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Over $10 billion is being invested by state governments and private sector companies in the development of new deep and river seaports throughout Nigeria.
The investments, aimed at boosting Nigeria’s maritime infrastructure, include several high-profile projects.
Among them are the Benin River Port, promoted by the Edo State government, the $4.2 billion Ibom Deep Seaport and Free Trade Zone, and the $462 million Bonny Deep Seaport.
Other significant projects include the $1.5 billion Ondo Port and Industrial City, the $2.59 billion Badagry Deep Seaport, and the $974 million Snake Island Port in Lagos.
The proposed Escravos Seaport Industrial Complex in Delta State also forms part of this ambitious expansion.
However, these projects are unfolding against a backdrop of economic headwinds that have led to a reduction in port business.
Factors such as a weaker naira, foreign exchange instability, and volatile exchange rates for clearing goods have contributed to a significant drop in import volumes.
Data from Nigeria’s budget performance report shows a worrying trend. In 2023, a total of 1,566,162 twenty-foot equivalent units (TEUs) of containers were brought into Nigerian seaports, marking a 6.8 percent decline compared to the 1.68 million TEUs recorded in 2022.
Also, ship traffic into Nigerian ports dropped by 4.5 percent to 3,778 vessels from 3,957 vessels in the previous year.
The first half of 2024 also saw an 8.7 percent decline in ship arrivals compared to the same period in 2023.
Maritime experts express concerns about the sustainability of these new port projects. Tony Anakebe, a noted maritime expert, highlighted that existing ports such as those in Rivers, Warri, and Calabar are already underutilized due to low patronage by shippers.
He emphasized the need for the government to revive these ports and make them competitive before embarking on new projects.
Similarly, Bolaji Akinola, CEO of Ships and Ports Communication Company, argued that building new seaports might be an overkill.
He suggested that instead of investing billions in new ports, efforts should be directed towards addressing the shortcomings of existing facilities like the Calabar Port, which suffers from issues like shallow draft.
Despite these challenges, state governments and private investors remain committed to the development of new ports.
Governor Babajide Sanwo-Olu of Lagos State emphasized the strategic importance of these investments, noting that Lagos hosts many of the country’s factories and markets, making it a critical component of the business ecosystem.
Governor Hope Uzodinma of Imo State also expressed optimism, stating that the new port projects could drive industrialization and job creation in Nigeria.
He noted that the Southeastern region would fully support efforts to revamp the cotton and textile sector, further boosting the region’s economic prospects.
The investments in new ports are seen as a long-term strategy to enhance Nigeria’s maritime infrastructure and position the country as a key player in global trade.
Despite this, the success of these projects are hinged on several factors, including improvements in the country’s economic stability, enhanced security measures, and strategic policies to attract and retain business
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