- Friday, May 3, 2024
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The Federal Government is losing a whopping $7 billion yearly
to inefficiencies and poor management of the nation’s ports, the House of
Representatives said yesterday.
The two members of the House, Hon. Julius Ihonvbare and Hon
Ibrahim A. Isiaka who spoke also said the country's seaports receive barely 10per
cent of West African imports out of 60 per cent destined for the country while
others are lost to neigbouring countries.
In their joint motion at the resumption of plenary, the two
lawmakers said there was need for the House to carry out a comprehensive
investigation to unravel the gaps and opportunities lost by the country
annually.
The House therefore resolved to mandate its Committees on
Port and Harbours, National Planning and Economic Development, Maritime Safety
Education and Administration and Nigerian Shippers' Council to investigate the
gaps affecting the full realisation of the economic advantage of Ports and
Harbours and other Blue Economy in Nigeria.
Presenting the motion, Hon. Ihonvbare said the maritime
sector is crucial for the Nigerian economy's survival, but lament the
under-utilized seaports which can increase the nation's revenue and indeed the
National Gross Domestic Product (GDP).
He said: “Nigeria's
seaports receive barely 10per cent of West African imports out of 60 per cent
destined for Nigeria, a significant economic loss due to poor management and
inefficiencies, estimated to cost $7 billion annually.
“Most ships bringing goods to Nigeria prefer to go to other
ports order than Nigerian ports. Indeed the Benin Republic benefits from
Nigeria's large market, while Cotonou remains a popular importer's haven, huge
trade cargoes are lost to Togo and other neighbouring countries from where they
are offloaded and transshipped to Nigeria due to Poor shipping connectivity and
shallow drafts of the port channels which lead to trade cargo losses, estimated
to be N250 billion in 2016 alone”.
He questioned why the nation is unable to provide adequate
infrastructure and reduce pressure on Lagos ports and why the Calabar, Port
Harcourt, Warri, and Koko ports cannot be developed as a haven for importers in
the region.
According to him, the lack of adequate infrastructure and
capacity in the growing cargo and maritime business is a significant issue.
He said Nigeria's Apapa Port lost West Africa's leading
position due to congestion and poor quality services to shippers. Port of Lomé,
with a capacity of 1.1 million twenty-foot containers, overtook Lagos Port due
to modernization reforms which tripled its capacity from 311,500 containers to
3.1 million, thus, making 'Togo's Port of Lomé becoming a regional transit hub;
He said: “Nigeria's Apapa Port, Lagos, which handles about 1
million TEU annually, lost 30 per cent of its container traffic over five years
due to several factors bedeviling its inability to deliver efficient services
to cargo owners, this explains why Nigerian ports have remained inefficient
over the years.
“Nigeria's major seaports in Lagos do not have deep draughts
to handle bigger vessels, while modern seaports in Port of Lomé have a depth of
16.60 meters and capacity to accommodate third generation ships, Apapa port
operates with a 13,5 meters draught that can only allow vessels with about
4,000 TEUs of containers to call the port.”
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