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By Gloria Ikibah

Nigeria is stepping up efforts to reposition itself as a leading maritime hub in West Africa, with a broad reform agenda focused on modernising its ports and unlocking the potential of the blue economy.

The push, driven by the federal government under President Bola Tinubu, combines policy changes, infrastructure upgrades and institutional restructuring aimed at strengthening the country’s role in regional trade, particularly within the framework of the African Continental Free Trade Area .

At the heart of the strategy is a plan to transform port operations, expand capacity and improve efficiency in order to attract a larger share of cargo traffic across the region.

For years, Nigeria’s ports have handled the bulk of the nation’s international trade, accounting for more than 90 per cent of cargo by volume. However, persistent challenges such as congestion, ageing infrastructure and fragmented processes have weakened their competitiveness, allowing smaller neighbouring countries to gain ground.

Authorities are now seeking to reverse that trend through coordinated reforms spanning legislation, financing, regulation and digital systems, in what industry observers describe as a long-overdue reset of the maritime sector.

Speaking at an industry forum in Lagos, Managing Director of the Nigerian Ports Authority, Abubakar Dantsoho, indicated that the country’s port system must adapt to the realities of a more integrated African market if it is to remain relevant and competitive.

He said: “The time has come for a paradigm shift in the structure of Nigeria’s economy towards the full utilisation of our marine resources. Our port system, if properly harnessed, can serve as a major driver of economic growth”.

Under AfCFTA, where trade barriers are steadily being dismantled, Dantsoho cautioned that efficiency, not geography, will determine which countries dominate cargo flows.

“Nigeria’s geographical advantage alone is no longer sufficient.

“Efficiency, speed, innovation and reliability will define leadership in this new era,” he said.

Nigeria’s drive to transform its maritime sector has gathered pace following an early policy shift under President Bola Tinubu, marked by the establishment of the Federal Ministry of Marine and Blue Economy. The move signalled a broader rethink of the country’s economic priorities, with a focus on harnessing the vast potential of its coastal and marine resources.

The new ministry, led by Adegboyega Oyetola, was created to bring together previously scattered responsibilities within the sector and unlock an estimated multi-trillion-dollar blue economy opportunity.

Since then, the government has rolled out a layered reform plan that blends infrastructure development with policy changes. A key component of this effort is an ambitious port modernisation programme, backed by both the executive and the legislature.

As part of this, the House of Representatives approved a one-billion-dollar loan request to support the rehabilitation of the Lagos Port Complex and Tin Can Island Port, two of Nigeria’s most vital trade gateways. The intervention is aimed at tackling long-standing infrastructure gaps, improving operational efficiency and enhancing the country’s competitiveness in global shipping.

The overhaul is also tied to wider economic objectives under the National Integrated Infrastructure Master Plan, with a strong emphasis on boosting non-oil exports and diversifying trade.

On the ground, the Nigerian Ports Authority has begun targeted improvements at Apapa and Tin Can Island, focusing on expanding berths, upgrading cargo handling systems and cutting down vessel waiting times.

The modernisation effort is not limited to Lagos. Plans are already in motion to extend upgrades to ports in Warri, Port Harcourt, Onne and Calabar, in what officials describe as a deliberate push for more balanced development across the country’s maritime network.

“We are committed to a balanced and inclusive development of port infrastructure across the country,” he said, noting that nationwide upgrades will enhance connectivity and stimulate regional economic growth.

In parallel, new deep seaports are being developed in multiple coastal states, including Bayelsa, Cross River, Akwa Ibom and Ondo, to expand capacity and decongest existing facilities.

The emergence of deep seaports such as Lekki Port is already reshaping Nigeria’s maritime landscape, enabling the handling of larger vessels and increasing cargo throughput—key requirements for competing in global shipping networks.

Infrastructure alone, however, is not the focus of the reforms. The government is also pushing an aggressive digitalisation agenda aimed at eliminating inefficiencies associated with manual processes.

Key initiatives include the deployment of a Port Community System (PCS) and the National Single Window platform, both designed to integrate stakeholders, streamline documentation and enhance transparency.

Industry experts say these systems could significantly reduce cargo clearance times and lower the cost of doing business—longstanding concerns among importers and exporters.

The push toward a “paperless, technology-driven port environment” is expected to improve turnaround time, curb corruption and enhance Nigeria’s attractiveness as a logistics hub.

Operational reforms are also targeting reduced cargo dwell time, faster clearance processes and improved service delivery across terminals.

Recognising that port efficiency extends beyond quay walls, the government is investing in multimodal logistics to improve cargo evacuation and inland connectivity.

Rail integration, inland dry ports, barging operations and dedicated export corridors are being expanded to ease congestion and ensure seamless movement of goods across the country.

Dantsoho stressed that without efficient hinterland connectivity, gains made at the ports would be difficult to sustain, an acknowledgment of the systemic challenges that have historically undermined Nigeria’s logistics chain.

Another critical pillar of the reform agenda is maritime security, which has seen notable improvements in recent years.

Nigeria has recorded over four years without piracy incidents, a development attributed to the Deep Blue Programme and enhanced surveillance systems.

This progress has significantly boosted investor confidence, creating a more stable environment for maritime operations and infrastructure development.

Private sector participation is also being actively encouraged, with the NPA adopting project financing models to bridge funding gaps and accelerate development.

“We are open to private sector participation through project financing. This approach is already improving efficiency and providing access to funding for critical infrastructure,” Dantsoho said.

The early results of these reforms are beginning to reflect in revenue performance and sectoral growth.

According to Oyetola, agencies under the ministry increased their combined revenue from about N700.79 billion in 2023 to approximately N1.83 trillion in 2025, a surge attributed to improved efficiency, transparency and regulatory reforms.  Beyond revenue, the broader economic implications are significant.

Efficient ports are expected to reduce logistics costs, boost export competitiveness and support Nigeria’s industrialisation drive, particularly in non-oil sectors.

Analysts argue that with AfCFTA opening up a continental market, Nigeria’s ability to handle increased trade volumes efficiently could determine its position in Africa’s economic hierarchy.

Despite its size and economic weight, Nigeria currently handles only about 25 per cent of cargo traffic in West Africa, even though it accounts for more than 60 per cent of the region’s GDP.

Dantsoho described this imbalance as a clear indication that the country has not fully optimised its potential.

“It is worrisome that Nigeria, despite controlling over 60 per cent of West Africa’s GDP, handles only about 25 per cent of the region’s cargo traffic. This clearly shows that we have not fully optimised our potential,” he said.

The AfCFTA presents both an opportunity and a risk. Countries with efficient, technology-driven ports are likely to capture a larger share of trade flows, while those lagging behind could be sidelined.

Nigeria’s current reform push is therefore as much about catching up as it is about leading.

Both government officials and industry stakeholders are optimistic that the ongoing reforms will reposition Nigeria as a leading maritime hub in Africa.

Oyetola has repeatedly pointed to the country’s strategic location, extensive coastline and large market as natural advantages that can be leveraged for growth.

“With over 823 kilometres of coastline, extensive inland waterways and a prime location along the Gulf of Guinea, Nigeria is uniquely positioned to harness the immense potential of the marine and blue economy,” he said.

Dantsoho echoed this sentiment, expressing confidence that sustained reforms will usher Nigeria into a new phase of maritime competitiveness.

“With sustained commitment to these initiatives, Nigeria’s port system will enter a new phase and emerge as a leading maritime logistics hub in Africa,” he assured.

Despite visible progress in the maritime overhaul, a number of obstacles continue to threaten the pace and success of the reforms. Persistent infrastructure shortfalls, administrative bottlenecks, limited funding and the need for consistent policy direction remain key concerns.

There is also growing debate over whether improvements at the nation’s ports will be matched by progress in critical supporting sectors such as inland transport networks, electricity supply and industrial capacity, all of which are essential to fully realise the gains of a modern maritime system.

Even so, current policy direction points to a deliberate attempt to confront these challenges through coordinated reforms and targeted investment.

As the country pushes to diversify its economy and compete more effectively within the region, the blue economy is increasingly seen as a strategic growth area.

The combination of policy shifts, infrastructure development and institutional restructuring underway represents one of the most far-reaching efforts in recent years to reposition the sector.

If maintained, these initiatives could significantly alter Nigeria’s standing in African trade, turning its ports into more efficient drivers of economic activity.

With regional competition intensifying, the stakes are high, and Nigeria’s bet on its maritime sector may well influence its economic path for years to come.