By Okafor Joseph Afam
December 2, 2024

Persistent inefficiencies at Nigerian seaports, exacerbated by corruption and overlapping regulatory agencies, are aggravating the country’s food insecurity crisis, experts have said.

The World Trade Organization (WTO) Trade Policy Review highlights these inefficiencies, noting that they inflate food prices, discourage private sector investment in agriculture, and hinder trade. Longstanding import prohibitions on key agricultural products and high tariffs compound the challenges.

High Costs and Delays

Congestion, erratic customs regulations, and excessive delays characterize operations at Nigerian ports. The International Trade Administration ranks them among the most expensive globally due to high berthing costs, corruption, and insufficient infrastructure. Ships often wait weeks to dock, while cargo clearance processes that should take 48 hours can extend to over a week.

The Lagos Chamber of Commerce and Industry (LCCI) estimates these inefficiencies cost the business community over N2.5 trillion annually, affecting tax revenues, job creation, and overall economic growth.

Impact on Trade and Food Prices

Nigeria recorded $2.7 billion in non-oil exports in the first half of 2024, a modest 6.26 percent increase compared to the same period in 2023. However, experts warn that port bottlenecks threaten the country’s ability to maximize opportunities under trade agreements such as the African Continental Free Trade Area (AfCFTA).

Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), noted that regulatory agencies’ overlapping roles increase costs and delays, especially for perishable agricultural exports. “Many of our exports are time-sensitive. Delays caused by excessive inspections and documentation discourage participation in export businesses and reduce foreign exchange earnings,” Yusuf said.

Sabotaged Automation and Corruption

Automation is seen as a solution to streamline processes and eliminate corruption. However, experts like Prof. Odewumi Samuel, former Dean of Transportation and Logistics at LASU, allege that officials deliberately disable automated systems to retain control and extract illegal payments.

“These actions inflate costs, delay logistics, and ultimately harm consumers. Importers face inflated prices, which are passed on to end-users, contributing to food inflation,” Samuel stated.

Inflation remains a pressing issue, with rates rising to 33.88 percent in October 2024, further burdening Nigerians.

Efforts to Address Challenges

The Nigerian Ports Authority (NPA) recently approved the establishment of 10 Export Processing Terminals (EPTs), five of which are operational. These terminals inspect, certify, and containerize goods before port transportation, reducing the need for additional inspections.

Similarly, the Nigeria Export Promotion Council (NEPC) has authorized 13 export warehouses, ensuring streamlined access to export terminals and compliance with regulations.

Despite these efforts, stakeholders argue that enforcement and accountability are key to success. “When the government is ready to adopt best practices and hold agencies accountable for sabotage, Nigeria will undoubtedly be better for it,” Samuel emphasized.

Call for Reforms

Experts agree that reforming port operations is critical to boosting Nigeria’s trade competitiveness and addressing food insecurity. Streamlining regulatory agencies, enforcing automation, and eliminating corruption are pivotal steps.

“Nigeria needs to streamline these processes. The waste of time, energy, and money is unbearable,” said Samuel Nzekwe, former president of the Association of National Accountants of Nigeria (ANAN).

As food insecurity persists, resolving inefficiencies in Nigeria’s trade and logistics sector will be instrumental in curbing inflation and ensuring affordable food for its citizens.