The Nigerian maritime and rail sectors experienced notable advancements in 2023, with several developments promising to reshape the nation’s transport infrastructure. However, the year also came with its share of setbacks. Here are key highlights from 2023.

Lekki Port Emergence

The year started on a promising note with the commissioning of the $1.5 billion Lekki Deep Seaport by former President Muhammadu Buhari in January 2023. As Nigeria’s first automated port, Lekki Port was expected to reclaim lost cargo from rival ports in Accra, Lome, and Abidjan. The port, capable of handling very large vessels, began commercial operations by the second quarter of 2023. Its emergence sent ripples through Nigeria’s maritime industry, compelling operators at Apapa and Tin-Can Ports to upgrade their capacity to accommodate similarly large vessels. This competitive pressure has driven positive changes across Nigeria’s port operations, with operators now vying to remain competitive.

A clearing agent, Basil Okpara, noted, “River ports had to up their game not to get frozen out of business by Lekki Port, which could handle very large vessels. This competitiveness was not there before Lekki Port.”

Improved Maritime Security

The Nigerian Maritime Administration and Safety Agency (NIMASA), in collaboration with the Nigerian Navy, has significantly improved maritime security in recent years. Piracy attacks, which once plagued Nigerian waters, have seen a substantial decline. Speaking in April 2023, NIMASA Director General, Dr. Bashir Jamoh, revealed that piracy incidents dropped from 82 in 2018 to zero by 2022, a record that continued through the first quarter of 2023.

This improvement in maritime security led to the International Bargaining Forum (IBF) removing Nigeria from its list of risk-prone maritime nations in February 2023. While concerns about piracy in the Gulf of Guinea remain, NIMASA and the Nigerian Navy have effectively managed the threat, reducing the need for War Risk surcharges on Nigerian-bound cargo.

Failed Disbursement of CVFF

Indigenous shipowners started the year with high hopes for the disbursement of the $700 million Cabotage Vessel Financing Fund (CVFF), established to support local operators in the nation’s shipping industry. In January, NIMASA announced that five Primary Lending Institutions (PLIs) had been appointed to handle the disbursement process, with expectations of quick action.

However, the transition from President Buhari’s administration to President Bola Tinubu’s government slowed the process. By the end of 2023, the funds remained undisbursed, leaving indigenous shipowners without access to the much-needed financial support.

Collapsing Ports

Throughout 2023, concerns about the deteriorating condition of Nigeria’s ports, especially Apapa, Tin-Can Island, Onne, and Calabar, made headlines. According to Nigerian Ports Authority (NPA) Managing Director, Mohammed Bello Koko, these ports require an $800 million rehabilitation investment. Palliative measures are no longer sufficient, and full-scale rehabilitation is needed to ensure that Nigeria’s ports can continue to function effectively in a digital age.

The newly created Ministry of Marine & Blue Economy is expected to prioritize these rehabilitation efforts, with approvals anticipated in the new year.

Rail Sector Challenges and Progress

The Nigerian rail sector faced significant challenges in 2023, starting with the Naira scarcity, which left many passengers stranded. The rejection of old Naira notes by Nigerian Railway Corporation (NRC) staff compounded the situation, leading to widespread frustration.

In January, the Warri-Itakpe train service was suspended following a derailment, and it took until April 2023 for services to resume. However, a turning point for the sector came in September with the launch of cargo evacuation services from Lagos to Ibadan by rail. This initiative, aimed at alleviating congestion at Apapa Port, was expected to significantly reduce the reliance on road transport for cargo movement.

While the Honourable Minister of Transportation, Saidu Alkali, anticipated up to 90 monthly trips for the Lagos cargo train, challenges related to handling charges and cargo availability have limited progress, with the expected number of trips yet to materialize.

Conclusion

2023 saw significant strides in Nigeria’s maritime and rail sectors, with developments such as the emergence of Lekki Port and improvements in maritime security boosting optimism. However, challenges, including the delayed disbursement of the CVFF and issues with port infrastructure and rail services, underscore the need for continued investment and reforms in these critical sectors. As the year draws to a close, stakeholders are hopeful that 2024 will bring the necessary progress to further enhance Nigeria’s transportation infrastructure.