Port Congestion: Expert Seeks NPA–Bonded Terminals Collaboration

A maritime consultant and legal practitioner, Barrister Caleb Muoka, has advised the Federal Government to take proactive steps to avert a looming port congestion, warning that the signs of an imminent boom in Nigeria’s economy may overwhelm the nation’s seaports if urgent measures are not taken.

Speaking to PortNews on the sidelines of the recently held PortNews Summit in Lagos, Muoka explained that beyond the traditional end-of-year surge in cargo volumes due to yuletide and New Year activities, several positive economic indicators are now converging to put pressure on the ports.

According to him, improvements in the value of the Naira, exponential growth in non-oil export, a significant rise in crude oil exports, and the assertive entry of Dangote Refinery into the domestic petroleum market have all combined to rejuvenate the Nigerian economy.

The first sector to feel this impact, he noted, is the maritime industry, where a noticeable rise in ship traffic and cargo throughput is already emerging—early signals of potential port congestion.

“Frankly, the signals are glaring for all to see. The economy is waking up; it is on an upward trajectory,” Muoka said. “Export returns have been impressive, with the Federal Government celebrating that export revenue has recently surpassed that of import. But we all know that Nigeria is fundamentally an importing economy, especially when economic activities rebound.”

Muoka also highlighted the massive forex relief created by Dangote Refinery. Since its emergence, oil marketers no longer scramble for foreign currencies to import petroleum products, a development he described as transformative.

“The desperation for dollars among the business class has waned. About $6 billion previously needed for fuel importation is now saved. Marketers simply go to Lekki and load products from Dangote Refinery. A lot of foreign exchange is now conserved for domestic business endeavours. The fallout is a more stable economy and increased purchasing power for ordinary Nigerians,” said Muoka.

He cautioned, however, that as the economy strengthens, both import and export activities will expand sharply—putting Nigerian seaports at risk of congestion.

To mitigate this, he stressed the urgent need for collaboration between the Nigerian Ports Authority (NPA), the Nigerian Shippers’ Council, seaport terminal operators, and off-dock bonded terminals nationwide.

“Congestion might be imminent as economic activities rise. Port terminals will bear the brunt if nothing is done. Authorities must work with off-dock bonded terminals to prevent operational hiccups and national embarrassment,” he warned.

Muoka noted that bonded terminals are ready and have adequate capacity to support the system if properly integrated.

According to him, “NPA should act early by arranging collaborative container transfer agreements between port terminals and bonded terminals. I am a bonded terminal operator—Zarmmak Terminals can handle 10,000 TEUs. Other bonded terminals around the Mile 2–Festac axis also have huge capacities. Government must engage us. We have the capacity; Nigeria is blessed.”

On the persistent shortfall in ships and cargo-carrying capacity, Muoka called for a comprehensive review of the Cabotage Act of 2003, particularly the administration of the Cabotage Vessel Financing Fund (CVFF).

“The fund should be disbursed every four years for the purpose it was created. This will help grow the cabotage sector, create jobs for thousands of trained but idle young seafarers, and restore confidence among prospective CVFF beneficiaries,” he submitted.