Nigeria finally buys into Africa free trade, seeing windfall for seaports
Aerial view of the Port of Lagos, Nigeria. African countries intend to create a market of 1.3 billion people and a GDP of $4.4 trillion. And Nigerian officials say they can only rely on ports to ease movement of goods
What you need to know:
- African countries intend to create a market of 1.3 billion people and a GDP of $4.4 trillion. And Nigerian officials say they can only rely on ports to ease movement of goods.
Nigeria is finally buying into the African Continental Free Trade Area (AfCFTA), seeing a windfall for its seaports for the west African country.
The AfCTA is touted as world’s largest free trade zone, when fully implemented, designed to open robust economic growth through facilitation of trade among the 55 countries in Africa. But Nigeria is a late entrant, initially reserved about the idea of collapsing barriers to trade, which it saw as potentially killing local industries.
Dr Abubakar Dantsoho, the managing director, Nigerian Ports Authority (NPA), says the country now sees itself as a future maritime logistics hub for sustainable port services under AfCFTA.
At the Nigerian British Chamber of Commerce (NBCC) maritime and logistics sector forum in Lagos on March 4, Dantsoho said AfCFTA was viewed by many as a threat to Nigerian ports because it sought to collapse all trade barriers within the continent.
He, however, stated this week that for a seaport to maintain its market position, it should improve its competitive edge to stay ahead of its rivals and should respond to new requirements of shipping lines and adapt to the dynamics of port operations.
African countries intend to create a market of 1.3 billion people and a GDP of $4.4 trillion. And Nigerian officials say they can only rely on ports to ease movement of goods.
“Through strategic investments in port infrastructure and a commitment to sustainable growth, Africa is charting a course towards becoming a vital hub for future global trade,” says Thomas Okbo, GAC’s Group Vice President – Europe and Africa.
GAC, is a shipping, logistics, and marine services company that operates in ports around the world, including in Nigeria: “As ship agents, we understand the importance of well-developed port infrastructure in facilitating efficient maritime trade and operations,” said Okbo.’
Okbo said several African countries were already tackling trade bottlenecks, reducing costs and boosting their ports’ competitiveness by improving logistics processes and systems, streamlining customs procedures and improving their interconnected road and rail networks.
“Such efforts are making Africa an easier place to do business – and that brings growing need for GAC’s expertise and experience to support customers looking to tap into the potential of new markets,” he added.
Ray Atelly, President of the Nigerian-British Chamber of Commerce (NBCC) said port efficiency and competitiveness played a defining role in Nigeria’s economic growth and regional leadership.
Atelly noted that Nigeria’s strategic location along the Gulf of Guinea presented a unique opportunity to position its ports as the preferred gateway for trade in West Africa.
He stressed the need to confront pressing challenges ranging from infrastructural bottlenecks and regulatory inefficiencies to digital transformation and intermodal connectivity.
“If we are to enhance our competitiveness, we must embrace reforms that drive efficiency, reduce turnaround times, and create an enabling environment for businesses to thrive.
“Our collective goal is to build a modern, technology-driven port system that meets international standards, attracts investment and facilitates seamless trade across the region.
“This requires strong collaboration between government, regulatory agencies, port operators, and private sector players to establish Nigeria as a maritime powerhouse,” Atelly said.
"Africa was the only region in the world to show an increase in port calls by dry bulk carriers – up 2.5 percent in 2022 – in parallel with a 5 percent increase in port calls by liquid bulk carriers in the same period,’’ the report says.
According to the report, the upward trend is expected to continue over the next few years and that the World Economic Forum anticipates an increase in the region’s maritime trade from 58 million tonnes in 2023 to 132 million tonnes by 2030.
"And that could significantly ramp up, potentially doubling the $36.8 billion worth of goods African states currently import every year.’’
In addition to the Lagos Apapa, Tin Can Island ports and many other across the nations, Nigeria, for example, has built a brand new Lekki Deep Sea Port, a $1.5 billion facility to handle more than 2.7 million containers a year had been commission.
