NPA Modernisation Strengthens Competitiveness As Stakeholders Link Port Tariff Reform To Faster Turnaround, Lower Trade Costs 

By Olumide Johnson

Stakeholders in Nigeria’s maritime industry are seeking a comprehensive review of port tariffs, faster vessel turnaround and stronger cargo evacuation systems as Nigeria seeks to position its ports as the leading maritime hub and trade gateway in West and Central Africa.

The call came at the 2026 Annual Maritime Lecture organised by the Maritime Reporters Association of Nigeria, against concerns over port costs, congestion and the competitiveness of Nigerian trade corridors.

At the centre of the emerging transformation is the Nigerian Ports Authority (NPA), whose modernisation programme is increasingly being positioned as a critical platform for lowering logistics costs, improving port productivity and strengthening Nigeria’s trade infrastructure.

DECISION HIGHLIGHT

The policy direction is moving beyond simply building ports to measuring whether the NPA and the wider maritime system can move ships, cargo and exports faster and at lower cost.

Special Adviser to President Bola Ahmed Tinubu on Policy Coordination and former Managing Director of the NPA, Hadiza Bala Usman, argued that port modernisation should ultimately deliver lower cargo-handling costs, faster vessel turnaround and greater export capacity.

She also called for a predictable, transparent and performance-based tariff regime and an annual Port Economic Performance Report covering vessel and truck turnaround, cargo productivity, customs clearance, logistics costs, digital transactions, export connectivity and customer satisfaction.

DECISION MEMO

There is a distinction which places the NPA in an unusually important position. The authority is not merely managing physical port assets; its operational performance sits at the intersection of trade costs, industrial competitiveness, consumer prices and investment flows.

The modernisation programme therefore deserves to be viewed as economic infrastructure rather than a conventional maritime project.

Dr. Adegboyega Oyetola, Minister of Marine and Blue Economy, represented by Seyi Iyawe, said that the federal government is modernising Apapa, Tin Can Island and other ports through critical infrastructure reconstruction, channel deepening, replacement of obsolete equipment and operational reforms designed to accommodate larger vessels, reduce turnaround time and lower cargo-handling costs.

This is precisely where the NPA becomes consequential. Better infrastructure has little economic value if ships wait too long, cargo remains trapped inside terminals or goods face costly delays after leaving the port.

Usman captured the broader economics succinctly: “Behind every statistic is a business, behind every delay is a cost, and behind every efficiency gain is an opportunity for national growth.”

She noted that Tin Can Island Port and Lagos Port Complex in Apapa were ranked among the world’s most improved container ports between 2020 and 2025 under the World Bank and S&P Global Market Intelligence’s Container Port Performance Index.

The proposed one-stop-shop approach involving the NPA, Nigerian Maritime Administration and Safety Agency (NIMASA) and Nigeria Customs Service (NCS) is therefore more than an administrative convenience. It represents an attempt to convert multiple institutional processes into one trade experience.

The establishment of the Nigerian Ports Economic Regulatory Agency (NPERA) adds another layer by creating a dedicated framework for economic regulation, tariff monitoring, service standards and competition.

DATA BOX

• Nigerian seaports handle more than four-fifths of Nigeria’s physical imports and exports.
• Tin Can Island Port and Lagos Port Complex in Apapa were ranked among the world’s most improved container ports between 2020 and 2025.
• Nigeria recorded four consecutive years of zero piracy in its territorial waters, according to the Federal Government’s position presented at the lecture.
• Proposed Port Economic Performance Report metrics include vessel and truck turnaround, cargo productivity, customs clearance, logistics costs, digital transactions, export connectivity and customer satisfaction.

WHO WINS / WHO LOSES

Potential beneficiaries: Manufacturers, importers, exporters, logistics operators, consumers, port users and investors stand to benefit if turnaround times and total cargo costs fall.

Those exposed to inefficiency: Businesses dependent on predictable cargo movement remain vulnerable where tariffs, delays, congestion and inland evacuation costs remain high.

POLICY SIGNALS

Port reform is increasingly being judged by measurable economic outcomes.

The NPA’s modernisation programme, tariff transparency, stronger economic regulation, digitalisation and improved hinterland connectivity will need to operate together. Port competitiveness cannot be secured by infrastructure expenditure alone.

INVESTOR SIGNAL

For investors, the critical issue is not simply how much Nigeria is spending on port infrastructure. It is whether that investment produces measurable reductions in dwell time, vessel turnaround, logistics costs and barriers to export.

RISK RADAR

If terminal improvements are not matched by efficient cargo evacuation, tariff rationalisation, digital processes, customs coordination and hinterland connectivity, port modernisation could deliver isolated efficiency rather than economy-wide competitiveness.

Olumide Johnson is a journalist, reporting on energy, business, markets, policy and developments shaping Nigeria’s economy.