Despite the Nigerian government’s ambitious plans to transform the country’s maritime infrastructure through Public Private Partnership (PPP) initiatives, findings by Shipping Position Daily have revealed that several high profile maritime projects worth billions of Naira have been stalled for years in different parts of the country.
According to information gathered by our correspondent from the Infrastructure Concession Regulatory Commission (ICRC) website, these projects, sponsored by key agencies such as the Nigerian Ports Authority (NPA), the Nigerian Shippers’ Council (NSC), including the Federal Ministry of Transportation (now Marine and Blue Economy) have remained in limbo for years.
One of the most notable stalled projects on the ICRC website is the Badagry Deep Seaport, with the Nigerian Ports Authority as the sponsoring agency. The project, according to the ICRC has an indicative value of $2.611 billion. The project aimed to establish a world-class seaport to boost Nigeria’s maritime capacity and economic growth.
However, the project remains at the procurement phase, with the last update recorded in 2022. The delays in the commencement of this project has raised concerns about Nigeria’s ability to compete with other major ports in the West African region.
Recall that the Badagry Deep Seaport project was conceived to address the growing demand for deep seaport ports in Nigeria. As one of the largest economies in Africa, Nigeria’s current port infrastructure has been struggling to cope with the increasing volume of imports and exports. The Badagry project was expected to alleviate congestion at the existing ports in Lagos, including Apapa and Tin Can Island ports, which are notorious for their inefficiencies and delays.
With its strategic location and projected modern facilities, the Badagry Deep Seaport was envisioned as a game-changer that would enhance Nigeria’s maritime trade and attract more international shipping lines to the nation’s waters.
However, despite its potential, the project has been plagued by a series of setbacks. One major issue our correspondent gathered, has been the lengthy procurement process, which involves multiple stages of approvals and negotiations with potential investors.
Additionally, there have been challenges related to securing the necessary funding for the project. The high cost of the project, estimated at $2.611 billion, requires significant investment from both public and private sectors. The economic uncertainties and fluctuating foreign exchange rates have also contributed to the delays, making it difficult to finalize financial arrangements.
Another abandoned project is the Dagbolu Inland Container Depot (ICD) in Osun State. This project has seen little advancement since it was proposed. Sponsored by the Nigerian Shippers’ Council, the Dagbolu ICD is envisioned as a strategic facility to handle the import and export of containerized cargo, serving several Southwestern Nigerian states and beyond.
Despite its importance, the project which is valued at $3.961 million, remains at the procurement phase with the last update in November 2023. The project has the potential to transform Nigeria into a trans-shipment hub for West Africa, but progress has been stalled.
However, similar to the Badagry Deep Seaport, the Dagbolu ICD has faced numerous hurdles that have delayed its implementation. The procurement process has been slow, with the ICRC reviewing the Request for Proposal (RFP) and approving it for the Nigerian Shippers’ Council to issue to prequalified bidders.
The Ibom Deep Water Port in Akwa Ibom, with a value of $4.2 billion, is another critical project that has been stalled. Sponsored by the Federal Ministry of Transportation (now Marine and Blue Economy), this project is also stuck at the procurement phase, with the last update dating back to September 2022. The development of this port is crucial for enhancing Nigeria’s maritime infrastructure and boosting economic activities in the region.
The Ibom Deep Water Port is envisioned as a major port facility that would cater to the growing maritime trade in the Gulf of Guinea. Its strategic location in Akwa Ibom State positions it as a key gateway for international trade, serving not only Nigeria but also neighbouring countries.
The port is expected to provide state-of-the-art facilities for handling various types of cargo, including containers, bulk goods, and oil products. With its deep draft and modern infrastructure, the Ibom Deep Water Port could accommodate larger vessels, making it a preferred destination for international shipping lines.
However, our correspondent gathered that despite its strategic importance, the Ibom Deep Water Port project has been stalled. The procurement phase has been prolonged, with potential investors and stakeholders grappling with issues related to funding, regulatory approvals, and environmental considerations.
The high cost of the project, estimated at $4.2 billion, requires substantial investment from both public and private sectors. Additionally, there have been concerns about the project’s impact on the local environment and communities, which have further complicated the approval process.
Also, our correspondent gathered that several Inland Container Depots (ICDs) across Nigeria, with the aim of improving cargo handling and reducing congestion at the seaports, have also experienced significant delays. These projects, all sponsored by the Nigerian Shippers’ Council. They include:
Heipang ICD in Jos, Plateau State: Valued at $625 million, last updated in April 2018, Ibadan ICD in Oyo State: Valued at $625 million, last updated in April 2020, Isiala-Ngwa ICD in Abia State: Valued at $1.35 million, last updated in April 2018, Maiduguri ICD in Borno State: Valued at $625 million, last updated in April 2018, Zamfarawa ICD in Katsina State: Valued at $625 million, last updated in April 2018.
Stakeholders have noted that these ICDs are crucial for facilitating efficient cargo distribution across Nigeria, reducing the bottlenecks at major seaports, and supporting regional economic growth. However, their implementation has been stagnant, with no significant progress reported in recent years.
The Heipang ICD in Jos, Plateau State, is designed to serve the central region of Nigeria, providing a central hub for cargo handling and distribution. The project aims to reduce the logistics costs for businesses in the region and improve the efficiency of cargo movement. However, the project has been stuck in the implementation phase since April 2018, with no significant progress reported.
Similarly, the Ibadan ICD in Oyo State is intended to serve the southwestern region of Nigeria, providing a strategic facility for cargo handling and distribution. The project aims to decongest the Lagos ports and improve the efficiency of cargo movement in the region. However, like the Heipang ICD, the Ibadan ICD has also been stuck in the implementation phase since April 2018.
The Isiala-Ngwa ICD in Abia State is another critical project that has faced delays. Valued at $1.35 million, this project is intended to serve the southeastern region of Nigeria, providing a strategic facility for cargo handling and distribution. The project aims to reduce the logistics costs for businesses in the region and improve the efficiency of cargo movement. However, the project has been stuck in the implementation phase since April 2018.
The Maiduguri ICD in Borno State and the Zamfarawa ICD in Katsina State are both designed to serve the northern region of Nigeria, providing strategic facilities for cargo handling and distribution. These projects aim to reduce the logistics costs for businesses in the region and improve the efficiency of cargo movement. However, both projects have been stuck in the implementation phase since April 2018.
A source in the Ministry of Marine and Blue Economy who pleaded anonymity said the delay in these maritime projects can be attributed to several factors, including bureaucratic red tape, funding challenges, and procurement issues.
He told our correspondent that: “The prolonged stagnation not only hampers Nigeria’s economic growth but also affects its competitiveness in the global maritime industry. One of the major issues contributing to the delays is bureaucratic red tape.
“The procurement process for these projects involves multiple stages of approvals and negotiations with various stakeholders, including government agencies, private investors, and regulatory bodies. This process can be time-consuming and complicated, leading to significant delays in project implementation.
‘Funding challenges are another major factor contributing to the delays. The high cost of these projects requires substantial investment from both public and private sectors. Securing the necessary funding can be difficult, especially in the current economic climate characterized by fluctuating foreign exchange rates and economic uncertainties. Additionally, attracting qualified investors who are willing to commit to these long-term projects can be challenging.
‘Procurement issues are also a significant factor contributing to the delays. The procurement process for these projects involves issuing Requests for Proposal (RFPs), evaluating bids, and negotiating contracts with potential investors. This process can be complicated and time-consuming, especially if there are issues related to the transparency and fairness of the bidding process. Additionally, negotiating favorable terms for both the public and private sectors can be challenging, leading to delays in finalizing contracts.
“The prolonged stagnation of these maritime projects not only hampers Nigeria’s economic growth but also affects its competitiveness in the global maritime industry. The delays in the completion of these projects mean that Nigeria is missing out on potential economic benefits, including increased trade, job creation, and foreign investment. Additionally, the inefficiencies in the current port infrastructure”.
