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Nigeria targets $1bn port upgrade to slash $1trn losses

Published by YuToday Staff

0 views · 1 hour ago · 3:46 read · September 2, 2026

Nigeria is investing $1 billion to modernise its ports, targeting a reduction in the N1 trillion annual losses attributed to inefficiencies, congestion, and outdated infrastructure. The Nigerian Ports Authority (NPA) says the upgrades will enhance competitiveness, attract more cargo, and align the country’s maritime sector with regional leaders like Ghana’s Port of Tema.

Key takeaways

Nigeria’s $1 billion port modernisation aims to cut N1 trillion in annual losses from inefficiencies and outdated infrastructure.
Cargo dwell times in Nigerian ports average 18 to 21 days, far exceeding the global benchmark of four days.
Port charges in Nigeria are 30 to 40 percent higher than those in regional competitors like Lomé and Tema.
The project seeks to position Nigeria as a key maritime hub in West Africa, competing with ports like Ghana’s Port of Tema.

Why Nigeria’s ports are losing billions annually

Nigeria’s port system has long struggled with inefficiencies, including cargo dwell times of 18 to 21 days—far exceeding the global benchmark of four days. These delays, combined with outdated infrastructure and high port charges, cost the country an estimated N1 trillion per year. The NPA reports that Nigeria lost over 56 million metric tonnes of cargo between 2014 and 2022, while customs revenue losses exceeded N130 billion annually due to systemic inefficiencies. Port charges in Nigeria are also 30 to 40 percent higher than those in regional competitors like Lomé and Tema, making the country less attractive to shipping lines and cargo owners.

How modernisation aims to transform Nigeria’s maritime sector

The $1 billion port modernisation project is designed to address Nigeria’s long-standing challenges by introducing automation, improving infrastructure, and reducing congestion. The NPA’s Managing Director highlighted that the upgrades will help Nigeria compete more effectively with regional ports, such as Ghana’s Port of Tema, which boasts a draught of over 16 metres and an automated scanning system. By reducing cargo dwell times and lowering operational costs, the project aims to attract more vessel calls and increase the share of regional cargo passing through Nigerian ports, which currently stands at just 25 percent despite Nigeria accounting for over 60 percent of West Africa’s GDP.

Regional competition and Nigeria’s maritime ambitions

Nigeria’s economic dominance in West Africa is not reflected in its maritime sector, where regional competitors like Ghana and Togo have gained an edge through modern infrastructure and technology. The NPA’s leadership emphasised that Nigeria must modernise to unlock its blue economy potential and reduce reliance on inefficient ports. The project aligns with broader efforts to position Nigeria as a key maritime hub, but success will depend on timely execution and sustained investment in automation and infrastructure upgrades.

Challenges and expectations for the modernisation project

While the $1 billion investment is a significant step, the project faces challenges, including funding, coordination among stakeholders, and the need for rapid implementation to see tangible results. The NPA has not provided a detailed timeline for completion, but the goal is to reduce cargo dwell times, lower port charges, and improve efficiency. If successful, the modernisation could serve as a model for other African nations seeking to revitalise their port sectors and boost economic growth through trade.

The economic impact of a modernised port system

A modernised port system could unlock billions in economic benefits for Nigeria, including increased customs revenue, reduced logistics costs, and a boost to the blue economy. The NPA estimates that inefficiencies in the current system cost Nigeria over N130 billion annually in lost customs revenue alone. By improving competitiveness and attracting more cargo, the project could also create jobs, stimulate trade, and enhance Nigeria’s role in regional and global supply chains. However, the full economic impact will depend on the pace and effectiveness of the modernisation efforts.

What happens next

The success of Nigeria’s port modernisation will hinge on timely execution and sustained investment. If the project meets its goals, it could serve as a blueprint for other African nations looking to revitalise their port sectors. Stakeholders will closely monitor progress to ensure the upgrades deliver tangible improvements in efficiency and competitiveness.