Nigeria Could Lose Trade Deals Without Modern Ports, APM Terminals Warns

Nigeria risks losing significant trade and economic opportunities unless it sustains investment in modern port infrastructure, efficient cargo evacuation and stronger public-private collaboration. Koen De Backker, chief executive officer of APM Terminals Nigeria, gave the warning at the 32nd Nigerian Economic Summit (NES #32) in Abuja.

De Backker said efficient ports are critical to facilitating international trade, cutting logistics costs, improving business productivity and creating wealth. He argued that Nigeria must modernise its ageing port infrastructure to support its economic growth ambitions.

Ports as trade enablers

Speaking on the role of ports in economic development, De Backker said Nigeria's ability to compete in international trade depends largely on how efficiently its port system moves cargo through the supply chain.

"Our job is to facilitate trade, to be an enabler for cargo to move in and out of the port, and to create wealth and prosperity for the population of Nigeria," he said.

He identified capacity constraints and prolonged container dwell time as major challenges. Cargo that stays too long inside terminals limits the capacity available to receive and process incoming shipments, he explained.

De Backker said improving cargo evacuation through alternative transport systems, particularly rail and barging, would ease pressure on roads, free up terminal capacity and speed up the movement of goods.

Ibadan logistics centre as a model

He cited APM Terminals' logistics centre in the Ibadan area as an example of how investment in alternative cargo transport can improve efficiency. At the facility, export cargo is consolidated and stuffed into containers before being moved by rail to the port terminal, reducing dependence on road transport.

De Backker also called for sustained investment in modern port infrastructure, noting that technology, specialised expertise and private sector participation are essential to expanding capacity and improving operations.

He said private sector involvement should not be seen only as privatisation. It should be viewed as a chance to professionalise port infrastructure, introduce modern technology and bring in the technical expertise needed to improve service delivery.

Customs collaboration cuts dwell time

De Backker stressed that collaboration between terminal operators, government agencies, the Nigeria Customs Service and clearing agents is needed to tackle operational bottlenecks and make Nigerian ports more competitive.

Using cargo scanners as an example, he said collaboration with Customs had allowed containers to be scanned instead of relying only on physical examination. That helped reduce import container dwell time from 18 days to 14 days in the case discussed, improving cargo availability and cutting delay costs.

Vice President Kashim Shettima, who represented President Bola Ahmed Tinubu at the summit, said productivity was key to turning economic reforms into better living standards. "Our pursuit of prosperity demands greater productivity from every worker, enterprise, and investment," he said.

Shettima said the Federal Government would keep working to reduce regulatory bottlenecks, strengthen transparency and policy predictability, and expand access to finance for businesses.

Olaniyi Yusuf, chairman of the Economic Summit Group, said the NES #32 theme, 'Growth That Works: Delivering Jobs, Productivity and Shared Prosperity', reflects the need for growth to translate into tangible value and better living standards. He said the next phase of reforms should focus on reducing production costs, providing reliable infrastructure, encouraging productive investment and improving the effectiveness of public expenditure.

For importers and exporters, faster cargo evacuation and shorter dwell times mean lower port charges and quicker turnarounds. Those costs feed directly into the price of goods in Nigerian markets.