The Federal Government has announced a proposed $1 billion investment for rehabilitating the nation's ports, as revealed by Minister of Marine and Blue Economy, Gboyega Oyetola, during an address to the House of Representatives Committee on Privatisation in Abuja. He highlighted the inadequate infrastructure upgrades, hindering efficient operations and preventing the full benefits of port concessions from being realized.

Oyetola emphasized the ministry's commitment to preventing complete port shutdowns during the rehabilitation process. He stressed the importance of any further port concessions aligning with the vision to modernize and reconstruct deteriorating port infrastructures for effective and competitive performance.

The minister recalled the ambitious port reforms undertaken by the Federal Government in 2005/2006, aimed at revitalizing Nigeria's maritime sector. These reforms led to comprehensive restructuring of port infrastructure and the creation of 26 terminals across six port complexes.

Under the adopted landlord model, the Nigerian Ports Authority retained ownership and administration of port lands while delegating operational responsibilities to private operators. Key to the success of these reforms were the Lease Agreements signed between the NPA and Private Terminal Operators, providing a stable framework for private investment and operational management.

Oyetola acknowledged challenges such as expired leases, budgetary constraints, and failure to meet certain lease agreement obligations. He mentioned that terminal operators have requested the renewal of concession agreements, but the government has not fully benefited from port concessions due to inadequate infrastructure improvements.

Reports from The World Bank and Crown Agents UK highlighted the grossly inadequate investments in Nigerian ports over the past 15 years, resulting in decreased port productivity. They also scrutinized the absence of a maintenance regimen aimed at preserving asset value, leading to decreased port productivity over time.

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