By Joshua Yousouph
The Nigerian Shippers’ Council (NSC) has identified inadequate funding, security challenges and poor rail connectivity as major obstacles hindering the development of Vehicle Transit Areas (VTAs) and Inland Dry Ports (IDPs) across the country, even as the Kaduna Inland Dry Port has processed about 40,000 containers over the last six to seven years.
Executive Secretary and Chief Executive Officer of the Council, Dr. Pius Akutah, revealed this during a media briefing with maritime editors and reporters in Lagos on Saturday.
Speaking on the status of the projects, he disclosed that several concessionaires responsible for developing VTAs and Inland Dry Ports have been unable to secure the resources needed to complete the projects.
According to him, the Council’s role is to regulate, monitor and facilitate implementation, but progress has been slow because some concessionaires lack the financial capacity to execute the projects through the full development cycle.
He noted that the Council has continued to engage stakeholders and monitor developments at project sites nationwide to ensure that the infrastructure eventually comes on stream.
Providing an update on the proposed Inland Dry Port located in Borno state, the NSC boss explained that the project has remained stalled due to security concerns surrounding the designated site.
He recalled that following consultations with the Borno State Government in 2025, efforts were made to advance the project through discussions with the concessionaire and another private terminal developer already operating in the state.
However, the arrangement collapsed after both parties failed to agree on terms for collaboration. “The concessionaire brought terms that were not favourable to the private developer, and that stalled the entire process,” he said.
He added that the allocated land remains within an area affected by security challenges, making construction activities impossible for now.
Speaking further, Director of Inland Transport Services at the NSC, Mr. Paul Gwangwa, said the Council had carried out a corridor management analysis of all proposed VTAs in Nigeria to assess their viability and potential contribution to cargo movement.
According to him, the exercise showed that many of the proposed facilities have strong economic potential, but lengthy concession approval procedures have delayed implementation.
Gwangwa revealed that the Infrastructure Concession Regulatory Commission (ICRC) recently introduced a new Public-Private Partnership framework designed to simplify approval processes and accelerate infrastructure development.
He expressed optimism that the new model would help fast-track pending VTA and Inland Dry Port projects.
Highlighting the performance of existing inland logistics infrastructure, Gwangwa disclosed that the Kaduna Inland Dry Port has handled about 40,000 containers over the past six to seven years.
Despite this achievement, he said approximately 99 per cent of the containers processed through the facility are transported by road because of inadequate rail services. He noted that the lack of rail connectivity continues to drive up logistics costs, with the movement of a container to inland destinations currently costing between N1.5 million and N2 million.
According to him, a functional rail system would significantly reduce transportation costs and improve the competitiveness of Inland Dry Ports.
Gwangwa stressed that stronger government support, improved rail infrastructure and easier access to project financing would be critical to unlocking the full potential of VTAs and Inland Dry Ports as alternative cargo evacuation and trade facilitation platforms across Nigeria.
