Akutah: Role of NPERA in Ensuring Equitable Cargo Distribution Across Nigerian Ports
Dr. Akutah
Introduction
Nigeria’s maritime sector occupies a strategic position in the country’s economic development. As a major trading nation, Nigeria depends heavily on an efficient port system for the movement of imports and exports, the supply of industrial inputs, the distribution of consumer goods and the connection of Nigerian businesses to regional and global markets.
Yet, for many years, the Nigerian port system has faced a structural challenge: the concentration of cargo in a limited number of ports, particularly the Lagos port complex, despite the existence and development of other seaports and emerging port infrastructure across the country.
This concentration has consequences beyond congestion at the ports. It places pressure on road infrastructure, increases logistics costs, contributes to cargo dwell time, raises the cost of doing business and limits the economic benefits that could accrue to other port locations and their surrounding communities.
The emergence of facilities such as Lekki Deep Sea Port, alongside the established ports in the Eastern and Western regions, creates an opportunity for Nigeria to develop a more balanced and competitive port system. However, infrastructure alone cannot guarantee equitable cargo distribution. What is required is a regulatory and commercial environment in which shipping lines, cargo owners, terminal operators, freight forwarders and other stakeholders can make rational choices based on efficiency, cost, connectivity and service quality.
Nigerian Shippers’ Council (NSC) as Port Economic Regulator and Trade Facilitator.
The Council is Nigeria’s Port Economic Regulator and a trade-facilitation agency. Its responsibilities include promoting fair trade practices, protecting shippers’ interests, regulating economic activities at the ports, encouraging competition, monitoring service standards and helping to create a predictable environment for trade.
The central argument of this paper is that equitable cargo distribution should not mean administrative or politically imposed sharing of cargo among Nigerian ports. Rather, it should mean creating a competitive, transparent and efficient port environment in which cargo can flow to the ports best positioned to handle it, while preventing discriminatory practices, artificial restrictions and market distortions that favour one port or corridor over another.
1. Understanding Equitable Cargo Distribution
Equitable cargo distribution is sometimes misunderstood as a directive that shipping lines or importers must distribute a fixed percentage of cargo among Nigeria’s ports.
That approach would be problematic.
Cargo follows commercial logic. Importers consider proximity to markets, port charges, vessel accessibility, terminal efficiency, customs processes, road and rail connections, security, cargo handling capacity and overall logistics costs.
Therefore, the objective should be competitive cargo distribution rather than forced cargo allocation.
An equitable port system should ensure that:
• no port is deliberately disadvantaged by discriminatory commercial practices;
• shipping lines have reasonable freedom to call at ports based on commercial and operational considerations;
• importers and exporters have genuine choices among viable ports;
• port charges and service standards are transparent and predictable;
• infrastructure investments are matched with cargo-generating economic activity;
• road, rail, inland waterways and dry-port connections support the movement of cargo beyond the seaports; and
• ports compete on service quality, efficiency and cost rather than regulatory privilege.
This approach is consistent with the NSC’s economic regulatory functions, particularly its mandate to encourage competition, prevent abuse of dominant market positions, promote efficiency and ensure accessible, affordable, stable and predictable port services.
2. The Nigerian Shippers’ Council as a Trade Facilitator
The evolution of the NSC from an organisation primarily concerned with protecting shippers’ interests into the country’s Port Economic Regulator has given it a central role in the development of Nigeria’s port economy.
The Council was appointed Port Economic Regulator in February 2014 under the Federal Government’s port reform programme. Its regulatory responsibilities include control and oversight of tariffs, rates, charges, setting standards and other economic services in the port sector.
Its role as a trade facilitator is particularly significant because trade facilitation is not simply about moving ships and containers. It is about reducing the time, cost, uncertainty and administrative obstacles associated with moving goods across borders and through the logistics chain.
The Council’s functions therefore have a direct bearing on cargo distribution.
Where a port is expensive, unpredictable, congested or difficult to use, cargo owners and shipping lines will naturally gravitate towards alternative ports or, where alternatives are weak, continue using the congested port despite the additional cost.
Consequently, the NSC’s regulatory interventions can influence whether Nigeria operates a genuinely competitive multi-port system.
3. Promoting Competition Among Nigerian Ports
One of the most important ways the NSC can promote equitable cargo distribution is by strengthening competition among ports and port service providers.
The Council’s statutory regulatory functions expressly include encouraging competition and guarding against monopoly and abuse of dominant market positions.
This is crucial because cargo concentration can become self-reinforcing.
A port with more cargo attracts more shipping services. More shipping services attract more cargo. Higher cargo volumes encourage investment in terminals and logistics services, which further increases the port’s attractiveness. The reverse can also happen.
A port with insufficient cargo may experience fewer vessel calls, weaker commercial incentives, inadequate ancillary services and declining attractiveness to cargo owners.
The NSC can help break this cycle by ensuring that competing ports operate under fair economic and regulatory conditions.
The goal should be to make Nigerian ports compete for cargo through:
cost + efficiency + connectivity + reliability + service quality.
That is a healthier basis for cargo distribution than administrative cargo quotas.
4. Regulation of Tariffs, Rates and Charges
Cost remains one of the most important determinants of port choice.
The NSC’s role in providing guidelines for tariff setting and regulating economic activities is therefore directly connected to cargo distribution. Its statutory functions include providing guidelines on tariff setting, monitoring service delivery and working to minimise the high cost of doing business.
If the cost of using one port is significantly higher than comparable ports without a corresponding improvement in service quality, cargo owners will have little incentive to use that port.
Conversely, where charges are transparent and services are efficient, ports become more commercially attractive.
The Council must therefore continue to scrutinise:
• terminal handling charges;
• shipping line charges;
• storage and demurrage-related costs;
• documentation charges;
• cargo examination-related costs;
• inland transportation costs linked to port use; and
• other economic charges that influence port choice.
The issue is not simply whether a particular charge exists. The more important question is whether the charge is reasonable, transparent, properly disclosed and connected to a service actually provided.
This is a fundamental element of trade facilitation.
5. Addressing the Lagos Port Concentration
For years, the Lagos port complex has carried a disproportionate share of Nigeria’s maritime cargo.
This has created both commercial advantages and systemic vulnerabilities.
The concentration of cargo in Lagos has contributed to congestion and placed enormous pressure on the Lagos-Ogun industrial corridor and the road network serving the ports. The opening of Lekki Deep Sea Port provides additional capacity and an opportunity to diversify cargo flows, although infrastructure must be supported by efficient hinterland connectivity and streamlined port processes.
The challenge, therefore, is no longer simply to build more ports.
Nigeria must make its existing and emerging ports commercially viable.
A multi-port strategy requires deliberate attention to the competitive position of Eastern and Western ports, including the ports in Rivers, Calabar and Delta and other emerging ports with the potential to serve regional cargo markets.
The NSC can contribute by identifying and addressing economic and regulatory barriers that make some ports less attractive to cargo owners.
6. Eastern Ports and the Question of Regional Development
The development of Eastern ports is particularly important from the perspective of balanced national development.
Ports are not merely places where ships berth. They are economic ecosystems capable of generating employment, logistics businesses, warehousing, manufacturing, transportation and investment.
When cargo is concentrated in one geographic region, the economic multiplier effects of port activity are similarly concentrated.
Greater utilisation of Eastern ports can therefore support economic development in the South-East, South-South and neighbouring regions, while reducing unnecessary movement of cargo through Lagos.
But this requires more than exhortations to shipping lines to use Eastern ports.
There must be commercially credible reasons to do so.
These include:
• navigational accessibility;
• adequate channel depth;
• modern cargo-handling equipment;
• reliable customs and regulatory processes;
• efficient terminal operations;
• good road and rail connections;
• security;
• competitive charges;
• availability of shipping services; and
• efficient connections to inland markets.
The NSC, as economic regulator and trade facilitator, has an important role in bringing stakeholders together to identify these barriers and promote solutions.
7. Inland Dry Ports as a Tool for Cargo Distribution/Decongestion
Equitable cargo distribution should not stop at seaports.
Nigeria needs to think of cargo distribution as a port-to-hinterland logistics system.
The NSC has been involved in facilitating Inland Dry Ports, which can extend the effective reach of seaports into the hinterland. The Council’s official framework recognises inland dry ports as part of the wider logistics architecture.
Dry ports can reduce pressure on coastal terminals by bringing port services closer to cargo owners in inland markets.
However, dry ports will only achieve their full potential if they are properly integrated with:
• seaports;
• railways;
• highways;
• inland waterways;
• customs systems; and
• digital cargo documentation.
The strategic question should therefore be:
How can Nigeria create a seamless cargo corridor from the ship to the final destination?
The answer requires collaboration among the NSC, Nigerian Ports Authority, Nigeria Customs Service, terminal operators, shipping lines, state governments, railway authorities, road agencies, freight forwarders and private investors.
8. Digitalisation as a Cargo Distribution Strategy
Digitalisation is another major area in which the NSC can influence cargo distribution.
The Council has identified the digitalisation and automation of port processes as a priority, including cargo release and manifest submission. Its stated objective is to reduce cost and timelines, minimise unnecessary human contact with cargo and improve service delivery.
This matters for cargo distribution, because a port’s attractiveness increasingly depends on the speed and predictability of its processes.
If a cargo owner can complete documentation, receive approvals, track cargo and process release electronically, the physical location of the port becomes less of a barrier.
A genuinely digital Nigerian port system should ultimately allow stakeholders to compare ports based on measurable indicators such as:
• vessel waiting time;
• berth productivity;
• cargo dwell time;
• customs clearance time;
• terminal handling time;
• truck turnaround time;
• rail evacuation capacity;
• total logistics cost; and
• cargo delivery reliability.
Such data would make port competition more objective and allow cargo owners to make informed decisions.
9. The NSC as an Arbiter Among Stakeholders
Port operations involve multiple interests.
Shipping lines want commercial efficiency. Terminal operators seek investment returns. Freight forwarders require predictable processes. Importers want lower costs. Government agencies must enforce regulations. Port communities seek employment and development.
Conflicts are therefore inevitable.
The NSC’s statutory functions include mediation among stakeholders and the establishment of accessible dispute resolution mechanisms.
This is an important trade facilitation function.
A regulatory system that can resolve disputes quickly reduces uncertainty and improves investor confidence.
For cargo distribution, the significance is straightforward: where commercial disputes, arbitrary charges or discriminatory practices are allowed to persist, cargo owners lose confidence in the affected port.
Effective dispute resolution therefore becomes part of port competitiveness.
10. The Importance of Port Economic Regulation
The question of regulatory authority is central to the future of Nigeria’s port system.
The NSC has consistently emphasized the need for credible and enforceable laws to support port economic regulation, competition, investment and predictable service delivery. In 2025, the Council argued that stronger legal backing was necessary to strengthen transparency, competition and dispute resolution in the maritime sector.
This is important because regulation must be more than an administrative function.
A regulator needs:
1. clear legal authority;
2. institutional independence and capacity;
3. reliable market information;
4. transparent regulatory procedures;
5. effective enforcement mechanisms;
6. stakeholder confidence; and
7. the ability to sanction non-compliance.
Without these elements, port economic regulation risks becoming advisory rather than transformative.
11. What Should the NSC Do Differently?
If equitable cargo distribution is to become a practical reality, the Council should consider moving from a predominantly reactive approach to a more data-driven and proactive port competition framework.
First: Establish a National Port Competitiveness Index
The NSC should develop and regularly publish a port performance scorecard covering all major Nigerian ports.
The scorecard should measure:
• cargo throughput;
• vessel turnaround;
• berth productivity;
• cargo dwell time;
• truck turnaround;
• port charges;
• customs processing time;
• cargo evacuation capacity;
• rail connectivity;
• inland waterway connectivity; and
• customer satisfaction.
Transparency would allow shippers to see where each port performs well or poorly.
Second: Develop a National Cargo Distribution Strategy
Nigeria needs a coordinated national strategy for cargo distribution based on port specialisation and comparative advantage.
Rather than asking every port to handle every category of cargo, government and regulators should identify the commodities, vessel types, geographical markets and logistics corridors best suited to individual ports.
Third: Strengthen Competition Among Shipping Services
The NSC should continue to engage shipping lines to ensure that commercial practices do not unnecessarily restrict port choice.
Where a port has adequate infrastructure but lacks regular shipping services, the regulator should investigate the economic and operational reasons.
Fourth: Integrate Ports with Rail and Inland Waterways
Cargo cannot be distributed equitably if the inland evacuation system remains concentrated around roads.
The development of rail linked and barge linked cargo corridors should therefore be treated as part of port development rather than as separate infrastructure projects.
Fifth: Make Port Data Public
Nigeria should have a transparent digital dashboard showing port performance.
When information is available, competition becomes measurable.
A shipper should be able to ask:
Which Nigerian port can move my cargo at the lowest total cost and within the shortest predictable time?
The regulatory system should make that question easy to answer.
12. The Role of Stakeholders
The NSC cannot achieve equitable cargo distribution alone.
Nigerian Ports Authority
The Nigerian Ports Authority remains critical to the provision and management of port infrastructure and marine services. The economic regulatory role of the NSC must therefore ensure NPA’s meet up with its operational responsibilities.
Nigerian Customs Service
Customs procedures directly influence cargo dwell time and port choice. Faster, risk-based and predictable cargo clearance will strengthen competition among ports.
Shipping Lines
Shipping companies must be encouraged to make port-call decisions based on genuine commercial and operational considerations while complying with Nigerian regulations.
Terminal Operators
Terminal operators must provide competitive and efficient services and invest in equipment, technology and human capacity.
State Governments
Host states have an important role in providing supporting infrastructure, security and access roads while avoiding local policies that unnecessarily increase the cost of moving cargo.
Freight Forwarders and Shippers
Importers, exporters and freight forwarders must also become more sophisticated users of port services. They should compare ports based on total logistics cost rather than simply traditional port preferences.
Maritime Media
And this is where the League of Maritime Editors has an especially important role.
The maritime media should move beyond reporting port congestion and regulatory disputes to providing the public with comparative information about port performance.
Journalists and editors can ask:
• Which ports are becoming more efficient?
• Why are some ports attracting more cargo than others?
• What prevents cargo from moving to underutilised ports?
• Are port charges transparent?
• Are investments delivering promised capacity?
• Are rail and inland waterway projects actually improving cargo evacuation?
• What are the measurable results of port reforms?
A better informed maritime public will produce better accountability.
13. The Way Forward
Nigeria should not approach cargo distribution as a political contest among ports.
It should approach it as a national competitiveness challenge.
The ultimate objective should be to build a Nigerian port system in which Lagos, the Eastern ports, Lekki and other viable ports complement one another rather than compete under unequal conditions.
Such a system would produce several benefits:
• lower logistics costs;
• reduced congestion;
• shorter cargo dwell times;
• better utilisation of port infrastructure;
• increased private-sector investment;
• stronger regional economies;
• improved export competitiveness;
• greater resilience in national supply chains; and
• enhanced Nigeria’s position as a maritime and logistics hub in West Africa.
The NSC’s role in this process is therefore much broader than the regulation of tariffs.
It is about creating the conditions under which Nigerian ports can compete fairly, efficiently and transparently.
Conclusion
The Nigerian Shippers’ Council occupies a strategic position at the intersection of regulation, trade facilitation and national economic development.
Its mandate to protect shippers, promote competition, regulate economic activities, monitor service standards, facilitate dispute resolution and reduce the cost of doing business gives it significant influence over the structure and performance of Nigeria’s port system.
But equitable cargo distribution cannot be achieved through regulation alone.
It requires a combination of competitive ports, efficient terminals, transparent charges, reliable shipping services, modern customs processes, digital systems, effective rail and inland-waterway connections and a strong regulatory framework.
The objective should not be to force cargo away from one port and towards another.
Rather, Nigeria should create a port system in which no port is artificially favoured, no port is unnecessarily disadvantaged, and every viable port has the opportunity to compete for cargo on the basis of efficiency, cost, capacity and service quality.
This is the essence of trade facilitation.
And this is where the Nigerian Shippers’ Council can make one of its most consequential contributions to Nigeria’s maritime future: not only by regulating ports, but by helping to create a competitive national port economy in which cargo moves through the most efficient corridor to its final destination.
For the League of Maritime Editors, the challenge is equally clear.
The Nigerian maritime media must keep asking the difficult question:
Are Nigeria’s ports competing for cargo, or are Nigeria’s cargoes still competing for access to a few preferred ports?
The answer will tell us much about whether Nigeria’s port reforms are truly delivering the competitive, efficient and trade-friendly maritime economy that the country needs.
• Paper Presented at the Annual General Meeting/seminar of the League of Maritime Editors Held in Lagos, on Thursday, August 20, 2026. Paper delivered on behalf of the DG, NPERA, Dr. Pius Akutah MON, by the Ag. Director, Port Monitoring and Regulatory Services Department, Ms Adaora Nwosu
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