According to Olisa Agbakoba, a Senior Advocate of Nigeria, the West African country is losing around N20 billion ($13 million) per day due to inadequate infrastructure and system inefficiencies.
This loss is instead flowing into neighboring ports, like Cotonou, Tema, and Lomé, as reported by the Punch.
This is despite the fact that Nigeria has a coastline of approximately 853 kilometers, compared to Ghana’s 560 kilometers, Togo’s 56 kilometers, and Benin’s 121 kilometers.
Agbakoba further revealed that more than 25,000 foreign ships engage in illicit trade in Nigeria’s coastal seas, posing a threat to national security and causing significant financial losses.
The senior advocate revealed that 80% of containers in the West and Central Africa region are headed for Nigeria, but “less than 20% actually arrive because of the decayed infrastructure,” citing a recent assessment by the Dutch consulting firm Dynanmar.
“In the West and Central Africa region, 80 per cent of containers are destined for Nigeria, but less than 20 per cent actually arrive because of the decayed infrastructure, whether at Lagos, Port Harcourt, or other ports,” he stated.
“A recent report by Dynanmar, a Dutch consultancy firm, shows that Nigeria loses approximately N20bn daily at the ports due to poor infrastructure and inefficiencies, with most revenue flowing to neighbouring ports, particularly Cotonou, Tema, and Lomé,” he added.
He noted that lifting refined petroleum products from his Lekki-based oil refinery was more expensive for oil marketers than buying from offshore storage depots in neighboring countries, such as Togo.
According to the billionaire, multiple fees at the refinery’s loading point and discharge at domestic terminals, which are essentially absent when marketers import gasoline from offshore facilities such as the Lomé Floating Storage Terminal, were to blame.
“In terms of port charges, it is currently more expensive to load a domestic cargo of petroleum products from the Dangote Refinery, as customers pay both at the point of loading and the point of discharge,” Dangote said.
Nigeria’s untapped port potential
The North African country is currently building what is projected to be one of the continent’s largest seaports for more seamless trade with Europe, the Middle East, and other North African countries.
To this effect, he lauded the Lekki Deep Sea port, situated in the country’s commercial hub, Lagos, which, in his opinion, has made Nigeria competitive in the sector.
“Yet the Lekki Deep Sea Port demonstrates the transformative potential; it is already attracting over $20bn in investment and provides a replicable model for port modernization across Nigeria. Imagine what would come if all other ports were operating optimally,” he said.
The senior advocate also disclosed that vital ports are still either completely undeveloped or abandoned, and the Apapa City Port, also located in Lagos, needs a significant refurbishment.
He deplored the inactivity of the Onitsha River Port, one of Nigeria’s South-Eastern ports, despite its inherent potential to enhance inland trade flow and alleviate port congestion in Lagos.
