Findings by Shipping Position Daily, have revealed that eight out of the 27 concession agreements between terminal operators and the Nigerian Ports Authority (NPA) have expired, leaving questions about the continuity and management of port operations at these facilities.
The affected terminals, scattered across major Nigerian ports, include those located in Apapa, Tin Can Island, Onne, and Warri.
The data obtained by Shipping Position Daily from official documents detailing concession agreements showed that the expired concessions, which were granted to private operators for periods ranging from 10 to 25 years, covered both bulk cargo handling and container terminal operations.
Among the expired leases is the 15-year concession granted to ENL Consortium for the management of Apapa Terminal D, which expired in 2021. Similarly, Greenview Development Nigeria Limited saw its 15-year concession for Apapa Terminal E end in the same year. The Tin-Can Island Container Terminal Limited (Terminal B) concession, initially granted in 2006, expired back in 2016, yet operations continue amid concerns about the legal status of their activities.
Further findings showed that Five Star Logistics Limited, operators of the Tin-Can Island Port (TCIP RORO) terminal, had its 15-year concession lapsing in August 2021. Other expired concessions include Ports & Terminal Multiservices Limited, which managed TCIP Terminal E under a 15-year agreement that also expired in 2021, and Brawal Oil Services Limited, whose Onne FLT A terminal lease ended in 2016. At the Warri New Port, the lease granted to Associated Maritime Services Limited for Terminal A ended in 2021, while Intels Nigeria Limited’s concession for Onne FLT B expired over a decade ago, in 2012.
Stakeholders in the maritime industry including the Maritime Workers Union of Nigeria (MWUN) have lamented the delay in renewing the concessioning agreement. The MWUN had expressed frustration over the extended delay in renewing the port concession agreements for terminal operators across Nigeria’s seaports.
President General of MWUN; Comrade Adewale Adeyanju, at the recent 2024 Dockworkers’ Day celebrations in Lagos said the workers are determined to see the signing of the licenses, which have been long overdue. He appealed to the Federal Government to ensure that the agreements are signed as soon as possible, as this is currently impacting on operations at the seaports.
Adeyanju said: “We want to see the renewal of the licenses of terminal operators. There are a lot of dividends that we are getting from giving us responsible terminal operators. Why are you delaying the signing of their agreements? The workers are now warming up, because they are worried about what is happening to their employees.
Also reacting to the delay, President, National Association of Air Freight Forwarders Consolidators (NAFFAC) Mr Yinka Bakare lamented the delay, even as he opined that it is not all the terminal operators that deserve to have their concession renewed.
“I do not think all the terminal operators currently operating at the Nigerian ports deserve their concession agreement to be renewed. While some of them are trying their best to improve their services, we have some of the concessionaires that did not add one single piece of equipment since they took over. I think the authorities involved should critically look into the renewal and ensure that only”, he argued.
Recall that the Nigerian government embarked on a port concession programme in 2006 as part of broader reforms aimed at improving efficiency and reducing the burden on the NPA. Concessions were granted to private operators under the Public Private Partnership (PPP) model for a fixed period, after which the terminals would either be returned to the NPA or undergo renewal processes based on performance and negotiations.
