The Federal Government has unveiled plans to invest $1 billion in rehabilitating the nation’s sea ports, aiming to address longstanding infrastructure deficiencies that have hindered efficient operations.
During a session with the House Committee on Privatisation on Thursday, Minister of Marine and Blue Economy, Gboyega Oyetola, emphasized the critical need for rehabilitation. He highlighted that the government’s failure to upgrade port infrastructure has prevented the maximum benefits from port concessions, with many facilities nearing the end of their useful lifespan.
Oyetola, represented by Permanent Secretary Oloruntola Michael, assured that rehabilitation efforts would be conducted without complete shutdowns of the ports, underscoring the government’s commitment to maintaining operational continuity.
He recalled the port reforms initiated in 2005/2006 to enhance efficiency, productivity, revenue generation, and technology transfer. These reforms led to the segmentation of six port complexes into 26 terminals and the transfer of cargo operations to private terminal operators through competitive bidding processes.
The minister explained that the “Landlord Model” was adopted, where port lands are owned by the Nigerian Ports Authority (NPA) but administered jointly with private operators.
Oyetola revealed that lease extensions were granted to compensate terminal operators due to budgetary constraints and NPA’s inability to fulfill lease obligations. However, challenges persisted, including shallow waters, government policy changes, property encumbrances, insecurity, and deteriorating access roads.
The minister noted that lease extensions expired in 2021 and were extended twice for six months. Terminal operators have approached NPA for Concession Agreement renewal, with the matter forwarded to the ministry for consideration.
