays a key regulatory role formalised in 2015, it lacks direct control over physical infrastructure, which is overseen by other agencies. “The NSC’s ability to drive reforms and enhance port operations is constrained by broader infrastructural deficiencies,” he observed.

Amidst these challenges, Akutah highlighted a pressing need for better collaboration among stakeholders, including the Nigerian Ports Authority, Nigeria Customs Service, terminal operators, and shipping companies. This lack of effective coordination, he argued, has bred inefficiencies, policy conflicts, and fragmented oversight. “Improved communication and cooperation among all port stakeholders is essential for more streamlined operations,” Akutah stressed.

Tariff structures and pricing at the ports also remain a difficult balancing act. While the NSC oversees tariff regulation, it is often caught between the competing interests of port operators, shippers, and government entities, all while trying to keep Nigerian ports competitive on the international stage. “Reducing costs for importers and exporters, while ensuring sustainable revenue for port authorities, is a delicate balancing act,” he added.

The digitalisation of port operations has also lagged, according to Akutah, with issues like poor internet infrastructure, resistance to change, and a shortage of skilled personnel stalling progress. These technological gaps are compounded by endemic corruption, as illegal fees and bribery among port officials and stakeholders obstruct the NSC’s regulatory mandate.

At the seminar, Sesan Onileimo, CEO of First Mediacom Network Ltd and convener of the event, described the theme—”The Nigerian Shippers’ Council in Transition: Issues, Prospects, and Challenges”—as a chance for maritime journalists to engage with the NSC’s evolving role, particularly in light of the proposed Nigerian Shipping and Port Economic Regulatory Agency Bill 2023, now nearing enactment.

Adding to the discussion, Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, called for swift regulatory reforms to attract investment, protect consumers, and unlock the maritime sector’s full potential. He criticised high import duties and erratic exchange rate policies as major disincentives to investment, which have led to cargo diversions to neighbouring ports and subsequent job losses in Nigeria.

Yusuf urged for a reevaluation of the sector’s role in the economy, noting its significant, though underreported, potential. Despite the maritime sector contributing as little as 0.05% to Nigeria’s GDP, Yusuf argued it could be a major driver of economic transformation, if only the structural and policy issues were addressed. He appealed to journalists to advocate for this often-overlooked industry, stressing the essential role it could play in Nigeria’s growth trajectory.