Seven proposed deep-seaports remain incomplete as investor confidence wanes amid infrastructure deficits and regional competition
Nigeria’s bid to reclaim its position as West and Central Africa’s premier maritime gateway is unraveling, with seven planned deep-seaports frozen due to investor reluctance and a staggering $14 billion (N19 trillion) funding shortfall.
Despite the operational Lekki Deep Seaport, major projects including Badagry, Ibom, and Bonny remain incomplete. Investors cite insufficient cargo guarantees and poor hinterland connectivity as primary deterrents. Meanwhile, neighboring ports in Ghana, Togo, and Benin Republic continue capturing Nigeria’s maritime traffic by accommodating larger vessels that Nigerian facilities cannot handle.
Industry analysis reveals that each deep-seaport requires at least $2 billion—a capital requirement beyond domestic financing capabilities.
Dr. Abubakar Dantsoho, Managing Director of the Nigerian Ports Authority (NPA), explained that investor appetite has dried up due to poor returns following cargo diversions to competing nations. The scale of investment required, coupled with dependence on long-term capital and exposure to global market fluctuations, exceeds the capacity of local banks and government resources.
Dantsoho noted that the Lekki Deep Seaport took 14 years and $1.5 billion in Chinese financing to complete. By contrast, the Badagry Deep Seaport remains stalled after nearly six decades of planning, with funding requirements estimated at $3.7 billion.
“No Nigerian entity can provide $3.7 billion. Such capital must come through international partnerships and private sector participation,” Dantsoho stated.
Nigeria currently loses approximately 60 percent of West Africa’s maritime trade to ports in Tema (Ghana), Lomé (Togo), Cotonou (Benin Republic), and Abidjan (Côte d’Ivoire). This cargo diversion, combined with multiple abandoned port projects nationwide, has generated concern among maritime professionals, investors, and policy analysts.
Industry experts emphasize that port viability extends beyond coastal geography, depending on six critical factors: intermodal transport connectivity, cargo generation capacity, port governance and fee structures, funding and concession frameworks, depth and dredging maintenance, plus regional competition and transhipment capabilities. Nigeria’s failure to address these fundamentals continues deterring investment.
Mfon Usoro, National President of the Chartered Institute of Logistics and Transport (CILT) Nigeria, revealed how cargo uncertainty has blocked foreign investment in establishing a national shipping fleet. Singapore’s Pacific International Lines offered 40 percent equity but demanded proof of guaranteed cargo before committing.
She noted that substantial Nigerian-bound cargo is discharged at Cotonou’s port, which offers more business-friendly policies, effectively transforming Nigeria into a transhipment destination receiving smaller vessels from neighboring countries.
The Lekki deep port, expected to generate $200 billion in government revenue over its concession period, currently operates at only 20 percent of its projected 1.2 million TEU capacity, according to Marine and Blue Economy Minister Adegboyega Oyetola and Port Deputy Managing Director Daniel Odibe.
Nigeria’s established ports—Apapa, Tincan, Onne, Warri, and Calabar—suffer from aging infrastructure, shallow depths, and inefficient cargo evacuation systems. Operational inefficiencies include manual terminal operations, congestion, extended voyage times, and lengthy ship dwell times. These facilities average seven-day vessel turnaround times compared to one or two days in developed nations, according to the National Policy on Marine and Blue Economy.
Investigation by The Guardian found that Badagry’s deep port project, structured across four phases, shows minimal progress one year into its second phase—implementation and financial partner acquisition—despite Lagos State Government assurances of 2025 completion.
Dantsoho acknowledged Nigeria’s lost advantage: “Had Badagry port been constructed 16 years ago, Nigeria would have surpassed Tema and Cotonou.” Investment delays enabled competitors to dominate trade routes.
Other stalled projects include the $4.6 billion Ibom deep seaport (which received $2.016 billion Federal Executive Council approval in 2020), the $1.3 billion Ondo port, $462 million Bonny deep seaport, $3 billion Agge deep port, and Bakassi port. While Dangote Group President Aliko Dangote initiated development of the Olokola deep seaport, progress remains sluggish.
Dr. Eugene Nweke, Head of Research at Sea Empowerment and Research Centre (SEREC), observed that while Lekki has achieved operational status, other approved projects remain incomplete due to funding constraints, weak hinterland connectivity, overlapping investment priorities, and insufficient commercial justification.
Nweke emphasized that deep-seaport viability requires efficient road, rail, and inland waterway connections, plus alignment with regional industrial clusters, agricultural zones, oil and gas sectors, and manufacturing corridors for cargo generation. He also cited excessive levies, opaque clearance procedures, and multiple charges as deterrents to shippers and investors.
Rather than pursuing simultaneous development of multiple deep-sea ports, Nweke advocated for a Prioritisation Matrix Framework—a structured methodology ranking projects by commercial readiness, regional demand, connectivity, environmental sustainability, and funding feasibility.
He suggested converting underutilized deep-sea port sites into Maritime Service Hubs, including floating ship repair yards, bunkering facilities, dry docks, and offshore logistics bases. This approach would reduce government capital burdens, promote private participation through modular public-private partnerships, create skilled employment in shipbuilding and marine engineering, and strengthen Nigeria’s regional maritime service role within the Gulf of Guinea.
Nweke recommended adopting a Cluster-Based Port Development Strategy, incentivizing credible investors through transparent concession frameworks, reassessing all pending deep-seaport licenses, retaining those with feasible demand, and converting others to alternative maritime applications.
Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), cautioned against government-led financing of new ports, arguing that such capital-intensive ventures are best driven by private investors. He advised prioritizing improvements to existing ports like Lekki Deep Seaport before expansion.
“Government investment in projects with uncertain commercial viability makes little sense. Investors will only commit when existing seaports operate efficiently and attract sufficient cargo,” Yusuf stated.
He urged authorities to investigate and resolve factors causing persistent cargo diversion to Cotonou, Lomé, and Ghanaian ports, arguing that unaddressed inefficiencies will continue undermining maritime investments.
“Without competitive ports and consistent cargo traffic, attracting credible investors to new port projects will remain difficult,” he added.
Taiwo Fatomilola, National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria (AREFFN), acknowledged strong commercial potential for deep seaports in Delta, Badagry, and other zones, but blamed budget inflation and corner-cutting for impeding progress.
“Corruption remains our greatest obstacle. Every port project begins with a budget, but cost inflation for personal gain, work delays, and subsequent funding claims stall progress. With discipline, all those ports would be completed and operational,” Fatomilola stated.
He maintained that completing deep seaports across various regions would stimulate trade, attract investments, and reduce foreign port dominance in handling Nigerian-bound cargo, but emphasized this requires transparency, proper policy implementation, and eliminating corruption in project execution.
Dr. Oluwasegun Musa, Executive Chairman and Chief Consultant of Widescope International Group/Global Transport Policy (GTP), emphasized that developing additional ports would enhance competition, attract investment, and create economic opportunities throughout the maritime value chain.
“Maritime business thrives with multiple ports, providing options. Current congestion and high charges in Nigeria drive investors to neighboring ports. More deep-seaports would offer importers and exporters viable domestic alternatives,” Musa explained.
He advised that port viability requires strong policy frameworks supported by adequate road networks, modern infrastructure, and automated clearance processes. Increased port development would encourage shipping lines to designate Nigeria as a hub while spurring job creation, technical skill transfer, and foreign investment inflows—critical factors for reclaiming Nigeria’s maritime competitiveness in West Africa.
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