‘Small ports can improve operational efficiency by 60%’
Nigeria could reduce total port and logistics costs by 14 per cent and improve operational efficiency by as much as 60 per cent if the country fully transitions to smart
Nigeria could reduce total port and logistics costs by 14 per cent and improve operational efficiency by as much as 60 per cent if the country fully transitions to smart port systems, senior maritime industry officials and regulators, have said.
The projections were among the business cases presented at the 6th edition of the JournalNG Port Industry Town Hall Meeting held in Apapa, Lagos, with: “Towards a Regime of Smart Ports in Nigeria” as theme.
The gathering drew regulators, port operators, Customs officials, and maritime researchers who collectively outlined a roadmap for digitising the country’s port infrastructure to close a widening competitiveness gap with global trade rivals.
Delivering the keynote address, the Registrar of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Kingsley Igwe, anchored his case on the weight of global benchmarks, noting that the gains were not speculative but evidenced by international data.
“There is a global statistics that has proven that smart ports can reduce the cost of port operations by 14 per cent in an ideal environment. Judging from my experience both as a practitioner and regulator, if Nigeria advances into a smart port system, we will be reducing total ports and logistics costs by 14 per cent, while efficiency will improve by 60 per cent, especially in reducing labour costs,” he said.
Igwe explained that personnel expenses account for between 60 and 70 per cent of operational costs in most organisations, making technology-driven systems essential for reducing overheads.
He described smart ports as environments that rely on automated systems, data analytics, artificial intelligence, and integrated infrastructure to enhance productivity and reduce dependence on manual processes.
He stressed the need for round-the-clock port operations, warning that limited working hours inflate logistics costs and storage charges for cargo owners. He added that smart port adoption would also help Nigeria climb the World Bank’s Logistics Performance Index rankings and cut congestion and cargo dwell time.
The urgency of that imperative was underscored by the Head of Research at the Sea Empowerment and Research Centre (SEREC), Eugene Nweke, who delivered the opening remarks and painted a stark picture of Nigeria’s current performance deficit.
Citing data from the United Nations Conference on Trade and Development, he noted that over 80 per cent of international trade by volume moves by sea, placing seaports at the centre of economic growth.
Despite Nigeria handling an estimated 70 to 80 per cent of cargo throughput across West and Central Africa, Nweke said the country’s ports remain hobbled by inefficiencies that are costing the economy dearly.
“Average cargo dwell time in Nigerian ports still ranges between 18 to 24 days, compared to three to eight days in fully digitised ports,” he noted, adding that logistics costs in Nigeria account for nearly 30 to 40 per cent of total trade costs, far above the global average of eight to 12 per cent, owing to manual processes, fragmented systems, and limited interoperability among agencies.
Nweke referenced leading smart ports such as Port of Rotterdam and Port of Singapore, noting that they had leveraged automation, artificial intelligence, and real-time data systems to slash vessel turnaround time by up to 30 to 50 per cent.
He argued that the performance gap between Nigeria’s traditional ports and these technologically advanced facilities was not merely operational but existential for the country’s trade competitiveness. “A smart port is not merely aspirational; it is urgent, inevitable, and foundational to Nigeria’s economic competitiveness,” he said.
He identified three critical pillars required for a successful smart port ecosystem: digital infrastructure and integration, automation and intelligence, and human capital development.
He pointed to platforms such as the Port Community System and the National Single Window as foundational tools, emphasising that countries that have implemented such systems recorded up to 50 per cent reduction in cargo clearance time alongside improved government revenue and investor confidence.
“For Nigeria, the National Single Window is not just a reform, it is a national economic necessity,” he said, adding that without a digitally skilled workforce, even the best infrastructure would remain underutilised.
“Let us be clear: smart ports require smart people. Without a digitally skilled workforce, the infrastructure will remain underutilised,” Nweke cautioned.
Reinforcing these positions, the Director General of the International Maritime Institute of Nigeria (IMION), Rear Admiral Thaddeus Udofia (Rtd.), who was represented by the Executive Director, Finance, Captain David Ajiboye, stressed that the shift was not a luxury but an economic imperative.
“Ports that deploy digital and automation systems can improve efficiency by up to 30 per cent and reduce logistics costs by as much as 25 per cent. Nigeria cannot afford to be left behind,” he said.
While the Lekki Deep Sea Port provides a glimpse of contemporary infrastructure, Udofia acknowledged that major Nigerian ports, such as Apapa Port and Tin Can Island Port, remain critical to international trade. He, however, noted that challenges such as congestion, delays in cargo clearance, manual processes, and fragmented agency coordination continue to erode efficiency and inflate the cost of business.
“Inefficiencies at ports can raise logistics costs by between 30 and 40 per cent, translating to higher prices for goods and reduced economic opportunities,” he noted.
He outlined IMION’s strategic role in supporting the transition through capacity building, policy advocacy, implementation research, and benchmarking against global standards, referencing ports such as Port of Singapore, Port of Rotterdam, Tanger Med Port, and Port of Tema as models.
He called for the development of a national smart port strategy and advocated pilot projects in strategic locations such as Lekki to test digital systems before scaling them nationwide.
“A smart port ensures that agencies work from shared platforms, cargo is tracked seamlessly, and decisions are driven by accurate data rather than manual processes. Data is now the lifeblood of modern ports. Those who harness it effectively will lead global trade,” he said.
On the regulatory side, the Public Relations Officer of the Tin Can Island Port Command of the Nigeria Customs Service (NCS), Oscar Ivara, who represented the Controller of the Command, Comptroller Frank Onyeka, said the Service was close to achieving full automation.
He disclosed that the NCS had adopted several global trade facilitation policies, including Advance Ruling, Time Release Studies, and the National Single Window, and was already about 90 per cent automated. He noted that the introduction of the internet-based B’Odogwu platform had enhanced cargo clearance efficiency by enabling officers to process transactions remotely.
He added that the Service was implementing the SMART Customs framework, focused on security, measurement, automation, risk management, and technology, with initiatives such as the Authorized Economic Operator programme, risk-based cargo selectivity, and satellite imagery at border posts already underway.
The Publisher of JournalNG Magazine and Convener of the town hall, Ismail Aniemu, who set the tone for the debate, pushed back against fears that automation would diminish jobs in the sector.
“We don’t need to be afraid. When we discuss smart ports, the unions often think workers will lose their jobs. No. If we migrate to a smart port system, it will create more jobs for smart people,” he said.
He expressed confidence in Nigerian professionals’ capacity to thrive in a technology-driven environment, drawing parallels with Nigerians excelling in medicine and engineering abroad.
“We have seen Nigerians with local certificates go abroad and perform as some of the best doctors and engineers. Maritime stakeholders and scholars in Nigeria can also perform optimally within and outside the shores of the country,” he added.
Aniemu also stressed that beyond infrastructure, the operational mindset of port actors remained a determinant of success, pointing to the banking sector’s round-the-clock digital services as a model for what is possible.
“The banks are ahead of us. The banks are ready. You can make payments at any time, even from the comfort of your room. If payments can be made and received at any hour, then it is also possible for cargo examination and clearance to take place at night. Customs, NDLEA, NAFDAC, everybody can operate shifts if we truly mean it,” he said.
Udofia’s closing message captured the collective sentiment at the forum: “The future of our ports will determine the future of our trade, and ultimately, the strength of our economy. The time to act is now.”
Industry observers say that if the recommendations from the town hall are translated into policy action, Nigeria could reposition itself as the dominant maritime hub in the West and Central African sub-region while significantly improving the ease of doing business at its seaports.
