…warns of economic risks
By Seun Ibiyemi
The Shipping Correspondents Association of Nigeria (SCAN) has expressed concern over delays in the renewal of port concession agreements in Nigeria, warning that the development poses significant risks to the maritime sector and the broader economy.
In a statement issued on Sunday in Lagos, and signed by its President, Moses Ebosele, the association said the prolonged delay could undermine investor confidence and disrupt operational stability at the nation’s seaports.
Ebosele described the situation as a troubling development that threatens the gains achieved since Nigeria’s port reform programme, which began in 2004 and culminated in the concessioning of port terminals in 2006.
Under the reform, the Nigerian Ports Authority (NPA) adopted a landlord model, transferring the management of port terminals to private operators between 2005 and 2006. Many of the concession agreements, with tenures ranging from 10 to 25 years, expired between 2021 and 2022.
According to SCAN, the delay in renewing these agreements sends negative signals to both local and international investors who rely on policy consistency and contractual certainty.
The association noted that uncertainty surrounding the renewals has discouraged further investment in port infrastructure and technology upgrades, as operators are reluctant to commit resources without clarity on their contractual future.
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It added that the situation could lead to reduced efficiency, slower turnaround times, and poor service delivery across the ports, ultimately affecting revenue generation for the government.
“This is a sector that contributes significantly to national income, and any disruption has far-reaching fiscal implications,” Ebosele said.
SCAN also warned of potential job losses and industrial unrest, noting that thousands of Nigerians depend on port-related activities for their livelihoods. It stressed that prolonged uncertainty could trigger layoffs and disputes within the workforce.
On the wider economic impact, the association explained that inefficiencies at the ports could translate into higher costs of goods and services, as increased operational costs are passed on to consumers.
“Our ports are critical gateways for trade. Any slowdown or inefficiency increases the cost of doing business, which is ultimately borne by Nigerians,” Ebosele added.
The association urged the Federal Government and relevant authorities to expedite the renewal of the concession agreements to safeguard investments, sustain efficiency, and maintain stability in the maritime sector.
