Market News

By Adaku Onyenucheya

The Minister of Marine and Blue Economy, Adeboyega Oyetola, has announced that the Federal Government (FG) has commenced a plan to establish a National Flag Carrier through a public-private partnership (PPP).

Speaking at a recent forum, Oyetola revealed that the ministry has begun engaging stakeholders on this initiative, which aims to generate employment, reposition the maritime sector and create new revenue streams for the government.

He also disclosed that arrangements for the disbursement of the Cabotage Vessel Financing Fund (CVFF) to support the development of the shipping sector were being finalised.

Furthermore, Oyetola highlighted the federal government’s commitment to enhancing multimodal connectivity by improving road, rail, and inland waterway links to and from ports, boosting trade, enhancing logistics, and reducing transportation costs.

He said as part of these efforts, the ministry, in collaboration with the Lagos State Government, has successfully cleared the long-standing Apapa–Tincan–Mile 2 traffic bottleneck for landside operations.

Oyetola said the ministry has also provided essential port equipment, including tugboats, mooring boats, pilot cutters, bollards and fenders to enhance efficiency across all port locations.

Oyetola noted that the ministry has optimised crane productivity and reduced transit times for vessels and trucks.

According to him, the vessel turnaround time has improved from an average of seven days to five days, while truck turnaround time has been reduced from 10 days to just a few hours.

He further disclosed that efforts are underway to modernise existing ports, with Apapa and Tin Can Island Ports serving as pilot projects.

The modernisation initiative, he explained, would address ageing infrastructure nearing the end of its economic lifespan and improve hinterland connectivity.

He said the ministry encourages private-sector participation in developing greenfield ports and other infrastructure projects.

Oyetola emphasised the vast, untapped potential of Nigeria’s marine and blue economy, encompassing a wide range of activities, including maritime shipping, fisheries, renewable energy and coastal tourism.

He noted that with an extensive coastline of 853 kilometres and a maritime area exceeding 46,000 square kilometres, Nigeria is strategically positioned to leverage these resources for sustainable economic growth.

“The marine and blue economy has the potential to significantly contribute to Nigeria’s gross domestic product (GDP), create thousands of jobs, and drive both regional and global trade,” he said.

Despite its immense potential, Oyetola acknowledged that the sector faces several challenges, including inefficiencies in port operations, bureaucratic bottlenecks and inadequate stakeholder coordination, all of which have hindered its growth.

He said addressing these challenges requires an efficient, integrated and secured logistics ecosystem.

Also speaking at the forum, the Managing Director of NPA, Dr Abubakar Dantsoho, lamented that infrastructure deficits and increasing competition from neighbouring countries who continue to develop their port’s infrastructure are preventing Nigeria from becoming Africa’s leading transshipment hub and a key transit port for landlocked nations.

He highlighted that while repositioning Nigerian ports for regional and continental competitiveness, the NPA has embarked on process reengineering to align its functions with modernisation objectives, ensuring seamless data availability and enhanced transparency.

“The upcoming port modernisation projects are designed to bridge this gap and ensure that Nigeria’s ports remain competitive with regional counterparts,” Dantsoho stated.

He further underscored the critical role of the Port Community System (PCS) in modernising port operations, emphasising that its implementation is a complex but necessary process that has been in the works since 2011.

“There is no doubt that implementing the Port Community System is a complex process that does not happen overnight. However, the NPA has been consistent in its efforts to fully operationalise the PCS,” he stressed.

To support this initiative, Dantsoho revealed that NPA had sought technical guidance from the International Maritime Organisation (IMO) for the deployment of the PCS.

He said following the fulfilment of all requirements, Nigeria was recently admitted as a member of the International Port Community System Association (IPCSA), joining leading ports in the region, including Tangier Med Port (Morocco), Ghana, Togo, Ivory Coast and the Benin Republic.

He emphasised that cargo operations in Nigeria’s ports must align with international standards, which cannot be achieved without the full implementation of the PCS.