The 2006 port concession programme transferred terminal operations from direct public management to a landlord model, attracting private investment and improving operational efficiency
By Moses Okorie
The Sea Empowerment and Research Centre (SEREC) has urged the Federal Government to ensure transparency, accountability and performance-based assessments in renewing Nigeria’s 2006 port terminal concession agreements.
The organisation’s Co-Founder and Head of Research, Dr Eugene Nweke, made the call in a statement issued on Friday in Lagos, warning against treating the renewal process as an automatic decision based solely on fears of potential financial losses.
Nweke explained that the 2006 port concession programme transferred terminal operations from direct public management to a landlord model, attracting private investment and improving operational efficiency.
However, he maintained that the gains recorded under the arrangement did not automatically entitle existing terminal operators to contract renewal, insisting that decisions must be guided by verifiable performance records.
He said Sections 5, 6, 7 and 8 of the concession agreements provided for periodic assessments, making performance a critical factor in determining whether contracts should be renewed.
According to him, relevant indicators include concession fees, cargo throughput, capital investment, equipment replacement, maintenance, safety standards, service quality and compliance with contractual obligations.
Nweke noted that the World Bank framework envisaged performance assessments to guide the Nigerian Ports Authority (NPA) in deciding whether to renew existing agreements or subject the terminals to competitive re-tendering.
He argued that neither renewal nor non-renewal should automatically be regarded as a financial gain or loss to the government, stressing the need to prioritise long-term economic value.
He recommended evaluating the fiscal implications of each option by considering government revenue, transition costs and opportunity costs, supported by Net Present Value analysis to determine the most economically beneficial approach.
On investments by terminal operators, Nweke disclosed that about N200 billion had been invested over 10 years, compared with the initial projection of N50 billion. He, however, stressed that such investments did not confer permanent ownership rights or guarantee automatic contract renewal.
The SEREC researcher also cited the Nigerian Maritime Administration and Safety Agency’s (NIMASA) floating dock as an example of the economic consequences of underutilised public assets.
He said the N50 billion asset, acquired in 2018, had failed to deliver its full economic potential due to its non-deployment, resulting in foreign exchange leakages, lost employment opportunities, unrealised revenue and setbacks in maritime skills development.
According to him, the situation highlights weaknesses in coordinating asset deployment, infrastructure, location, operators, market conditions, regulation, financing and accountability.
To address these challenges, Nweke called for terminal-by-terminal audits, public disclosure of key performance indicators, reconciliation of concession fees and stronger periodic reviews.
He also advocated an accountable commercial deployment programme for the floating dock, supported by a clearly identified operator, measurable utilisation targets and a definite operational timetable.
He stressed that transparent, evidence-based decisions would strengthen public confidence, protect government revenue and ensure that Nigeria’s maritime assets deliver sustainable economic benefits.