Oyetola Explains Disproportionate Cargo Vessel Calls on Lagos/Eastern Corridors, Says Lagos Ports not developed at the expense of Eastern Ports

We are not developing Lagos at the expense of the East. We are strengthening Lagos while building the capacity of the Eastern corridor to assume a greater and more strategic share of national maritime traffic – Oyetola.

Maritime Industry Stakeholders with Members of League of Maritime Editors during the later’s AGM/Conference held at BWC Htel inVictoria Island, Lagos

The Honorable Minister of Marine and Blue Economy, Chief Adegboyega Oyetola CON has said that the federal government is taking all precautionary steps to ensure an even development of the entire Nigerian Seaports, noting that the Lagos seaport does not attract more development at the expense of the Eastern Seaports.

This disclosure was contained in the Minister’s Keynote address as the Special Guest of Honour at the League of Maritime Editor’s Annual General Meeting/Conference held yesterday at BWC Hotel in Ikeja with the theme: Lagos/Eastern Ports: How to Reverse Existing Imbalance in Disproportionate Cargo Vessel Calls. The speech was delivered by Mrs Anastasia, the Director of Press of the ministry, who stood in as the Minister’s representative.

Oyetola who commended the League of Maritime Editors for their role in pioneering contribution to maritime journalism and for its sustained efforts to promote informed public discussion on developments in Nigeria’s maritime and Blue Economy sectors,  through advocacy, constructive criticism and professional engagement on issues affecting the maritime industry, as well as providing an important platform for accountability, policy discussion and better understanding of the issues affecting our maritime industry, further noted that the conference theme this year is particularly timely, and speaks directly to one of the longstanding challenges facing the maritime sector

while the Minister agreed that the existing imbalance in disproportionate cargo vessel calls between Lagos and the eastern ports poses heavy concentration of vessel calls and cargo traffic at the Lagos ports, while the Eastern ports remain relatively underutilized. He noted that, this imbalance affects much more than the ports themselves and it comes with the implications for national logistics costs, regional economic development, efficient use of infrastructure, investment and, ultimately, the competitiveness of Nigeria’s maritime sector.

From R-L; The Minister of Marine and Blue Economy Representative, Mrs Anesthhesia, Director of Press, Captain Iheanacho Ebubeogu, Frmr GM, NPA and Chairman of the Ocassion, Mr Lucky Amiwero

“For decades, the Lagos ports, particularly Apapa and Tin Can Island Ports, have handled the overwhelming proportion of Nigeria’s seaborne cargo traffic. This is understandable, given their historical importance and the concentration of commercial activities around Lagos. However, the pressure this has placed on the ports and their connecting infrastructure has become increasingly difficult to ignore. We are all familiar with the consequences: congestion, longer cargo dwell and vessel turnaround times, increased demurrage and logistics costs, pressure on our road infrastructure, environmental challenges and inefficiencies throughout the supply chain”.

At the same time, he pointedly said that the Eastern ports, including Onne, Port Harcourt, Warri and Calabar, have considerable strategic and economic potential.

The proximity Eastern ports to major industrial, agricultural, energy and commercial activities in the South-East and South-South as well as the North Central gives them a natural advantage in serving significant portions of Nigeria’s hinterland. They can also support regional industrial clusters, facilitate exports, promote agro-allied value chains and stimulate economic activity across the Eastern and Niger Delta regions. However, this potential has not yet been fully realised.

Challenges relating to draft limitations, the condition of infrastructure, navigational constraints, security concerns, hinterland connectivity, equipment, operational costs and the predictability of services have, over the years, affected the ability of the Eastern ports to attract regular and competitive vessel calls.The result is an imbalance that is neither good for the national economy nor sustainable in the long term. Reversing this imbalance is therefore not a regional demand; it is a national economic imperative.        

Under the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu, GCFR, the Federal Government has adopted a deliberate and strategic approach to transforming Nigeria’s maritime infrastructure and positioning the sector as a stronger driver of economic growth. The Ministry of Marine and Blue Economy along with its Agencies is committed to developing a balanced, efficient and interconnected national port system in which Lagos and the Eastern ports complement one another rather than compete for attention and investment.

Let me state this clearly: the modernisation and rehabilitation of the Eastern ports are integral parts of the Federal Government’s port development strategy. Our objective is to address the infrastructure and operational constraints that have historically limited the competitiveness of these ports. This includes improving channel depths and navigability, rehabilitating critical port infrastructure, enhancing navigational safety, upgrading cargo-handling facilities, strengthening security and improving the overall operating environment for shipping lines, terminal operators and cargo owners.

The reconstruction of the breakwaters and channel-management interventions, including works along the Escravos Channel for instance, together with new investments by private terminal operators, are important elements of this broader effort. Government is also encouraging greater private-sector participation in port development because we recognise that the scale of investment required cannot, and should not, be borne by Government alone. Our objective in this regard is straightforward: to make every viable Nigerian port capable of competing for cargo on the basis of efficiency, reliability, cost and quality of service.

Members of the League in group photograph at the eve of the August 20 Conference, after the election that produced Mr Felix Kumuyi as the President

I am aware that some stakeholders have asked why major physical modernisation activities are currently receiving particular attention at the Western ports, especially Apapa and Tin Can Island. This is a fair question, and it deserves a clear answer. The approach is not based on preferential treatment for Lagos. It is based on operational urgency, economic necessity, project readiness and responsible sequencing.i. The Scale of Existing PressureLagos remains Nigeria’s principal maritime gateway and currently handles the largest concentration of import and export cargo.Consequently, inefficiencies at the Lagos ports have a disproportionate impact on the national economy. Congestion, delays and infrastructure constraints at these ports translate directly into increased logistics costs for businesses and consumers across the country. Addressing the most heavily utilised and most severely pressured infrastructure therefore offers the quickest opportunity to reduce systemic inefficiencies and deliver immediate economic benefits to the nation. ii. The Need to Protect the Continuity of National TradePort modernisation cannot be undertaken without taking into account the need to keep trade moving.

Attempting to carry out major reconstruction simultaneously across the principal Western and Eastern gateways, without adequate alternative capacity, could create significant disruption to the movement of cargo and expose the national supply chain to unnecessary risks. A carefully sequenced programme allows us to improve capacity while ensuring that Nigeria’s international trade continues to flow. At the same time, strengthening the Eastern ports will provide the additional capacity required to progressively diversify cargo flows. iii. Financing and Project Readiness

The Lagos port modernisation programme attained financial and contractual readiness earlier, allowing implementation to commence ahead of some of the Eastern port interventions. This sequencing should not be interpreted as an indication that the Eastern ports are being neglected. Rather, it reflects the practical realities of project preparation, financing, procurement and implementation. The Eastern ports programme is being advanced as part of the same broader national strategy, with the objective of ensuring that the interventions are properly designed, financed and implemented for sustainable results. iv. Creating a Truly Multi-Port System: The long-term objective of the Government is not simply to improve the Lagos ports. Our objective is to create a multi-port system in which cargo owners and shipping lines have viable alternatives and can choose gateways based on efficiency, cost, reliability and proximity to their markets. A modernised Lagos port will reduce pressure on the system. Modernised Eastern ports will provide additional capacity and alternative gateways. The two strategies are therefore complementary.

We are not developing Lagos at the expense of the East. We are strengthening Lagos while building the capacity of the Eastern corridor to assume a greater and more strategic share of national maritime traffic.

The New League Executive Council

Distinguished ladies and gentlemen, we must also recognise that redistributing cargo and vessel calls will not happen simply because infrastructure is improved. Shipping lines make commercial decisions. They consider draft, berth availability, cargo volumes, turnaround time, security, reliability, tariffs, hinterland connectivity and, importantly, the overall predictability of port operations. For this reason, the Ministry is pursuing a broader package of complementary reforms.

First, maritime security and navigational safety – We will continue to support measures that enhance security along the Eastern maritime corridor and build confidence among ship-owners, operators and cargo interests. Second, operational and commercial incentives – We must create conditions that make it commercially attractive for shipping lines and cargo owners to use ports outside Lagos. This will require continuous engagement with terminal operators, shipping lines, freight forwarders, cargo owners and other stakeholders to identify and remove operational barriers.

Third, digitalization – The digital transformation of port processes remains central to our reform agenda. The National Single Window, Port Community System and related digital initiatives are intended to reduce unnecessary physical interactions, improve information sharing among agencies and operators, enhance transparency and make cargo clearance more predictable. A cargo owner should be able to determine the most efficient gateway on the basis of transparent and reliable information, rather than simply following historical patterns. Fourth, stronger hinterland connectivity – A port is only as competitive as the logistics network that connects it to its market. Consequently, greater attention must be given to road, rail, inland waterway and barge connectivity. The development of efficient multimodal connections to the Eastern ports will be particularly important in unlocking their potential and extending their market reach beyond their immediate geographical locations. Fifth, stronger public-private partnership – Government will continue to create an enabling environment for private investment in port infrastructure, terminal operations, logistics and related services. The investments already taking place in and around ports such as Onne and Port Harcourt demonstrate that private capital is willing to participate where there is a credible commercial opportunity and a supportive regulatory environment. Our responsibility as Government is to provide the policy certainty, infrastructure, security and regulatory environment that will enable such investments to flourish.

The minister also emphasized on the important role of the maritime media in this transformation. The media is not merely a reporter of what happens in the sector. You are an important stakeholder in shaping public understanding, attracting investment and promoting accountability. As maritime editors and journalists, you have the capacity to interrogate policies, highlight bottlenecks, draw attention to areas requiring urgent intervention and, where progress is being made, communicate that progress to the public. I therefore encourage the League of Maritime Editors to continue providing a platform for objective and evidence-based discussion of the challenges confronting the sector. He noted that Government must be prepared to listen to constructive criticism, just as the media must be prepared to recognise and communicate progress where progress is being made. That partnership is essential if we are to build a maritime sector that Nigerians can be proud of.

Distinguished ladies and gentlemen, the imbalance between Lagos and the Eastern ports is the product of decades of infrastructure, investment, operational and historical factors. It cannot be corrected overnight. But it can be corrected – and it must be corrected. Our approach is therefore one of deliberate policy, strategic sequencing, infrastructure investment, private-sector participation, digital transformation, improved security and stronger multimodal connectivity. In this regard, the modernisation of the Eastern ports is not being conceived as an isolated regional intervention. It is part of a broader national strategy to develop a resilient, competitive and interconnected port system.          

The commencement and prioritisation of interventions at the Western ports should therefore not be interpreted as a choice between Lagos and the East. It is about building a stronger Nigerian maritime system,  one in which Lagos continues to serve as a major maritime gateway, while Onne, Port Harcourt, Warri, Calabar and other viable ports are developed to handle a greater and more diversified share of national and regional trade.           

Cross Session of Participants

Our vision is a Nigeria where cargo moves through the gateway that provides the greatest efficiency, reliability and value, irrespective of its geographical location. That is the port system we are working to build. And when we achieve it, the benefits will go far beyond the ports themselves. We will reduce logistics costs, strengthen regional economies, attract investment, create jobs, improve trade competitiveness and reinforce Nigeria’s position as a leading maritime and logistics hub in West Africa”, the minister stated.

Other highlights of the event is the welcome address earlier taking by the outgoing President of the League, Mrs Remi Itie, who expressly stated that organising conference like this is geared solely towards nation-building, noting that discussions like these are not to bring any one institution down, but for us to identify our gaps, spotlight the opportunities and share the lessons learned

“Indeed, the time has come for us as citizens of our great country to focus on how to harness the potentials inherent in our marine and blue economy.  For instance, the Ethiope River stretching from Abraka to Eku down to Sapele and beyond in Delta State has vast tourism and agro-fishery potentials. Same with Bayelsa and so much more”. She however called on all to focus on strategies that can help us reverse the existing imbalance in cargo calls as the western ports are enjoying comparative advantages, and it is increasing the nation’s Gross Domestic Earnings. She noted cargoes can be spread to the eastern parts in the drive to boost the economy of the eastern ports and, by extension, the other coastal states. Remi said, it was key for the Marine and Blue Economy Ministry to critically look into. 

Captain Iheanacho Ebubeogu’s address as the Chairman of the occasion harped on the operational structures that affects the different ports domain. While he equally agree that the theme of the conference has been a contentious one- touching on all sides of our industry passion and leaning sentiments, as each and everyone concerned has overtime created an impression derived from either statistical data, perception or both, noting that for the league of Maritime Editors to choose this topic is an indication that they also have concern and interest in the maritime industry, and particularly this time, on the state of the economic growth of the Eastern ports.

Ebubeogu pertinently noted that ports owned and regulated by the Nigerian Ports Authority are referred to by the International Maritime Organization (IMO), as SOLAS Ports, as he categorized the geographical delineation of Nigerian ports in Western Ports and Eastern Ports ,noting that every port strives to maintain a high level of port reputation and competitiveness.

“The above ports in their various locations are expected to operate in a conducive environment that will ensure comfort to shipping with high level of operational efficiency, safety, fastness and at low logistic cost. These performances are expected to earn all the ports a steady Port Economic Growth

“The correlation between Port Stimulus, rehabilitation, and modernization are interconnected strategies designed to drive Port Economic Growth. Together, they transform struggling Maritime Facilities (like the eastern ports) into efficient trade hubs, directly lowering transportation costs, increasing cargo throughput, and boosting overall national GDP”, Ebubeogu said.

Meanwhile, the address of the newly transmuted Nigeria Shippers’ Council now Nigerian Port Regulatory Agency (NPERA) at the conference was greeted with huge enthusiasm, and rapt attention. Delivering the paper on: The Role of the Nigerian Port Economic Regulatory Agency (NPERA), the defunct Nigerian Shippers’ Council, In Ensuring Equitable Cargo Distribution Across Nigerian Ports, presented by Mrs Adora of Regulatory Services on behalf of the Director General, Dr Pius Akutah Ukeyima who was unavoidably absent, supported that the concentration of cargo calls at Lagos Ports has consequences beyond congestion at the ports, as it places pressure on road infrastructure, increases logistics costs, contributes to cargo dwell time, raises the cost of doing business and limits the economic benefits that could accrue to other port locations and their surrounding communities.

However, she said, the emergence of facilities such as Lekki Deep Sea Port, alongside the established ports in the Eastern and Western regions, creates an opportunity for Nigeria to develop a more balanced and competitive port system, noting that infrastructure alone cannot guarantee equitable cargo distribution. “What is required is a regulatory and commercial environment in which shipping lines, cargo owners, terminal operators, freight forwarders and other stakeholders can make rational choices based on efficiency, cost, connectivity and service quality. She also said, the Council is Nigeria’s Port Economic Regulator and a trade-facilitation agency and its responsibilities include promoting fair trade practices, protecting shippers’ interests, regulating economic activities at the ports, encouraging competition, monitoring service standards and helping to create a predictable environment for trade.

She explained that the central argument of this paper is that equitable cargo distribution should not mean administrative or politically imposed sharing of cargo among Nigerian ports, rather, it should mean creating a competitive, transparent and efficient port environment in which cargo can flow to the ports best positioned to handle it, while preventing discriminatory practices, artificial restrictions and market distortions that favour one port or corridor over another.