Port inefficiencies seen worsening food insecurity

Nigeria’s seaports, long plagued by congestion, regulatory bottlenecks, and corruption, are stifling the country’s trade potential and aggravating food insecurity. According to the World Trade Organization (WTO)’s Trade Policy Review, delays at ports, excessive tariffs, and overlapping regulatory roles are inflating food prices and discouraging investment in agriculture.

The Lagos Chamber of Commerce and Industry (LCCI) estimates that these inefficiencies cost Nigeria’s business community over ₦2.5 trillion annually, undermining tax revenue, job creation, and economic growth. Experts warn that the slow, costly, and often corrupt port operations could derail Nigeria’s prospects of leveraging trade agreements such as the African Continental Free Trade Area (AfCFTA).

A major setback is the impact on perishable agricultural exports, where delays significantly reduce competitiveness and profitability. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, highlighted that multiple regulatory inspections and excessive documentation impede time-sensitive exports, deterring private sector participation.

To address these challenges, the Nigerian Ports Authority (NPA) has approved 10 Export Processing Terminals (EPTs), five of which are operational, and the Nigeria Export Promotion Council (NEPC) has established 13 export warehouses to streamline logistics. These facilities aim to reduce delays by enabling pre-inspections and containerization before goods arrive at the ports.

However, experts argue that systemic reforms, including automation of processes and the reduction of regulatory redundancies, are critical. Corruption and obstructionist practices, such as intentional sabotage of automated systems by officials seeking personal gain, continue to hinder progress.
Source- Business Day

Expert Review for Agri-Food Stakeholders
The inefficiencies at Nigeria’s ports represent a significant bottleneck for the agri-food sector, particularly for exporters relying on timely delivery of perishable goods. Stakeholders must consider the following implications and recommendations:

Key Implications

1. Increased Costs and Inflation:
Inefficient port operations drive up logistics costs, contributing to food inflation and reducing the affordability of agricultural inputs and exports.

2. Export Competitiveness:
The delays and additional fees discourage private sector investment in agricultural exports, undermining Nigeria’s efforts to diversify its economy through non-oil exports.

3. Impact on Food Security:
The high cost and inefficiencies in importing agricultural inputs like fertilizers and machinery exacerbate food insecurity, as farmers face challenges in boosting productivity.

4. Missed AfCFTA Opportunities:
With AfCFTA promoting trade integration, Nigeria risks being sidelined in the regional market due to its inability to meet trade facilitation benchmarks.

Recommendations

1. Streamline Regulatory Agencies:
The government must consolidate the roles of overlapping agencies such as NAFDAC and SON to minimize confusion, save time, and reduce costs.

2. Strengthen Automation and Accountability:
Automated systems should be enforced to eliminate human interference, with strict penalties for sabotage. Transparency initiatives are vital to restore confidence among investors.

3. Leverage Export Processing Terminals (EPTs):
Full operationalization of the EPTs and export warehouses is crucial to minimize delays and ensure compliance with international trade standards.

4. Public-Private Partnerships (PPPs):
Collaborative efforts between the government and private sector can ensure long-term sustainability of port reforms. Stakeholders should advocate for dedicated funds to maintain infrastructure and technology at ports.

5. Capacity Building for Exporters:
The NEPC and other organizations must provide exporters with training on best practices in export compliance and leveraging the EPTs for smooth operations.

By addressing these inefficiencies, Nigeria can unlock its agricultural export potential, improve food security, and strengthen its position in regional and global trade networks.