Two years into President Bola Ahmed Tinubu’s administration, Nigeria’s maritime sector has seen a whirlwind of changes, but the storm of challenges isn’t over yet. The industry has been through an overhaul, with reforms that have sparked both optimism and skepticism. Let’s dive in and see what’s been shaking up the waves.
When Tinubu stepped into office, the maritime sector was in a pickle. Congested ports, outdated infrastructure, slow cargo clearance processes, and insecurity in the Gulf of Guinea were just the tip of the iceberg. Shippers and investors were giving Nigeria the cold shoulder, viewing its waters as costly and inefficient. The House of Representatives cried foul, estimating that port inefficiencies were costing Nigeria a staggering $7 billion yearly. The Lagos Chamber of Commerce and Industry (LCCI) chimed in, reporting that businesses were incurring a yearly loss of N2.5 trillion due to port inefficiencies and infrastructure deficits. It was a mess, and stakeholders were clamoring for change.
Tinubu didn’t waste time. He kicked off his economic reform by separating the maritime sector from the Ministry of Transportation, a move that stakeholders applauded. The creation of the Federal Ministry of Marine and Blue Economy in August 2023 was a bold step, aiming to harness the sector’s vast economic potential. The ministry, headed by Adegboyega Oyetola, developed a comprehensive National Blue Economy Strategy Plan, outlining a 10-year roadmap for sectoral growth. The plan is all about addressing longstanding challenges, enhancing competitiveness, and aligning with the African Continental Free Trade Area (AfCFTA) to boost regional trade.
But talk is cheap, and Tinubu’s administration has been walking the walk. Port infrastructure development has been a priority, with rehabilitation projects worth $1 billion for major ports. The upgrades at Lagos and Onne ports are expected to increase cargo handling capacity by over 30 per cent, reducing turnaround times and enhancing competitiveness. APM Terminals has already completed the rehabilitation of Apapa port quay apron under the PPP model. New port projects are also underway in locations like Badagry, Ilaje, and Ibaka, aiming to decentralize maritime activities and boost regional economies.
Digital transformation has been another key focus. The government launched digital platforms like the National Single Window (NSW) and the Port Community System (PCS) to streamline port operations and reduce bureaucratic bottlenecks. The Nigeria Customs Service (NCS) also migrated to an indigenous platform, ‘B’Odogwu,’ to modernize cargo clearance procedures. These initiatives are designed to streamline information exchange among port stakeholders, laying the groundwork for enhanced port efficiency and trade facilitation.
Maritime logistics and energy initiatives have also seen significant strides. The administration facilitated a joint venture between NNPC Shipping, Stena Bulk, and Caverton Marine to establish a modern, sustainable shipping fleet. This initiative strengthens Nigeria’s crude oil and LNG transportation infrastructure, reduces reliance on foreign vessels, creates jobs, and promotes sustainability.
The long-awaited Cabotage Vessel Financing Fund (CVFF) has finally been approved for disbursement in August 2025. This fund is set to empower local capacity in the global shipping trade, with indigenous ship owners poised to get back into the game. The administration has also secured a $600 million investment from Danish shipping giant Maersk to upgrade seaport infrastructure, further bolstering the sector.
But let’s not kid ourselves, challenges persist. High costs of port operations, lack of functional rail connections to inland dry ports, and inter-agency rivalries are still hindering seamless maritime trade. Critics argue that without stronger enforcement and accountability mechanisms, these reforms could stall. Stakeholders have been vocal about the need for infrastructure upgrades, modern cargo handling equipment, smart technologies, and the disbursement of the CVFF.
The decongestion of the Lagos port corridors is a case in point. For decades, this issue has been a thorn in the side of the maritime sector, with various government committees failing to provide a lasting solution. Under Tinubu’s leadership, the Nigerian Ports Authority (NPA) has finally cleared the decade-long traffic gridlock, promoting ease of doing business and supporting export activities.
The integration of rail freight for cargoes from the port is another significant development. The government finalized the APMT Terminal in Apapa, enabling over 105 containers to be ferried daily by rail, reducing road congestion and improving cargo evacuation efficiency. This move is a game-changer, addressing one of the sector’s longstanding challenges.
Revenue generation and economic impact have also seen significant improvements. Agencies in the maritime sector have reported enhanced revenue due to better port operations and infrastructure upgrades. These reforms have been praised for transforming the maritime industry and contributing