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Trade facilitation improves as NPA adopts FG’s growth agenda


The Managing Director of the Nigerian Ports Authority, Dr Abubakar Dantsoho, has demonstrated the desire to shake up old-fashioned narratives at the nation’s premier maritime agency, a development that is driving trade facilitation and the Federal Government’s strategy of growing exports, ANOZIE EGOLE writes

Since his appointment as the Managing Director of the Nigerian Ports Authority by President Bola Tinubu 10 months ago, Dr Abubakar Dantsoho has demonstrated professionalism and persistence to change the narratives at the nation’s premier maritime agency.

Stakeholders opine that Dantsoho’s transformation of the NPA speak to fundamental changes happening at the agency that may lead to an unwitting mix-up in the proper contextualisation and appreciation of their scope and significance.

A licensed customs agent, Mr Ikenna Johnpaul, recalled that on assumption of office, Dantsoho promised to turn the organisation around and ensure Nigerian ports are the most efficient in Africa.

“He is doing that and more. Dantsoho’s first order of business on stepping into the saddle was to develop fresh initiatives targeting cost and value maximisation by infusing greater efficiency in NPA’s diverse operations, blocking income leakages, and cutting down on administrative overheads. The quick impact of this course could be felt,” Johnpaul said.

According to him, bringing his massive experience to bare at the NPA, where he rose through the ranks, there has been an improvement in the debt recovery and collection mechanisms, “which triggered a remarkable decrease in the debt owed to the agency for services rendered to stakeholders, international oil companies, and other partners.”

He maintained that Dantsoho has demonstrated professionalism, discipline, and persistence to actualise his dreams for the agency.

Stakeholders speak

A maritime stakeholder named Mezie Kingsley, explained that Dantsoho’s performance since assuming office has earned him several recognitions, including awards from some media outlets.

“Dantsoho was named Man of the Year by The Reporters Nigeria Magazine, in recognition of his transformative leadership in the maritime sector. He has also been recognised by reputable news organisations like Vanguard and BusinessDay Newspapers. He was honoured for his outstanding contributions to port efficiency, trade facilitation, and Nigeria’s global maritime standing,” Kingsley explained.

He continued, “Under his leadership, the NPA sustained port efficiencies that helped drive Nigeria’s international trade volume to N5.81 tn ($3.7 bn) in the third quarter of 2024. A key highlight of his tenure has been the successful implementation of President Tinubu’s strategy for reducing petroleum imports, which significantly cut foreign exchange demand.”

Kingsley pointed out that Dantsoho also spearheaded Nigeria’s full membership of the International Port Community System Association, enhancing trade transparency through the National Single Window project.

“His leadership was instrumental in increasing transshipment cargo processed from Lekki Deep Seaport, catering for landlocked areas in Nigeria. Recognised as the first Nigerian to be elected President of the Port Management Association of West & Central Africa, Dantsoho’s influence extends beyond Nigeria, positioning the country as a key player in regional maritime affairs,” he said.

He reckoned that Dantsoho’s election as Chairman of PMAWCA reflects the collective confidence of member nations in his ability to advance the shared aspirations of West and Central Africa’s maritime economy.

According to Kingsley, the most staggering testament to Dantsoho’s quality leadership is the transformation of the NPA’s revenue profile.

“In a single fiscal year, the agency’s earnings surged from N424.2bn in 2023 to an astounding N893.6bn in 2024, representing a 111 per cent leap that has not only outpaced projections but also revitalised national conversations around the economic potential of Nigerian ports. Such an exponential increase is no accident but a product of a deliberate strategy anchored in digital transformation, strategic investments, and fiscal transparency,” he said.

However, following the repositioning of the port system that has improved efficiency, the NPA recently announced plans to ensure the operational collaboration necessary to grow exports.

Speaking recently when he hosted the Chief Executive Officer of the Nigerian Liquefied Natural Gas Limited, Dr Phillip Mshelbila at the NPA Headquarters, Dantsoho said, “Imbued by the mandate of the Minister of Marine and Blue Economy Adegboyega Oyetola for the NPA to support the increased export orientation of the Federal Government, we assure you of our unwavering support. Nigeria LNG has played a key role in Nigeria’s economic development and export growth since its inception. We will grow this partnership.”

Earlier speaking on behalf of Nigeria LNG, Mshelbila expressed appreciation for the NPA’s continued support and solicited increased synergy as NLNG Limited expands its production capacity by taking advantage of increased global demand.

Dantsoho had, on assumption of office, promised to reposition the agency for increased productivity and greater efficiency for improved revenue generation, stressing that the NPA under his watch would rise to the intense competition from neighbouring countries.

Determined to ensure that the Nigerian ports take advantage of the intra-African trade that is expected to increase with the coming into operation of the African Continental Free Trade Area, Dantsoho has taken steps to reposition the Nigerian ports to improve their competitive strategy to stay ahead of rival ports.

Many believe this move would place Nigeria on the global map of excellence and ensure the country takes full advantage of the AfCFTA.

Dantsoho said that he envisaged that intra-African trade would significantly increase with the collapse of trade barriers across Africa.

“It is therefore imperative that the Nigerian ports reposition to be competitive in order not to lose their gateway traffic to the ports. Our vision is to be the maritime logistics hub for sustainable port services in Africa,” he said.

John Agbave reasoned that for the nation to optimise the benefits accruable from AFCFTA, the ports must play a pivotal role as a nodal point in international logistics.

“Given the fact that port cost is a significant component of freight cost, which ultimately affects the prices of goods in the market, this speaks to the need for our ports to be competitive and efficient. This requires strategic collaboration of every player in the port system for this to be actualised,” Agbave said.

He explained that port competitiveness is driven mainly by institutions, infrastructure, and macroeconomics.

He explained, “Strong institutions provide the regulatory and governance framework necessary for stable and predictable business operations, while infrastructure is a cornerstone of port competitiveness, influencing both operational efficiency and long-term strategic viability.

“The quality of infrastructure affects transport costs, trade efficiency, and overall competitiveness. Investments in inland terminals, logistic zones, and rail networks can expand a port’s influence beyond its traditional hinterland and bring about efficiency that makes the port competitive.”

Similarly, Agbave noted that the macroeconomic environment of a country is intricately linked to its ports’ performance and competitiveness, saying factors such as inflation, exchange rates, and economic stability influence trade flows and investments.

Improvements

While admitting that modernisation will position Nigerian ports at the edge of competition and improve efficiency, Dantsoho believed that aside from the newly developed Lekki Deep Seaport, the remaining six ports in the country are grappling with decrepit infrastructure, ranging from silted channels to collapsed breakwaters and quays.

“It is consequent upon this that the NPA has embarked on a port modernisation project, aimed at revamping the dilapidated infrastructure. The Lagos Port Complex and Tincan Island Port Complex will serve as pilot projects,” Dantsoho said.

According to him, the Port Community System/National Single Window, which is a digital collaborative platform that enables seamless exchange of information amongst the many port stakeholders and provides a platform for one-stop shop payments for all activities within the port ecosystem, will reduce paperwork and administrative bureaucracy.

He further disclosed that NPA, in collaboration with the International Maritime Organisation, is working towards the actualisation of this project.

“The Port Community System is envisaged to culminate in the National Single Window for maximum efficiency and competitiveness,” he said.

The PUNCH reported last month that the Presidential Enabling Business Environment Council and the NPA launched the Ports and Customs Efficiency Committee, a move aimed at enhancing efficiency and ease of doing business at the nation’s sea ports.

Speaking at the inaugural meeting of the PCEC, the Director-General of PEBEC, Zahrah Mustapha, said improving efficiencies at the nation’s seaports would reduce cargo dwell time, vessel turnaround, and turnover for customers.

Mustapha said the committee was launched to change the narrative of missed opportunities in the maritime sector as well as unlock potential opportunities and enhance Nigeria’s economy.

“By improving efficiencies in our ports, we can drastically reduce the average cargo dwell time and turnover time for customers, eliminate duplication of documentation and manual processes, and ensure customer satisfaction. This is not just another one of our reforms, but also about resilience; it’s about unlocking potential opportunities and enhancing Nigeria’s economy. This is not just a committee made up of government forces for a difference; this also has a lot of private sector stakeholders,” she stated.

Earlier, Dantsoho said the authority is currently addressing four major pillars that are critical to repositioning the nation’s seaports and making them compete favourably with regional counterparts.

He said investment in infrastructure, equipment, technology, and human capacity would improve the competitiveness and operational efficiency of the nation’s seaports.

Dantsoho noted that infrastructure, particularly in Apapa and Tin Can Island ports, is aged and in dire need of rehabilitation.

Challenges

Despite Dantsoho aggressively pursuing the digitalisation of port operations and introducing a robust Port Community System, a twin initiative that is rapidly closing the leakages through which corruption once seeped and productivity waned, stakeholders see the need for the ports to be more technology-driven and investor-friendly.

In March, the Shipping Association of Nigeria explained that the high port charges were making Nigerian ports uncompetitive to customers and pushing cargoes to neighbouring countries.

The chairman of SAN, Mrs Boma Alabi, made this known during a press conference held at the Lagos Yacht Club in Victoria Island.

She added that the cost of doing business in Nigerian ports is working against the country, as smaller countries are now wresting cargoes from Nigeria.

Alabi, who is also the president of the Shipping, Shipping Agencies, Clearing, and Forwarding Employers Association, noted that the ports have become uncompetitive because of the several charges customers are made to pay as compared to neighbouring ports like Cotonou (Benin Republic) and Lome (Togo), which collect relatively low charges.

“Vessel berthing charges at Tema Port are $15,000 but $150,000 in Nigeria and about $200,000 presently, considering the 15 per cent increment in the Nigerian Ports Authority charges,” Alabi said.

While also stressing the need to ensure the full modernisation of the ports, especially Apapa and Tincan Island, Emma Anyabu stated that port operations can only be automated with modern and strong infrastructure.

“For instance, in container operations, modern ship-to-shore cranes can only be deployed on strong quay aprons, he said, stressing that “automation of our operations will be a major paradigm shift for our port efficiency. It is expected to reduce the turnaround time of container vessels to hours instead of days.”

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