The Shipping Correspondents Association of Nigeria (SCAN) has expressed concern over delay in the renewal of port concession agreements in Nigeria, warning that the situation poses risks to the Maritime Sector.

SCAN, which made the plea in a statement signed by its President, Moses Ebosele, on Sunday in Lagos, noted that the delay could affect the nation’s economic stability.

He described the delay as a troubling development that undermined investor confidence, disrupted operational certainty, and threatened the gains recorded in port reforms over the years.

Mr Ebosele said the main seaport concession agreements in Nigeria were signed in 2006, following a port reform exercise that began in 2004.

He said that the Nigerian Ports Authority (NPA) handed over various port terminals to private terminal operators under a landlord model between 2005 and 2006, with 2006 being the primary year of full implementation.

Mr Ebosele recalled that many initial agreements had durations ranging from 10 years to 25 years.

“Many of these agreements expired around 2021 and 2022. Port concessions are the backbone of efficiency and private sector participation in Nigeria’s maritime industry.

“Any delay in their renewal sends the wrong signal to both local and international investors who depend on policy consistency and contractual stability,” Mr Ebosele said.

Mr Ebosele highlighted several disadvantages associated with the prolonged delay, noting that uncertainty over concession renewals discouraged further investment in port infrastructure and technology upgrades.

“Operators are less inclined to commit resources when their contractual future are unclear. This stagnation directly affects productivity, turnaround time, and service delivery at our ports,” he said.

He further explained that the delay could lead to revenue losses for the government, adding that when port operations are hampered by uncertainty, efficiency drops, and also revenue.

“This is a sector that contributes significantly to national income, and any disruption has far-reaching fiscal implications,” Mr Ebosele said.

The SCAN president also warned of potential job losses and industrial unrest.

“Thousands of Nigerians depend on port-related activities for their livelihoods. Prolonged delays in concession renewals can trigger layoffs, contract disputes, and tension within the workforce.

“On the broader economic impact, inefficiencies at the ports inevitably translate to higher costs of goods and services.

“Our ports are critical gateways for trade. Any slowdown or inefficiency increases the cost of doing business, which is ultimately passed on to Nigerian consumers,” he said.

Mr Ebosele urged the Federal Government and relevant authorities to act decisively, to expedite the renewal process without further delay. 

(NAN)