By Oluyinka Onigbinde
The Managing Director of the Nigerian Ports Authority (NPA), Abubakar Dantsoho, has disclosed that the Federal Government is undertaking a comprehensive review of port concession agreements to address longstanding gaps and strengthen the legal and operational framework guiding terminal operations in Nigeria.
Dantsoho, who was represented by the General Manager, Corporate Communications, Ikechukwu Onyemekara, stated this last week while responding to concerns over delays in the renewal of port concession agreements, noting that the process is deliberate and aimed at ensuring a more sustainable and investor-friendly regime.
He explained that port concessions, being contractual agreements between the NPA and terminal operators, are subject to periodic review upon expiration, adding that the current exercise is focused on addressing issues that emerged during the lifespan of existing agreements.
According to him, “government is not in a hurry to renew concessions without resolving all grey areas. Over the years, both the Port Authority and concessionaires have raised concerns ranging from performance expectations to infrastructure support. These issues must be properly addressed before any renewal is concluded.”
The NPA boss emphasized that while some stakeholders have expressed worries about declining investor confidence due to the delay, the long-term objective is to establish a robust legal framework that guarantees returns on investment and operational efficiency.
He argued that rushing the renewal process without fixing structural and contractual deficiencies could create greater uncertainty for investors, noting that “no serious investor would commit funds in an environment where the legal framework is weak or unclear.”
Dantsoho further assured that despite the ongoing review, port operations across the country remain uninterrupted, as interim provisions have been activated to ensure continuity of services pending the conclusion of negotiations.
The NPA also hinted that the review could lead to new investment opportunities, as existing concessionaires retain the option to exit if dissatisfied, while new investors may be invited to participate under improved terms.
Speaking on the broader impact of the concession programme, Onyemekara noted that Nigeria’s port concession model, introduced in the mid-2000s, was widely regarded as a success story that attracted international attention. However, he admitted that, like any major reform, it experienced “teething problems” which the current review seeks to resolve.
He stressed that the outcome of the ongoing exercise would produce a more balanced agreement that aligns the interests of government, terminal operators, and port users, ultimately enhancing efficiency and competitiveness in the maritime sector.
“The end result is what matters most,” he said. “When the review is concluded, Nigeria will have a concession framework that is legally sound, operationally efficient, and attractive to both local and international investors.”
The NPA maintained that stakeholders must exercise patience as the process unfolds, assuring that the restructured concession regime will position Nigerian ports for improved performance and long-term growth.
