How Nigerian ports lost hub status to low draught,  infrastructural decay 

Over the years, successive government have always expressed determination to reclaim Nigeria lost transhipment cargoes to other neighboring countries but to no avail because of poor port infrastructure.

Seaports with best Infrastructure turn to be a shipping hub port to support shipping and trade.

But, unfortunately, Nigeria transhipment hub status was lost to Togo, Benin Republic, Cameroun and Ghana who have ports with infrastructure such as deeper draught that can accommodate larger vessels.
While these countries can take a vessel with 16meters draught, none of Nigerian seaports draught can go beyond 13 meters. This, made it difficult for transhipment in our Port or accommodation of POST PANAMAX vessels with  a capacity of about 8000 TEU and 47.5 feet draft.
Unfortunately, the final destination of the content of the bigger vessels that call at neighbouring countries is Nigeria because of the large population and seize of Nigerian markets.

For instance, while Nigerian ports draught was between eight and 13 meters which cannot accommodate mega ships, the least draught in other neighbouring ports is 6meters.

The draught of the neighbouring ports of Togo is 15.5meters while Benin Republic has 15 meters, Ghana 19 meters while Cameroun has 16 meters draught level.

With this larger draught, most Nigeria bound goods by mega ships were transhipped from these countries with smaller vessels.

Aside  maintaining a deeper draught of 15 meters, more Nigerian-bound transhipment cargoes will inevitably be diverted to the port of Cotonou following the outsourcing of the management of the port of Cotonou to the Port of Antwerp International, Belgium.

The agreement between PAI, a consultancy and investment subsidiary of Antwerp Port Authority, and the authorities was reached in 2018.

With this agreement, more than 60 per cent Nigeria-bound transhipment cargoes are reportedly diverted to Cotonou Port largely due to low port draught  of Nigerian ports which has made Nigerian port unaccessible for bigger vessels

Explaining the deal, the Antwerp Port Authority’s main task was modernising the port  in organisational terms, renovate the obsolescent facilities and prepare for and guide the expansion of the port.

Cotonou port, built in 1965, was initially designed to handle two million tonnes of cargo per annum, but had increased to 12 million tonnes due to Nigeria-bound transhipment cargoes.

Importers have also argued that sanity at the Cotonou port and the Benin government constant offering of rebates to Nigerian importers boom their transhipment status andi patronage.

In July 2017, the Cotonou port reduced its charges by 27 per cent for transit cargoes coming to Nigeria. For instance, it was learnt that to clear a transit car discharged at the Cotonou port to Nigeria attracts only CFA290, 000 (N186,000) instead of CFA399,920 (N257,000) with effect from July 1, 2017.

Speaking, the National President, National Council of Managing Director of  Licensed Customs Agents (NCMDLCA), Lucky Amiwero, said the neighbouring ports have already positioned their ports as “Millennium Ports, Preferred, Transhipment or Load centre,” adding that most West African ports built their ports to accommodate Nigerian bound cargo knowing about the country’s poor infrastructure.

Amiwero identified the neighbouring ports which have either completed their deep sea projects or near completion as Cotonou, Benin Republic, Lome, Togo, Accra, Ghana and Cameroun.

He called on the federal government to wake up by designing the concept of a Deep sea/ Transhipment centre to accommodate large E-Class vessels/mega ships of 8000- 20000 TEUs, that are currently demanded regionally and globally.

According to him, this was the only solution to the diversion of goods to neighbouring ports.
He advised that in with international best practices, Nigeria must design the following: (a) “A National Guarantee system to cover the payment of import duty taxes at the time of transit; (b) Custom Seal that ensure the physical integrity of the goods while in transit, making sure that the goods start and exit the transit in its original state; (c) Implement electronic tracking system enabling Customs to track and locate transit vehicles and guide intervention force including Customs staff; (d) A document system to enable transit document issued at the start of Transit journey to be accepted by transport and Custom authority along transit

Amiwero also identified inefficient port system as the reason why the country lost the transshipment hub status to other West African countries.

Amiwero,  he said except there is a change in infrastructure rehabilitation, Nigeria will continue to lose cargoes to neighbouring countries which have deep seaports and better facilities saying it is sad that Nigerian ports cannot accommodate mega ships with 8000-20000 TEUs, arguing that this was against the trend in neighbouring ports.

According to him, this was the only solution to the diversion of goods to neighboring ports.

He also called on the federal government to address the unwholesome practices of manipulated delays by providers of shipping services and other government agencies which have led to high demurrage, rent and high transactional costs.

Describing such practices as inimical to the efficiency of the port system, Amiwero said such issues against Nigerian ports need to be addressed for the sake of national economy.

“There is the need to re-claim our cargo from neighboring West African countries that is now hub for Nigeria cargos, by working out mechanism for a better developed regional HUB to consolidate on our destination of Nigerian cargo that has been siphoned by regional ports”, he told the President.

These countries within the subregion are building their ports for Nigeria cargoes. For instance, Ghana has taken over our transit, Togo has taken over our transhipment, Chad, Niger and Cameroon have taken over our domestic cargo and there is free trade from those areas. Co’ldvoire too is becoming a transhipment port. So we are having transhipment within Togo, Cameroon, Ghana and Benin Republic. All these things were as a result of the management of the maritime sector on the port level.”

Also speaking, the Vice President, ANLCA, Kayode Farinto, said it is a shame that the nations second largest revenue earner, after oil was left to wallop in such a sorry state with dilapidated infrastructure.

Farinto said there are too many factors that are drawing the sector backward, ranging from bad access roads to the ports, to high shipping costs, shallow water draft at seaports.

“There are too many issues responsible for the setback. The government does not have either the political will or she is not serious about implementing those good policies. You should expect that before the end of this year we are going to have more than 40 per cent drop in cargo coming to Nigerian ports,” he said.

Noting that the neighbouring countries, such as Ghana, Cote D’ivoire, Ghana and Togo are rapidly developing their seaports, he said Nigeria is currently loosing grip of the shipping economy due to abandonment of the sector, which is the second revenue earner for the government after oil.