NPA’s Port Renewal Programme Rebuilds Infrastructure, Trade Capacity, Efficiency

By Olumide Johnson

The Nigerian Ports Authority (NPA), led by its Managing Director, Dr Abubakar Dantsoho, is moving Nigeria’s port modernisation programme from financing and preparation into physical implementation, with reconstruction of six berths at Rivers Port already underway and contractors expected to mobilise for the Apapa and Tin Can Island upgrades by the end of Q3 2026. The federal government has begun counterpart funding for the £746 million United Kingdom-backed facility supporting the Lagos ports upgrade, within a broader $1 billion reconstruction programme covering five major seaports.

DECISION HIGHLIGHT

The emerging strategy combines physical rehabilitation, deeper channels, digitalisation and alternative cargo-evacuation routes, positioning port infrastructure as an enabler of trade competitiveness rather than simply a transport asset.

DECISION MEMO

The strongest case for the NPA’s current programme is that it addresses several constraints simultaneously. Reconstructing berths without improving navigation, cargo evacuation and port processes would only relocate bottlenecks. The Authority’s approach links quay rehabilitation to dredging, automation, inland connectivity and operational controls.

At Rivers Port, six berths have been reconstructed and strengthened, while navigation channels are being deepened to accommodate larger vessels. Dantsoho has also rejected the view that the Eastern Ports have been abandoned, arguing that their proximity to key markets gives them strategic value.

“It is not correct to say that management has abandoned the Eastern Ports. As we speak, some of the structures are being rehabilitated. We know the Eastern Ports have proximity to key markets, which is why the government is making consistent efforts to ensure the ports are rehabilitated and fully functional. This will allow vessels to come directly here and save the cost of transporting goods by road,” he said.

For Apapa and Tin Can, the programme is moving through the final pre-construction stage. Site investigations and borehole drilling have been completed, while contractor mobilisation is expected to follow. Dantsoho said: “NPA has secured key financing and is now releasing funds. The Federal Government has begun paying the counterpart funding required to access the £746 million UK-backed loan for the Apapa and Tin Can Island ports upgrade. This is part of the broader $1 billion reconstruction programme for five major seaports.”

The programme’s economic significance extends beyond the physical ports. NPA’s plan to deepen strategic channels to between 14.5 metres and 16.5 metres could enable larger container vessels to berth, while expanded barge operations and active freight rail connections to Kano and Kaduna dry ports offer alternatives to road-based evacuation.

Digitalisation provides another transmission channel. The NPA says its Port Community System is being integrated with the Federal Government’s National Single Window, with a target of reducing cargo clearance from double-digit days to under 48 hours.

The evidence of improving operational performance also provides context for the investment. The World Bank Container Port Performance Index cited by Dantsoho placed Tin Can Island Port 10th among the world’s most improved ports, with a 42-point improvement, while Apapa ranked 12th with a 35-point increase.

This suggests the Federal Government’s port strategy is not starting from zero. The policy challenge is to convert incremental operational gains into durable infrastructure capacity. Dantsoho said the NPA remains committed to “positioning Nigeria as the leading maritime hub in Africa”, with the programme extending to tugboats, pilot cutters, quay rehabilitation, vessel traffic systems and green-port initiatives.

The investment case ultimately rests on execution. If construction, digital reforms and cargo-evacuation improvements proceed together, the ports can lower logistics friction, support trade volumes and strengthen Nigeria’s position against competing West and Central African gateways.

DATA BOX

• Broad port reconstruction programme: $1bn.
• UK-backed financing for Apapa and Tin Can: £746m.
• Rivers Port: 6 berths reconstructed and strengthened.
• Target channel depth: 14.5-16.5 metres.
• Cargo moved by barge: over 30 percent of containerised cargo.
• Cargo-clearance target: under 48 hours.
• Tin Can Island: 10th globally among most improved ports, 42-point improvement.
• Apapa: 12th globally, 35-point improvement.
• Illegal trucks/checkpoints dismantled: over 1,500.
• Q1 2026 trade surplus cited by NPA: N7.54tn.

WHO WINS / WHO LOSES

Exporters, importers, shipping lines, terminal operators and manufacturers stand to benefit from greater capacity, faster clearance and more reliable cargo evacuation. The Federal Government also gains from stronger trade flows, port revenues and improved logistics competitiveness.

Businesses dependent on inefficient road evacuation, informal access arrangements and fragmented port processes face pressure as digital controls and alternative transport channels expand.

POLICY SIGNALS

The Federal Government is treating port infrastructure as part of the wider trade and economic-growth architecture. The combination of public financing, foreign-backed funding, digitalisation and private-sector participation indicates an effort to improve both physical capacity and institutional efficiency.

INVESTOR SIGNAL

The programme creates opportunities around port operations, logistics, inland connectivity, digital trade infrastructure and terminal investment. The NPA’s willingness to consider competitive bidding where concessionaires fail to meet revised benchmarks also strengthens the emphasis on performance-based private participation.

RISK RADAR

The principal risk is execution across multiple interconnected projects. Construction delays, funding disbursement, community relations, concession disputes and landside congestion could dilute the benefits of physical rehabilitation. The strongest outcome will depend on synchronising port construction with dredging, digitalisation, rail, barge evacuation and security reforms rather than treating each intervention separately.