Spread the love

INTEGRATION

A PRESENTATION MADE BY THE MANAGING DIRECTOR OF

THE NIGERIAN PORTS AUTHORITY AT THE NIGERIANBRITISH CHAMBER OF COMMERCE (NBCC) MARITIME AND LOGISTICS EVENTS, NBCC PLAZA, LEKKI PHASE I – LAGOS ON 4TH MARCH, 2025.

1. INTRODUCTION

It is with great pleasure I stand before you on this auspicious occasion to make this presentation titled, “improving the competitiveness of the Nigerian Ports in an era of regional integration.”

The seaports as we already know are logistic nodes accommodating sea going vessels and are characterised by functional and spatial clustering of cargo transport, storage and transformation processes linked to global supply chain. The Nigerian ports are a part of this global logistics nodes, hence the need to acknowledge they are in competition.

Essentially, Port competitiveness is providing efficient port service at the right price. The competitive position of a port is determined by its competitive offering to the host of Shippers and Shipping Lines for specific trade route, geographical region and other parts to which the port is connected. Some of the key determinants include: – Strategic Port Positioning

– Port Charges

– Terminal Efficiency

– Quality of Service

– Hinterland Connectivity.

For a seaport to maintain its market position, it should improve its competitive strategy to stay ahead of its rival ports. It should respond to new requirements of Shipping Lines and other port users and consequently adapt to the dynamics of shipping and port operations.

–

2. AFCFTA AND AFRICA REGIONAL INTEGRATION

The African Continental Free Trade Agreement is a trade agreement among countries of the African Union, to eliminate tariffs, quotas and other trade restrictions on goods traded between the 55 African countries. It is expected to create a single continental market for goods and services, with free movement of factors of production and investments, and thus pave the way for accelerating the establishment of a continental customs union. It was signed in Kigali, Rwanda, on 21 March 2018. Some of the key fundamentals of the Agreement are as indicated below:

I. The Agreement is expected to be organic as future amendments and updates are possible.

II. The Agreement is modelled after the principles of the World Trade Organization/GATTS.

III. It has all the trappings of Custom Union and Common Market.

IV. Other key non-exhaustive underlying principles that underpin the AFCFTA include: 1) the Most-FavoredNation Treatment 2) the Rules of Origin 3)AntiDumping and Countervailing Measure which provides trade remedies and remedial actions against imports which are detrimental to local industries.

The African Continental Free Trade Area (AfCFTA) is viewed by many as a threat to the Nigerian ports as it seeks to collapse all trade barriers, not only within the sub region but the entire continent. This collapse will allow for free flow of goods and services across the continent. It is envisaged that the intra

African trade will significantly increase with this development. It is therefore imperative that the Nigerian ports reposition itself 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.

3. KEY DRIVERS OF PORT COMPETITIVENESS

Although many see port competitiveness as users’ perception but studies have shown that is largely driven by some of these factors:

i. Institutions – Strong institutions provide the regulatory and governance framework necessary for stable and predictable business operations. A case in point is the incessant change in the official exchange rate used by the Nigeria Customs Service for the clearance of cargo in our ports due to currency instability. The institutional environment affects how other factors like connectivity and location are leveraged to improve port competitiveness. Strong institutions help to coordinate all agencies of government in the ports for ease of doing business.

ii. Infrastructure – 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.

iii. Macroeconomic Environment – The macroeconomic environment of a country is intricately linked to its ports’ performance and competitiveness. Factors such as inflation, exchange rates, and economic stability influence trade flows and investments. The macroeconomic environment interacts with social factors like education and income disparity which has a correlation with skilled labour that can adopt new technologies in port operations to enhance performance.

4. EFFORTS OF NIGERIAN PORTS AUTHORITY TO IMPROVING COMPETITIVENESS.

i. Port Modernization Project – Aside 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 modernization project, aimed at revamping the dilapidated infrastructure. The Lagos Port Complex and Tin Can Island Port Complex will serve as pilot projects.

It is envisaged that the modernisation will position Nigerian ports at the edge of competition with improves efficiency.

ii. Port Community System/National Single

Window – This is a digital collaborative platform that enables seamless exchange of information amongst the many port stakeholders and provide a platform for one-stop shop payments for all activities within the port eco-system. This will reduce paper work and administrative bureaucracy.

The Nigerian Ports Authority 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.

iii. Automation of Operations – 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. 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.

iv. Development of Deep-Sea Ports – The Lekki Deep Sea port has been a game changer. With the commencement of its operation, NPA’s cargo and vessel traffic has gained traction along with the growth of transshipment traffic.

Suffices to say that there a few new Deep seaport projects underway; the Badagry, Ibom, Calabar etc. With the right and skilled manpower deployed to these new ports, Nigerian ports will certainly be competitive.

v. Export Processing Terminals (EPTs) – The

Nigerian Ports Authority in collaboration with the Nigeria Customs Service approved the establishment of six Export Processing Terminals (EPTs) in the Lagos area. All export cargoes are processed and certified fit before proceeding to the ports for loading on vessels. The establishment of the EPTs has seen our export grown overtime.

vi. Truck E-Call up System (Trucks Transit Park/Eto) – There is a correlation between port operation and hinterland evacuation of cargo. In order to clear the encumbrances in the port access corridor in the Lagos Pilotage District, the Authority engaged the services of Messrs. Trucks Transit Park (TTP) for real-time solution to the hitherto congestion caused by port bound trucks. Over 70,000 trucks have registered with the company, where they are electronically scheduled to deliver containers in the ports.

This major has freed up the port access roads in Lagos and has greatly improved on the ease of doing business.

5. CONCLUSION

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.

Efficiency which is always work in progress is not negotiable for the Authority, we will continue to work hard at it to make our ports competitive, not only in the Sub Region but within the continent in line with our vision.