The Maritime Sector’s Overreliance on Lagos and the Need for Regional Development
Nigeria, a country rich in natural resources and economic potential, continues to face significant challenges in its maritime sector. Despite its vast coastline and strategic location, the nation remains heavily dependent on Lagos as the primary hub for international trade. While recent investments in the modernisation of Apapa and Tin Can Island Ports are promising, they raise critical questions about the future of Nigeria’s maritime infrastructure beyond the city.
The statistics highlight the inefficiencies plaguing Lagos ports. Despite substantial investments, these facilities continue to suffer from chronic congestion, delays, and operational inefficiencies. For instance, the Lekki Deep Sea Port, designed to alleviate pressure on Lagos’ existing ports, operates at only 20% of its projected capacity. This underutilisation underscores a broader issue: the neglect of other regional ports that could play a vital role in distributing trade and reducing overreliance on a single hub.
Underutilised Eastern Ports and Their Potential
The eastern ports, including Onne, Port Harcourt, Calabar, and Onitsha, hold immense potential for economic growth but remain largely underdeveloped. Onitsha, strategically located along the Niger River, could generate over N10bn annually if fully operational. However, inadequate dredging, political interference, and outdated infrastructure have hindered its development. Similarly, Onne Port, Nigeria’s fastest-growing seaport, faces similar challenges despite operating under multiple concessions.
Port Harcourt and Calabar also show signs of underutilisation, with outdated facilities and limited commercial cargo handling. These ports, if revitalised, could serve as key links for trade in the southeastern region, reduce dependence on Lagos, and stimulate local economies.
A Multi-Regional Approach to Port Development
To address these issues, Nigeria must adopt a multi-regional approach to port development. By investing in other regional ports and supporting infrastructure such as roads, rail, and logistics networks, the country can distribute economic benefits more evenly, enhance national logistics resilience, and reduce overreliance on Lagos.
The Federal Government has made some progress in this area. The $1bn modernisation project for Apapa and Tin Can Island Ports is part of a broader 10-year marine and blue economy strategy aimed at positioning Nigeria as a leading maritime hub in West Africa. However, this vision cannot be achieved by focusing solely on Lagos.
The Role of Concessions and Private Investment
Private investment has played a role in improving port operations. During the Muhammadu Buhari administration, the Nigerian Ports Authority initiated the concession of port operations to private terminal operators. APM Terminals, for example, invested approximately $438m over 17 years to upgrade the Apapa Container Terminal. While these efforts have led to some improvements, challenges such as congestion, inadequate road infrastructure, and inefficient cargo clearance persist.
The Lekki Deep Sea Port, a $1.5bn project, was intended to ease congestion at Lagos’s existing ports. However, as of mid-2025, it is operating at only 20% of its projected capacity. While macroeconomic challenges such as currency depreciation and fuel subsidy removal contribute to this shortfall, the effectiveness of the project also depends on timely completion of the $652m China Exim Bank-funded road project to evacuate cargo from Lekki.
Evaluating the Effectiveness of Investments
The effectiveness of these investments should be measured through various performance indicators, including cargo throughput, ship turnaround time, infrastructure development, and operational efficiency. However, comprehensive evaluations that encompass all aspects of port performance are limited, highlighting the need for more robust assessment frameworks.
A study by Tonyudoh (2023) examined the impact of port concessions on the development of port infrastructure and the shortening of ship waiting times at Apapa and Tin Can Island Seaports. The study found that port concessions accounted for 13.5% of the overall variance in the development of port infrastructure and 18.0% in the reduction of ship waiting times. These findings suggest that while concessions have had some positive impact, the overall effectiveness has been limited, indicating the need for a more holistic approach to port development.
The Path Forward
To maximise the $1bn modernisation of Lagos ports, Nigeria must develop the eastern ports alongside supporting road, rail, and logistics infrastructure. Transparent implementation and a nationwide maritime strategy are essential to ensure sustainable growth.
The neglect of South-East ports represents missed opportunities for regional trade, economic growth, and international competitiveness. Focusing solely on Lagos worsens congestion at Apapa and Tin Can Island and deepens regional inequalities. A multi-regional approach would distribute economic benefits, enhance national logistics resilience, and reduce overreliance on one hub.
By spreading investments beyond Lagos, Nigeria can unlock the full potential of its maritime sector and ensure long-term national development.
