Nigerian Ports Authority sustains growth trajectory in Q1

‎Nigeria’s maritime sector recorded strong operational growth in the first quarter (Q1) of 2026, with Gross Registered Tonnage (GRT) for ocean-going vessels rising by 19.5 percent to 46.75 million.

This underscores the increasing dominance of larger-capacity ships across the nation’s ports amid ongoing reforms targeted at positioning the country as a regional trade hub under the African Continental Free Trade Area (AfCFTA). ‎ ‎According to the Q1 2026 Operational Performance Review released by the Nigerian Ports Authority (NPA), the rise in vessel tonnage signals improved cargo-carrying efficiency and growing confidence among international shipping lines in Nigerian ports.

‎Total cargo throughput excluding crude oil terminals also posted strong growth during the quarter, increasing by 11.6 per cent year-on-year to 32.38 million metric tons from 29.02 million metric tons recorded in the corresponding period of 2025. ‎ ‎The report noted that the development reflects a strategic shift toward larger and more efficient vessels, driven partly by the operational impact of the Lekki Deep Sea Port and expanding trade demand. ‎ ‎The strong performance comes at a time when the federal government is intensifying efforts to modernise Nigeria’s port infrastructure, improve cargo handling efficiency and capture a larger share of regional cargo flows under AfCFTA.

Abubakar Dantsoho, ‎Managing Director of the Nigerian Ports Authority, recently said Nigeria’s ports must evolve beyond traditional limitations if the country hopes to compete effectively in a rapidly integrating African market. ‎ ‎Speaking at an industry forum in Lagos, Dantsoho said efficiency, speed, innovation and reliability would determine which countries dominate cargo flows in the new continental trade environment. ‎ ‎“The time has come for a paradigm shift in the structure of Nigeria’s economy towards the full utilisation of our marine resources. Our port system, if properly harnessed, can serve as a major driver of economic growth,” he said. ‎ ‎The NPA attributed the growth to rising trade volumes, stronger import and export activities, improved port productivity, and sustained demand for port services. ‎ ‎One of the strongest performances during the period came from outward cargo traffic, which surged by 23.7 per cent to 14.13 million metric tons, reflecting stronger export competitiveness and deeper integration into regional and global supply chains. ‎ ‎Similarly, outward laden container traffic recorded exceptional growth of 67.6 per cent, rising from 61,332 TEUs in Q1 2025 to 102,803 TEUs in Q1 2026, a performance linked to improved export logistics and terminal efficiency. ‎ ‎Vehicle traffic also emerged as a major growth area, with total vehicle units handled rising sharply by 67 per cent to 58,870 units during the quarter, compared to 35,262 units in the same period last year. ‎ ‎The report further highlighted an 83.1 per cent increase in transhipment container activity, reinforcing Nigeria’s growing relevance within regional maritime trade and logistics networks. ‎ ‎Industry analysts said the increase in transhipment activity is particularly significant because it suggests Nigeria is beginning to attract more regional cargo movement within West Africa, a critical objective as AfCFTA gradually dismantles trade barriers across the continent. ‎ ‎The maritime reforms being pursued under the administration of President Bola Ahmed Tinubu, GCFR, have centred on infrastructure upgrades, digitalisation and institutional restructuring aimed at transforming the country into a leading maritime logistics hub in Africa. ‎ ‎A major component of the reforms is the ongoing rehabilitation of the Lagos Port Complex and Tin Can Island Port following the approval and signing of the MOU for a $1 billion overhaul of longstanding infrastructure deficiencies for improved port competitiveness. ‎ ‎Minister of Marine and Blue Economy, Adegboyega Oyetola, has also disclosed that procurement processes are underway for upgrades in Warri, Port Harcourt, Onne and Calabar ports as part of efforts to ensure balanced port development nationwide. ‎ ‎In addition to physical infrastructure upgrades, the government is pushing an aggressive digitalisation agenda through the deployment of the Port Community System and the National Single Window platform to streamline cargo clearance processes, reduce delays and improve transparency. ‎ ‎Industry stakeholders believe these initiatives could significantly lower the cost of doing business at Nigerian ports while improving turnaround time and operational efficiency. ‎ ‎The government has also expanded investments in rail integration, inland dry ports, barging operations and export corridors to improve cargo evacuation and reduce congestion around port corridors. ‎ ‎Security improvements within Nigerian waters have further strengthened confidence in the sector. Nigeria has now recorded over four years without piracy incidents, a development attributed to the Deep Blue Programme and enhanced maritime surveillance systems. ‎ ‎According to the NPA, the Q1 performance demonstrates that the maritime sector is evolving into a more cargo-intensive and commercially dynamic ecosystem capable of supporting economic growth, trade facilitation and regional connectivity. ‎ ‎Despite the progress, Dantsoho recently acknowledged that Nigeria still handles only about 25 per cent of cargo traffic in West Africa despite accounting for more than 60 per cent of the region’s GDP, stressing that the country must sustain ongoing reforms to fully optimise its maritime potential. ‎ ‎“With sustained commitment to these initiatives, Nigeria’s port system will enter a new phase and emerge as a leading maritime logistics hub in Africa,” he assured.