By Oluyinka Onigbinde
The Federal Government has said discussions on the renewal of Nigeria’s port concession agreements are still ongoing, assuring stakeholders that the process will be guided by the overall interest of the nation’s maritime sector.
The clarification comes amid growing industry concerns over the expiration of several port concession agreements and uncertainty surrounding the government’s plans for terminal operators whose concessions have either expired or are nearing expiration.
Speaking with Shipping Position Daily, the Special Adviser on Media and Communications to the Minister of Marine and Blue Economy, Dr. Bolaji Akinola, disclosed that consultations are still in progress, adding that the Minister of Marine and Blue Economy remains committed to ensuring that the process is transparent, fair and beneficial to the country.
According to Akinola, discussions with relevant stakeholders are continuing, stressing that no final decision has been taken on the renewal process.
He noted that the minister is committed to ensuring that whatever decision is eventually reached will strengthen port operations, improve efficiency and protect Nigeria’s economic interests.
Shipping Position Daily had earlier reported that uncertainty over the renewal of the port concession agreements had generated anxiety within the maritime industry, with stakeholders expressing divergent views on whether existing operators should automatically have their agreements renewed or be subjected to fresh competitive bidding.
The issue has remained one of the most debated subjects in the maritime sector, especially as many industry players insist that the government must carefully evaluate the performance of terminal operators over the last two decades before arriving at any decision.
Reacting to the development, maritime stakeholder and former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, urged the Federal Government to approach the concession renewal process with caution.
While clarifying that he was not speaking on behalf of any terminal operator, Farinto maintained that the review should be based on objective performance indicators rather than sentiments or political considerations.
He called on the government to acknowledge the contributions of indigenous terminal operators, particularly Port & Cargo Handling Services Limited and ENL Consortium, noting that both companies have made substantial investments in cargo handling equipment and port infrastructure over the years.
According to him, indigenous operators deserve fair consideration because, unlike many foreign operators who repatriate their profits, Nigerian companies reinvest their earnings within the local economy, creating jobs and contributing to national economic development.
Farinto argued that the renewal of concession agreements should be determined strictly by measurable performance, operational efficiency, compliance with contractual obligations and value addition to the Nigerian economy.
He also dismissed suggestions that foreign terminal operators have generally outperformed indigenous firms, insisting that several local operators have consistently demonstrated capacity through continuous investments in modern equipment and infrastructure.
As an example, he identified Port & Cargo Handling Services Limited as one of the first indigenous terminal operators to introduce Rubber Tyred Gantry (RTG) cranes into Nigeria’s port system, describing the investment as a clear demonstration of local technical and financial capacity.
The maritime expert, however, criticised the operational practices of some foreign terminal operators, accusing them of handling cargo volumes far beyond the designed capacities of their terminals.
According to him, the practice has contributed significantly to persistent port congestion, truck gridlock and operational inefficiencies within the nation’s seaports.
He maintained that operators seeking to handle larger cargo volumes should be encouraged to expand into new port locations through properly planned port development initiatives instead of overstretching existing terminals.
The stakeholders expressed their believe that the outcome of the concession renewal process will shape the future of Nigeria’s port operations, investment climate and competitiveness, as stakeholders continue to await the Federal Government’s final decision on the long-awaited review of the concession agreements.
