Nigeria Moves Ahead with £746m Port Modernisation to Boost Efficiency and Attract Investment

ZAINAB JUNAID

Nigeria has reaffirmed its commitment to overhauling its port infrastructure with a major modernization project valued at approximately £746 million (about $700 million), aimed at improving efficiency, reducing congestion, and strengthening investor confidence.

Addressing journalists in Lagos on Tuesday, the Managing Director of Nigerian Port Authority (NPA), Dr Abubakar Dantsoho emphasised that the success of the modernisation effort depends not only on infrastructure upgrades but also on establishing a strong legal and regulatory framework.

According to the MD, investors are unlikely to commit funds in an environment where agreements are poorly structured or legal protections are weak, hence the need for the upgrade.

“The issue is not just about how long it takes, but what comes out at the end,” he said. “If investors are not confident that their investments are secure, they will simply stay away.”

The modernisation initiative is expected to address long-standing challenges in Nigeria’s port system, particularly cargo clearance delays and congestion, issues that have affected trade efficiency and the country’s reputation within the sub-region.

A key component of this reform, he said is automation.

Dr. Dantsoho highlighted plans to deploy digital systems that will streamline operations such as manifest processing, payment integration, and cargo release.

“By reducing human interference, the government hopes to eliminate bottlenecks and improve transparency.

“In more advanced port systems, you don’t see the level of human congestion we have here. Processes are automated and managed digitally, and that is the direction we are heading,” he noted.

Although the project will eventually cover ports across the country, implementation will begin in Lagos, Nigeria’s busiest maritime hub, raking into consideration Apapa and TinCan Ports.

The MD explained that investment priorities are influenced by traffic volume and potential returns, though eastern ports will also benefit from upgrades.

The government also pointed to ongoing efforts to diversify cargo evacuation methods beyond road transport.

He hinted that Barge operations have already been introduced to utilise inland waterways, while rail connections, such as those linked to port terminals, are expected to play a greater role in easing pressure on roads.

However, officials stressed that the choice of cargo destination and transport mode ultimately lies with importers, who decide based on cost and convenience.

Industry observers say the modernization programme could significantly enhance Nigeria’s competitiveness compared to regional peers like Ghana and South Africa, where port and judicial efficiencies are often seen as stronger.

With automation, infrastructure upgrades, and policy reforms at its core, the port modernization drive is being positioned as a critical step toward improving trade facilitation and restoring investor confidence in Africa’s largest economy.