The Minister of Marine and Blue Economy, Mr. Adegboyega Oyetola, has announced that the renewal of port concession agreements for terminal operators, which have been pending since 2021, is underway and will be completed very soon.
This development addresses long-standing concerns over transparency and legality within Nigeria’s maritime sector.
Shipping Position Daily recalls that for over three years, terminal operators have continued to operate even though their concession agreements have expired.
The previous administration under President Muhammadu Buhari had rejected renewal bids from several operators, allegedly due to Key Performance Indicators (KPIs) that were not met and other benchmarks.
However, in an exclusive conversation with Shipping Position Daily last Friday, the Minister explained that the long wait would soon be over.
“We are actively working on renewing these concessions, and the process will be concluded very soon”, he assured.
The assurance comes as a welcome development for stakeholders who have been grappling with the legal ambiguities and operational challenges resulting from the expired agreements.
According to findings by our correspondent, some of the terminal operators whose concessions have yet to be renewed have raised concerns about the impact of the delay on their operations.
Speaking on condition of anonymity due to the contentious nature of the renewal process, they revealed that the prolonged delay has destabilized their operations, caused uncertainty among customers, and hindered potential new business opportunities.
“The renewal process has been stalled since the contract expired in 2021, despite meeting all the necessary terms for a new contract renewal,” lamented one of the operators.
They further expressed frustration over the lack of clarity and direction, which has significantly affected their ability to plan and execute long-term strategies.
Checks by our correspondent revealed that the expired concessions have allowed terminal operators to continue their operations without a current legal framework, raising questions about accountability and the potential for misconduct.
Reacting to the delay Mr. Eniola Igbaroola, a prominent chieftain of the Association of Nigerian Licensed Customs Agents (ANLCA), voiced strong criticism regarding the ongoing challenges in Nigeria’s maritime sector.
Igbaroola also highlighted the issues surrounding the renewal of port concession agreements. He criticized the government’s slow response and inadequate measures to address these challenges, suggesting that political interests might be influencing the delays.
His comments align with concerns raised by other stakeholders about the impact of these delays on operations and the legal framework governing port activities.
A freight forwarder; Mr. Chidi Anthony Opara expressed skepticism about the delays, suggesting that political maneuvering and vested interests might be contributing factors. “It’s possible that new political interests are at play, with ‘friends’ of the administration eyeing these lucrative concessions,” he stated.
Meanwhile, Mr. Bolaji Sunmola, Chairman of the Nigeria Port Consultative Council (NPCC), emphasized the need for thorough engagement and dialogue between the government and terminal operators. “We must assess the operators thoroughly,” Sunmola stated. “There needs to be a proper audit to understand the challenges they face, and these should be addressed through collaboration, not conflict.”
Adding further context, Mr. Ismael Omipidan, Chief Press Secretary to the Minister of Marine and Blue Economy confirmed that the Minister inherited the expired agreements and has since established a committee to investigate the circumstances surrounding their lapse.
“The Minister is methodical in his approach,” Omipidan explained, even as he added that “the Minister’s proactive stance aims to resolve the issues plaguing the port concession renewals swiftly and transparently. By addressing the expired agreements and working towards new concessions, the administration seeks to restore confidence in the maritime sector and ensure that operations are conducted under clear, fair, and accountable terms”.
