The Nigerian Ports Authority (NPA) has said that the delays in renewing port concession agreements are necessary to strengthen investor confidence and avoid future disputes.

The authority stressed the need for a thorough review of the agreement, saying that no investor will put money where the legal framework is weak.

The NPA Managing Director, Dr Abubakar Dantsoho, said 8n Lagos that the government was focused on correcting structural issues in existing agreements before approving renewals.

He acknowledged concerns raised by terminal operators over uncertainty but maintained that a flawed agreement would do more harm than a delayed one.

Dantsoho explained: “The end justifies the means. It is better to get it right than to rush into agreements that will be challenged later.”

He noted that both the NPA and concessionaires had raised concerns over unmet obligations, which must be resolved before any extension, stressing that investors prioritise clarity and legal certainty over speed.

The Managing Director noted that the outcome of the review could attract new investors, especially if existing operators choose not to continue.

On Inland container depots and bonded terminals, in a blunt assessment, Dantsoho said operators of inland container depots and bonded terminals must adapt to changing realities, warning that declining congestion may render their current business models obsolete.

He said: “They played their role during congestion. But business is dynamic. They must restrategise.”