Peter Obi requires port diversification past Lagos amid $1 billion Apapa and TinCan improve 

Peter Obi, former governor and presidential candidate, has referred to as on the Federal Authorities to diversify port improvement past Lagos, following the approval of $1 billion (approx. N1.5 trillion) for the modernisation of the Apapa and TinCan Island Ports.

Obi made the decision by way of a press release on his official X account on Friday, stressing the necessity for equitable infrastructure funding throughout Nigeria’s maritime sector.

Whereas acknowledging that modernising Lagos ports is commendable, Obi warned that the nation’s heavy focus of port actions in Lagos creates power congestion, excessive demurrage prices, and environmental pressures that undermine commerce effectivity.

He argued that different strategic ports, together with Warri, Port Harcourt, Calabar, and Onne, stay underdeveloped, regardless of their potential to stimulate regional economies, create jobs, and cut back strain on Lagos.

“I’ve famous the Federal Authorities’s current approval of $1 billion (N1.5 trillion) for the modernisation of the Apapa and TinCan Island Ports in Lagos. Whereas any effort to enhance effectivity and embrace know-how in our maritime sector is commendable, such an initiative have to be guided by accountability, transparency, and fairness for all Nigerians. Nonetheless, this improvement as soon as once more exposes a longstanding focus of our port improvement solely in Lagos.  

“Nigeria’s infrastructure funding stays excessively concentrated in Lagos, typically on the expense of different strategic ports resembling Warri, Port Harcourt, Calabar, and Onne. If absolutely developed, these ports may improve productiveness, drive commerce, create jobs, and open new financial corridors that might carry hundreds of thousands out of poverty throughout the federation,” the assertion learn partly. 

Extra insights  

Obi highlighted international examples of decentralised port methods, citing Vietnam’s 300 ports, Indonesia’s 111 industrial ports, and South Africa’s eight main seaports, noting that these international locations profit from nationwide connectivity, improved logistics, and balanced financial progress. Even Ghana, with solely two main ports, ensures they’re geographically unfold to maximise effectivity.

• He additional careworn that past bodily infrastructure, reforms should deal with corruption, cut back paperwork, and embrace know-how to create a seamless, paperless port system that improves turnaround instances and international competitiveness.

• Obi emphasised that if prudently managed, the Lagos modernisation may function a mannequin for broader maritime transformation throughout the nation.

He additionally referred to as for equity and fairness in Nigeria’s infrastructure planning, arguing {that a} actually nationwide blue financial system should contain each area and shift the nation from one pushed by consumption to at least one centered on manufacturing and shared prosperity.

What you must know  

The Apapa and TinCan Island ports, two of Nigeria’s busiest seaports, not too long ago obtained Federal Authorities approval of $1 billion for modernisation.

Based on Marine and Blue Financial system Minister Adegboyega Oyetola, the upgrades aimed to enhance cargo dealing with, increase capability to fulfill international requirements, and introduce a paperless, technology-driven port system to reinforce effectivity, cut back turnaround time, and curb corruption.

• He added that the federal government had begun the procurement course of for related modernisation initiatives at ports outdoors Lagos, highlighting that the Lagos upgrades shaped a part of the ministry’s 10-year marine and blue financial system technique.
• Earlier, in April 2024, the Nigerian Ports Authority introduced it was set to obtain a $700 million mortgage from Citibank, funded by UK Export Finance, to revamp the Apapa and TinCan Island ports. NPA Managing Director Mohammed Bello-Koko shared on his official X account that he had signed the Mandate Letter and Time period Sheet for the mortgage.
• The funds had been meant to rehabilitate the jetty wall for landside operations, enhance different infrastructure, and deepen the draft to 16.5 meters to accommodate bigger vessels. Implementation was to comply with approvals from the Minister of Marine & Blue Financial system, the Minister of Finance, and the Debt Administration Workplace.

Nonetheless, it has not been explicitly said whether or not the current $1 billion federal approval for Apapa and TinCan Island port modernisation is related to this earlier $700 million mortgage.