Dantsoho: Ports Infrastructure Rejuvenation, Others Heighten Optimism on Improved Trade Facilitation
DANTSOHO, MD, NPA
By Francis Ugwoke
As the technical regulator and landlord of the port system, the Nigerian Ports Authority (NPA) occupies a special place in the promotion of trade facilitation and competitiveness in the West African sub-region. The NPA is the cynosure of all eyes in the efforts to champion ports efficiency in the system. And it is living up to expectations in this role. And that has been the trend over the decades that the federal government implemented the port reform policy in which the seaports were concessioned to the private operators. Under the port reform exercise, the NPA is saddled with the statutory functions of providing marine services while cargo handling is for the concessionaires, otherwise addressed as terminal operators. In effect, everyone appears to be on their track. For NPA, part of these roles include provision of common user facilities such as pilotage, bouyage, towage, internal roads and all that are necessary to ensure safe navigation. The authority has been involved in playing these roles. Some aspects of the statutory functions, such as rehabilitation of some of the obsolete infrastructure which have not been carried out for some years, apparently due to administrative bureaucracy and huge funding outlay required, are now being addressed. To stakeholders, this is cheering news, because of the strong belief that it will promote efficiency, trade facilitation and position Nigerian ports for more competitiveness.
Take-off of Rehabilitation
The management of the NPA has for years been making frantic efforts to secure approval and enough funding for the rehabilitation of the old infrastructure at the ports. In particular, the Lagos and Eastern ports are the targets of the agency. Recently, the Managing Director of the NPA, Dr. Abubakar Dantsoho, announced the readiness of the authority to begin the ports rehabilitation project. In focus are the Apapa, Tin Can Island, Rivers, Onne, Warri and Calabar Port Complexes for the rehabilitation. Dantsoho disclosed at a media event in Lagos organised by the Association of Maritime Journalist of Nigeria (AMJON) that the organization has begun the “finalisation of documentation and commencement of actual works on the $1billion worth construction” project. Dantosho further said that the agency has taken measures in the area of port capacity enlargement by way of “operationalisation of new ports and advancement of green port development”. This, according to him, is in line with mandate given to the organization by President Bola Tinubu through the Ministry of Marine and Blue Economy.
Beyond Infrastructure Rehabilitation
Beyond the rehabilitation, the management of the NPA is looking at new projects, greenfield development efforts. Giving details of the port capacity expansion, Dantsoho disclosed that this includes the development of the Snake Island Port, in addition to the Badagry Deep Seaport, Ondo Deep Seaport and Burutu Ports. These ports are in various stages of progress under the technical guidance of the Nigerian Ports Authority”, he said. Observers believe that the development of these new ports will position Nigeria as a major hub in the West African sub-region. It will no doubt reposition Nigeria’s competitive edge over other seaports in the region. Over the years, Nigeria has faced fierce competition from neighbouring ports of Benin, Ghana and Abidjan. In the past also, we have had to read reports of some Nigerian importers routing their imports through some of these ports because of their level of efficiency. At other times, it was that these seaports had natural draught that can take as much bigger vessels that cannot berth in Nigerian ports. This is one of the reasons that many, including the government favoured the coming on board of the Lekki Deep Seaport. But beyond this, these new ports when operational will no doubt create thousands of jobs directly or indirectly.
Squaring Up for Competition
With the rehabilitation efforts and indeed the new deep seaports, Dantsoho’s eye is on competing favourably to get close to other global ports, including those of the West African sub-region. At the international level, it is definitely off the mic, a big task, considering the level of advancement. More to it is the naturalness of some of the ports in terms of depth. Currently, according to the latest edition of the CPPI (covering 2023) , Yangshan Port in China continues with the lead “as the world’s most efficient container port; East and Southeast Asian ports secured 13 of the top 20 spots”. The Yangshan seaport of Shanghai is the largest automated terminal and a big hub for cargo traffic in China. As at the first half of this year, the terminal had handled 14.02 million TEUs with new record of 7.3% year-on-year increase, reports the Shanghai International Port Group. In the West African sub-region, the competition is between Nigeria, Ghana and Lome. Lagos port has larger capacity, but efforts are needed to compete with Ghana in terms of operational efficiency. Observers believe that this is what the NPA MD has in mind with the ongoing rehabilitation efforts. Observers are of the view that the rehabilitation must be comprehensive to be able to measure up with global ports standard. Globally, standard ports are described as those with advanced infrastructure, integration with global trade networks, smart ports and hub ports. The benefits of having such ports abound. Already, with Lekki Deep Seaport, Nigeria is positioned to compete favourably with Lome, Togo port, where a company owned by MSC had invested about $380m in ports infrastructure. Now, the seaport handles Panamax vessels as well as a transshipment hub for smaller ports in the region. With the rehabilitation effort and the green port projects, expectations are high that Nigeria will be positioned to lead as a transshipment hub in West African subregion.
Dantsoho’s Performance Record
Dantsoho assumed office about a year ago. Since then, he has recorded some achievements, apparently because he has been in the system even before his appointment was announced in July, 2024. Since then, he has been on the forefront of championing export trade growth which is vital for the foreign exchange earnings for the country. In this regard, Dantsoho through various initiatives has made it possible for the country to gain a trade surplus of N5.81 trillion ($3.7billion) in Q3 2024. This was reported by the Nigerian Economic Summit Group (NESG). With the federal government policy on sale of crude oil and other products in Naira with the implementation by the NPA, Billions of Forex earnings which would have been lost to importation have been saved.
Cargo, Ship Traffic on the Rise
Following some of the measures introduced by Dantsoho on assuming office, the seaports have continued to attract both ship and cargo traffic. The ports recorded five percent increase with traffic growing from 3,791 in 2023 to 4,005 in 2024. There was also 15.4% growth in Gross Registered Tonnage (GRT), rising from 123,660,278 to 142,660,418 tons. According to records from NPA, the Lekki Port led the growth, recording a 477.6% increase in ship calls. Similarly, Onne Port equally recorded a 5.8% increase. The record showed that total container throughput showed 9.7% increase, with 1,744,972 TEUs handled in 2024, compared to 1,591,194 TEUs in 2023, according to records from NPA. The report also indicated that containership traffic went up by 12.2percent, in the area of export-laden containers, showing 53.7% rise. There was also remarkable performance in transhipment container traffic, recording 136.5% rise. Industry stakeholders believe that with this record, Nigeria is performing well in trade facilitation in cargo redistribution in the West African sub-region. Records also show that last year, there was increase in cargo throughput. Cargo traffic rose by 45.1percent, increasing from 71,213,197 MT in 2023 to 103,336,863 MT in 2024.
Lekki Port was on the lead again in cargo throughput growth. It was followed by Onne Port with a 9.4% rise and Tin Can Island Port with 7.3% growth. Similar report from the NPA showed that Liquid Bulk cargo accounted for the largest share at 55.6%, while containerized cargo contributed 20.9%.
Observers strongly believe that Dantsoho has done well with the high rise in cargo traffic which was 45.1 per cent, growing from 71,213,197 metric tons in 2023 to 103,336,863 metric tons in 2024.
Applause from Stakeholders
Stakeholders in the ports have been full of applause for Dantsoho for some of the achievements he recorded since assuming office. Being the first Nigerian to be elected as the President of Port Management Association of West & Central Africa (PMAWCA), Dantsoho has made appreciable moves in promoting trade facilitation as well as the welfare of the workers. He has also been part of the moves to ensure that Nigeria wins the Category C seat election in the International Maritime Organisation (IMO). This he has done in his capacity as the President of PMAWCA. But beyond that is the current promotion of the Eastern ports of Rivers, Onne and Calabar ports for more patronage. He has been encouraging importers and exporters to make use of the seaports instead of relying on just Lagos ports. As part of this, he has undertaken investment tour of the Eastern ports leading to expression of interest in Rivers, Calabar and Burutu ports. Already, one of the terminal operators, West Africa Container Terminal (WACT)-APM Terminals Nigeria had recently received Hapag-Lloyd, which is also one of the world’s leading liner shipping companies.
The CEO of APM Terminals Nigeria, Frederik Klinke, described this as an important milestone, a clear indication of the strong partnership between his company and Hapag-Lloyd.
He was quoted saying , “ We in APM Terminals have a very strong belief in the East Nigerian market. We are very proud of the partnerships that we have with our shipping line customers, now, with Hapag Lloyd being among them, and our government partners as well as the customers that we serve in East Nigeria. What we are really trying to do is to lift the East Nigerian market. There is a lot of trade potential that requires better logistic solutions”.
Similarly, the Country Managing Director, Hapag-Lloyd, Himmat Ahlawat, said Nigeria is one of the most important markets.
He said, “We consider Nigeria as one of the most important markets if not the most important in Africa and Eastern Nigeria. Without calling Eastern Nigeria, our ambitions here will remain unfulfilled. In Hapag Lloyd, the biggest priority we have is customer service”.
Dantsoho has also been applauded for what he has done in the area of improving on the working conditions of NPA workers. For instance, on noticing that some workers have been stagnant in one position for too long without promotion, he moved to promote them to their rightful positions. This move has been welcomed by the workers across board, including their labour unions, the Maritime Workers Union (MWUN) and the senior Staff Association of Statutory Corporations and Government Owned companies (SSASGOC). Stakeholders who follow the trend in NPA said Dantsoho has done well in his export trade drives, automation of services, rehabilitation of ports infrastructure, traffic management at the ports with the truck transit parks which has addressed ports congestion. He is also appreciated for the promotion of workers and provision of other benefits. To stakeholders, raising the morale of workers with good condition of service has the magic wand of multiplying the productivity rate in the agency, which in addition to other measures, will boost trade facilitation and efficiency in the ports sector.
As the technical regulator and landlord of the port system, the Nigerian Ports Authority (NPA) occupies a special place in the promotion of trade facilitation and competitiveness in the West African sub-region. The NPA is the cynosure of all eyes in the efforts to champion ports efficiency in the system. And it is living up to expectations in this role. And that has been the trend over the decades that the federal government implemented the port reform policy in which the seaports were concessioned to the private operators. Under the port reform exercise, the NPA is saddled with the statutory functions of providing marine services while cargo handling is for the concessionaires, otherwise addressed as terminal operators. In effect, everyone appears to be on their track. For NPA, part of these roles include provision of common user facilities such as pilotage, bouyage, towage, internal roads and all that are necessary to ensure safe navigation. The authority has been involved in playing these roles. Some aspects of the statutory functions, such as rehabilitation of some of the obsolete infrastructure which have not been carried out for some years, apparently due to administrative bureaucracy and huge funding outlay required, are now being addressed. To stakeholders, this is cheering news, because of the strong belief that it will promote efficiency, trade facilitation and position Nigerian ports for more competitiveness.
Take-off of Rehabilitation
The management of the NPA has for years been making frantic efforts to secure approval and enough funding for the rehabilitation of the old infrastructure at the ports. In particular, the Lagos and Eastern ports are the targets of the agency. Recently, the Managing Director of the NPA, Dr. Abubakar Dantsoho, announced the readiness of the authority to begin the ports rehabilitation project. In focus are the Apapa, Tin Can Island, Rivers, Onne, Warri and Calabar Port Complexes for the rehabilitation. Dantsoho disclosed at a media event in Lagos organised by the Association of Maritime Journalist of Nigeria (AMJON) that the organization has begun the “finalisation of documentation and commencement of actual works on the $1billion worth construction” project. Dantosho further said that the agency has taken measures in the area of port capacity enlargement by way of “operationalisation of new ports and advancement of green port development”. This, according to him, is in line with mandate given to the organization by President Bola Tinubu through the Ministry of Marine and Blue Economy.
Beyond Infrastructure Rehabilitation
Beyond the rehabilitation, the management of the NPA is looking at new projects, greenfield development efforts. Giving details of the port capacity expansion, Dantsoho disclosed that this includes the development of the Snake Island Port, in addition to the Badagry Deep Seaport, Ondo Deep Seaport and Burutu Ports. These ports are in various stages of progress under the technical guidance of the Nigerian Ports Authority”, he said. Observers believe that the development of these new ports will position Nigeria as a major hub in the West African sub-region. It will no doubt reposition Nigeria’s competitive edge over other seaports in the region. Over the years, Nigeria has faced fierce competition from neighbouring ports of Benin, Ghana and Abidjan. In the past also, we have had to read reports of some Nigerian importers routing their imports through some of these ports because of their level of efficiency. At other times, it was that these seaports had natural draught that can take as much bigger vessels that cannot berth in Nigerian ports. This is one of the reasons that many, including the government favoured the coming on board of the Lekki Deep Seaport. But beyond this, these new ports when operational will no doubt create thousands of jobs directly or indirectly.
Squaring Up for Competition
With the rehabilitation efforts and indeed the new deep seaports, Dantsoho’s eye is on competing favourably to get close to other global ports, including those of the West African sub-region. At the international level, it is definitely off the mic, a big task, considering the level of advancement. More to it is the naturalness of some of the ports in terms of depth. Currently, according to the latest edition of the CPPI (covering 2023) , Yangshan Port in China continues with the lead “as the world’s most efficient container port; East and Southeast Asian ports secured 13 of the top 20 spots”. The Yangshan seaport of Shanghai is the largest automated terminal and a big hub for cargo traffic in China. As at the first half of this year, the terminal had handled 14.02 million TEUs with new record of 7.3% year-on-year increase, reports the Shanghai International Port Group. In the West African sub-region, the competition is between Nigeria, Ghana and Lome. Lagos port has larger capacity, but efforts are needed to compete with Ghana in terms of operational efficiency. Observers believe that this is what the NPA MD has in mind with the ongoing rehabilitation efforts. Observers are of the view that the rehabilitation must be comprehensive to be able to measure up with global ports standard. Globally, standard ports are described as those with advanced infrastructure, integration with global trade networks, smart ports and hub ports. The benefits of having such ports abound. Already, with Lekki Deep Seaport, Nigeria is positioned to compete favourably with Lome, Togo port, where a company owned by MSC had invested about $380m in ports infrastructure. Now, the seaport handles Panamax vessels as well as a transshipment hub for smaller ports in the region. With the rehabilitation effort and the green port projects, expectations are high that Nigeria will be positioned to lead as a transshipment hub in West African subregion.
Dantsoho’s Performance Record
Dantsoho assumed office about a year ago. Since then, he has recorded some achievements, apparently because he has been in the system even before his appointment was announced in July, 2024. Since then, he has been on the forefront of championing export trade growth which is vital for the foreign exchange earnings for the country. In this regard, Dantsoho through various initiatives has made it possible for the country to gain a trade surplus of N5.81 trillion ($3.7billion) in Q3 2024. This was reported by the Nigerian Economic Summit Group (NESG). With the federal government policy on sale of crude oil and other products in Naira with the implementation by the NPA, Billions of Forex earnings which would have been lost to importation have been saved.
Cargo, Ship Traffic on the Rise
Following some of the measures introduced by Dantsoho on assuming office, the seaports have continued to attract both ship and cargo traffic. The ports recorded five percent increase with traffic growing from 3,791 in 2023 to 4,005 in 2024. There was also 15.4% growth in Gross Registered Tonnage (GRT), rising from 123,660,278 to 142,660,418 tons. According to records from NPA, the Lekki Port led the growth, recording a 477.6% increase in ship calls. Similarly, Onne Port equally recorded a 5.8% increase. The record showed that total container throughput showed 9.7% increase, with 1,744,972 TEUs handled in 2024, compared to 1,591,194 TEUs in 2023, according to records from NPA. The report also indicated that containership traffic went up by 12.2percent, in the area of export-laden containers, showing 53.7% rise. There was also remarkable performance in transhipment container traffic, recording 136.5% rise. Industry stakeholders believe that with this record, Nigeria is performing well in trade facilitation in cargo redistribution in the West African sub-region. Records also show that last year, there was increase in cargo throughput. Cargo traffic rose by 45.1percent, increasing from 71,213,197 MT in 2023 to 103,336,863 MT in 2024.
Lekki Port was on the lead again in cargo throughput growth. It was followed by Onne Port with a 9.4% rise and Tin Can Island Port with 7.3% growth. Similar report from the NPA showed that Liquid Bulk cargo accounted for the largest share at 55.6%, while containerized cargo contributed 20.9%.
Observers strongly believe that Dantsoho has done well with the high rise in cargo traffic which was 45.1 per cent, growing from 71,213,197 metric tons in 2023 to 103,336,863 metric tons in 2024.
Applause from Stakeholders
Stakeholders in the ports have been full of applause for Dantsoho for some of the achievements he recorded since assuming office. Being the first Nigerian to be elected as the President of Port Management Association of West & Central Africa (PMAWCA), Dantsoho has made appreciable moves in promoting trade facilitation as well as the welfare of the workers. He has also been part of the moves to ensure that Nigeria wins the Category C seat election in the International Maritime Organisation (IMO). This he has done in his capacity as the President of PMAWCA. But beyond that is the current promotion of the Eastern ports of Rivers, Onne and Calabar ports for more patronage. He has been encouraging importers and exporters to make use of the seaports instead of relying on just Lagos ports. As part of this, he has undertaken investment tour of the Eastern ports leading to expression of interest in Rivers, Calabar and Burutu ports. Already, one of the terminal operators, West Africa Container Terminal (WACT)-APM Terminals Nigeria had recently received Hapag-Lloyd, which is also one of the world’s leading liner shipping companies.
The CEO of APM Terminals Nigeria, Frederik Klinke, described this as an important milestone, a clear indication of the strong partnership between his company and Hapag-Lloyd.
He was quoted saying , “ We in APM Terminals have a very strong belief in the East Nigerian market. We are very proud of the partnerships that we have with our shipping line customers, now, with Hapag Lloyd being among them, and our government partners as well as the customers that we serve in East Nigeria. What we are really trying to do is to lift the East Nigerian market. There is a lot of trade potential that requires better logistic solutions”.
Similarly, the Country Managing Director, Hapag-Lloyd, Himmat Ahlawat, said Nigeria is one of the most important markets.
He said, “We consider Nigeria as one of the most important markets if not the most important in Africa and Eastern Nigeria. Without calling Eastern Nigeria, our ambitions here will remain unfulfilled. In Hapag Lloyd, the biggest priority we have is customer service”.
Dantsoho has also been applauded for what he has done in the area of improving on the working conditions of NPA workers. For instance, on noticing that some workers have been stagnant in one position for too long without promotion, he moved to promote them to their rightful positions. This move has been welcomed by the workers across board, including their labour unions, the Maritime Workers Union (MWUN) and the senior Staff Association of Statutory Corporations and Government Owned companies (SSASGOC). Stakeholders who follow the trend in NPA said Dantsoho has done well in his export trade drives, automation of services, rehabilitation of ports infrastructure, traffic management at the ports with the truck transit parks which has addressed ports congestion. He is also appreciated for the promotion of workers and provision of other benefits. To stakeholders, raising the morale of workers with good condition of service has the magic wand of multiplying the productivity rate in the agency, which in addition to other measures, will boost trade facilitation and efficiency in the ports sector.
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