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Nigeria port reforms drive cargo traffic growth in Q1 2026


Driven by ongoing reforms, infrastructure upgrades, and rising exports, Nigeria’s maritime sector recorded stronger cargo traffic in Q1 2026, reinforcing ambitions for regional trade leadership, ARINZE NWAFOR writes

The maritime sector recorded strong growth in the first quarter of 2026 as the Nigerian Ports Authority recorded a 19.5 per cent increase in Gross Registered Tonnage to 46.75 million and cargo throughput of 32.38 million metric tonnes, reinforcing the country’s ambition to position its ports as a major trade hub under the African Continental Free Trade Area.

Industry data and analysts’ comments suggest that ongoing port reforms, infrastructure upgrades, and rising export activity drove gains in the country’s maritime sector.

President Bola Tinubu has received commendations locally and internationally for reforms introduced to reposition the Nigerian economy. Early indications suggest that some of the policies are beginning to impact the maritime sector, which posted robust performance during the first quarter of 2026 as the Nigerian Ports Authority recorded improvements in cargo throughput, export activities, and vessel tonnage across the nation’s seaports.

Although vessel calls declined marginally, Gross Registered Tonnage for ocean-going vessels increased significantly by 19.5 per cent to 46.75 million, pointing to a growing preference for larger and more efficient vessels. Higher cargo volumes and stronger container exports also underscored the increasing importance of Nigerian ports in trade facilitation and economic growth.

The strong performance achieved during the first quarter reflects broader reforms being implemented within the maritime industry under the administration of President Bola Tinubu. The reforms are aimed at repositioning Nigerian ports to compete more effectively within the African Continental Free Trade Area framework.

Central to the strategy is a coordinated effort to modernise port infrastructure, improve cargo handling operations, deepen digital transformation, strengthen maritime security, and establish Nigeria as the leading maritime logistics hub in West Africa.

Managing Director of the Nigerian Ports Authority, Abubakar Dantsoho, recently cautioned that Nigeria could continue to lose regional cargo opportunities if its ports fail to deliver the speed, reliability, and operational efficiency required in an increasingly integrated African market.

“The time has come for a paradigm shift in the structure of Nigeria’s economy towards the full utilisation of our marine resources. Our port system, if properly harnessed, can serve as a major driver of economic growth,” Dantsoho said while addressing stakeholders in Lagos.

For several decades, Nigerian ports handled a large share of the country’s international trade but struggled with congestion, ageing infrastructure, operational delays, and bureaucratic bottlenecks that weakened competitiveness and pushed cargo traffic to neighbouring countries.

Despite contributing more than 60 per cent of West Africa’s Gross Domestic Product, Nigeria currently accounts for only about 25 per cent of the region’s cargo traffic. Dantsoho described the disparity as evidence that the country has yet to fully maximise its maritime potential.

However, with AfCFTA expected to intensify competition for regional cargo dominance, infrastructure quality and operational efficiency are becoming increasingly important.

“Nigeria’s geographical advantage alone is no longer sufficient,” Dantsoho said. “Efficiency, speed, innovation, and reliability will define leadership in this new era.”

Necessary reforms

That urgency appears to be driving the ongoing reforms within the maritime sector. Shortly after the Tinubu administration assumed office, the establishment of the Federal Ministry of Marine and Blue Economy under Adegboyega Oyetola signalled a significant institutional restructuring intended to consolidate maritime governance and unlock what the government estimates to be a $3tn blue economy opportunity.

Since then, the administration has pursued wide-ranging policy reforms, infrastructure development programmes, financing initiatives, and digitalisation efforts targeted at transforming the country’s maritime architecture.

The improving operational figures recorded during the first quarter of 2026 suggest that some of those initiatives may already be producing measurable outcomes.

One of the clearest indicators of transformation within the sector is the sharp increase in Gross Registered Tonnage recorded during the quarter, according to data from the NPA.

Although Nigerian ports handled 1,092 ocean-going vessels in Q1 2026, slightly below the 1,102 vessels recorded during the corresponding period of 2025, vessel tonnage rose sharply from 39.11 million GRT to 46.75 million GRT.

The development indicates that Nigerian ports are increasingly attracting larger-capacity vessels capable of transporting higher cargo volumes more efficiently.

The trend aligns with global maritime developments where ports compete not only on the number of vessels they receive but also on their capacity to accommodate deeper-draft ships, improve turnaround times, and support large-scale cargo operations.

The Lekki Deep Sea Port is increasingly playing a strategic role in driving that transition. The report linked the rise in vessel tonnage partly to the operational impact of Lekki Port, which has significantly expanded Nigeria’s capacity to receive larger international vessels.

The development also reflects improving economies of scale, increasing confidence among shipping lines, and growing cargo demand. Across Africa, deep seaports are becoming increasingly important infrastructure in the competition for AfCFTA-related trade flows.

Countries capable of handling larger vessels efficiently are expected to capture a bigger share of intra-African trade as regional barriers continue to decline. Nigerian maritime authorities appear determined to position the country competitively within that evolving landscape.

Trade activities

Beyond vessel tonnage, cargo throughput figures further highlighted the growing scale of maritime trade activities. Total cargo throughput excluding crude oil terminals increased by 11.6 per cent to 32.38 million metric tonnes during Q1 2026, compared with 29.02 million metric tons recorded during the same period in 2025.

The increase reflected rising trade volumes, stronger import and export activity, improved port productivity, and sustained demand for maritime services. Import cargo traffic grew moderately by 3.3 per cent to 18.11 million metric tonnes, supported by continued demand for machinery, industrial inputs, consumer goods, and raw materials. However, the most notable growth was recorded in export cargo movement.

Outward cargo traffic surged by 23.7 per cent to 14.13 million metric tons, reflecting stronger export competitiveness and deeper integration into regional and international supply chains. For Nigeria, which is seeking to reduce dependence on crude oil earnings, the increase in exports passing through the nation’s ports carries major economic significance.

The report attributed the growth to rising industrial and agricultural production, improved trade facilitation, and stronger export logistics systems. These developments align with the Federal Government’s broader economic diversification strategy and AfCFTA objectives.

If sustained, stronger export performance could boost foreign exchange earnings, stimulate domestic production, and strengthen Nigeria’s standing within continental trade networks.

Container operations during the quarter also revealed significant shifts within Nigeria’s trade ecosystem. Although total container traffic remained relatively stable at 541,229 TEUs, outbound container movement expanded substantially. Outward laden container traffic increased from 61,332 TEUs in Q1 2025 to 102,803 TEUs in Q1 2026, representing a remarkable growth of 67.6 per cent.

Compared with the preceding quarter, outbound container traffic more than doubled, reflecting expansion in containerised exports and improved terminal efficiency.

Containerised exports are particularly significant because they are commonly associated with processed goods, manufactured products, and higher-value agricultural exports. Growth in that segment, therefore, points to the gradual strengthening of Nigeria’s non-oil export sector.

The report also highlighted a major decline in empty container traffic, which dropped by 44.7 per cent. From an operational standpoint, the decline is viewed positively because it indicates improved container utilisation and more balanced cargo flows. Inward laden container traffic also rose by 5.2 per cent during the quarter, reflecting sustained import demand across several sectors of the economy.

Vehicle traffic

Another major highlight of the quarter was the sharp increase in vehicle traffic across Nigerian ports. Vehicle handling rose by 67 per cent to 58,870 units during Q1 2026, compared with 35,262 units recorded during the corresponding period in 2025. Relative to Q4 2025, vehicle traffic increased even more sharply by 76.9 per cent.

The increase reflects growing commercial and automotive logistics activities within the economy and further underscores the expanding role of ports in supporting domestic commerce and supply chains.

The report also revealed rising transhipment activities, further reinforcing Nigeria’s emerging importance within regional maritime trade. Transhipment container traffic increased by 83.1 per cent during the quarter. Transhipment operations occur when cargo arriving at one port is transferred onto another vessel for onward shipment to different destinations.

As Nigerian ports continue improving operational efficiency and cargo-handling capacity, the country could increasingly position itself as a regional cargo redistribution hub within West Africa. That possibility remains central to the government’s broader maritime strategy under AfCFTA.

Many of the operational improvements are being supported by an ongoing infrastructure modernisation drive. The Federal Government recently secured legislative approval for a $1bn loan requested by President Tinubu for the rehabilitation of the Lagos Port Complex and Tin Can Island Port.

According to the President, the project is intended to address long-standing infrastructure deficiencies while improving operational efficiency, safety, and competitiveness. Beyond Lagos, procurement processes are already underway for upgrades at the Warri, Port Harcourt, Onne, and Calabar ports.

Oyetola has consistently maintained that the maritime reform programme is not focused solely on Lagos but forms part of a nationwide strategy aimed at improving connectivity and stimulating regional economic growth.

New deep seaports are also under development across coastal states, including Bayelsa, Cross River, Akwa Ibom, and Ondo.

An industry operator, Kingsley Obas, noted that “the government is also pursuing extensive digitalisation reforms designed to eliminate bottlenecks associated with manual port processes.”

Key initiatives include the deployment of the Port Community System and the National Single Window platform, both aimed at streamlining documentation processes, integrating stakeholders, improving transparency, and reducing cargo clearance timelines.

Industry operators believe the systems could significantly reduce the cost of doing business and improve Nigeria’s competitiveness within Africa’s logistics environment.

“Rail integration, inland dry ports, barging operations, and dedicated export corridors are being expanded to strengthen cargo evacuation and inland connectivity,” Obas stated.

Dantsoho has repeatedly emphasised that sustainable port efficiency cannot be achieved without effective hinterland logistics systems. He pointed out that another major factor supporting the sector’s growth is the improvement in maritime security.

Nigeria has now recorded more than four years without piracy incidents, a development largely attributed to the Deep Blue Programme and enhanced surveillance systems. The improved security environment has strengthened investor confidence and supported maritime infrastructure development nationwide.

Private sector participation is also expanding as the Nigerian Ports Authority increasingly adopts project financing models to address infrastructure funding gaps.

“We are open to private sector participation through project financing. This approach is already improving efficiency and providing access to funding for critical infrastructure,” Dantsoho said.

Looking ahead

The Q1 2026 performance reflects a maritime sector gradually transitioning towards higher-value operations, stronger export competitiveness, and increased regional relevance, according to analysts and operators.

“Although challenges such as infrastructure gaps, bureaucratic inefficiencies, and logistics constraints still persist, the ongoing reform momentum suggests a determined effort to reposition Nigeria within Africa’s rapidly evolving trade environment,” another analyst, Daniel Olumuyiwa, stated.

He added that “under AfCFTA, countries that dominate regional trade are likely to be those with the fastest, most efficient, and technologically advanced ports.”

For Nigeria, the competition is no longer solely about maintaining geographical advantage. Increasingly, it is about developing a maritime ecosystem capable of competing effectively on a continental scale. The early indicators from Q1 2026 suggest the country may finally be moving in that direction.

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