Nigeria Loses $15 Billion Annually to Port Congestion and Maritime Challenges

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Nigeria is reportedly facing significant losses of approximately $15 billion annually due to congestion and various maritime-related issues at the nation’s seaports. These challenges, including gridlock, multiple taxation, delays, cargo diversion, and cumbersome clearance processes, are causing revenue losses for the Nigeria Customs Service (NCS) and negatively impacting the country’s Gross Domestic Product (GDP).

A maritime expert based in the United Kingdom, Amodu Adewale, highlighted the hydra-headed challenges faced by Nigerian ports, calling for a detailed review and immediate resolution strategies. He emphasized the impact of extortion, unreliable technology application, lack of transparency, and non-implementation of 24-hour port operations on the country’s maritime sector.

The neglect of port access roads by Federal Government agencies, leading to refuse dumpsites, has worsened the situation. The recently reconstructed roads by Dangote Group are now surrounded by garbage, which poses a threat to the roads’ stability and eventually contributes to the congestion and inefficiency of port operations.

The National President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, emphasized that the issue of bottlenecks at ports has persisted for years. He believes that reorganizing the sector professionally rather than politically is necessary to ease the bottlenecks and facilitate trade.

Opinion: The ongoing challenges faced by Nigeria’s maritime sector are causing significant economic losses, hindering trade facilitation and growth. Addressing these issues is crucial to improve efficiency and attract more investments in the sector. The Federal Government must take proactive measures to reorganize and streamline port operations professionally, ensuring compliance with trade procedures and implementing transparent and predictable 24-hour port operations. Additionally, the responsible authorities, particularly the Nigerian Ports Authority (NPA), should prioritize the clearance and maintenance of port access roads to mitigate congestion and enhance the overall efficiency of the country’s seaports.

sunnews

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