The Nigerian Shippers’ Council (NSC), now transitioning into the Nigerian Port Economic Regulatory Agency (NPERA), has emphasised that equitable cargo distribution across Nigerian ports should be driven by competition, efficiency and transparency rather than administrative or politically imposed quotas.
This position was articulated in a paper presented at the Annual General Meeting of the League of Maritime Editors, which argued that cargo follows commercial logic and that importers and shipping lines make port choices based on proximity to markets, port charges, vessel accessibility, terminal efficiency, customs processes, road and rail connections, security, cargo handling capacity and overall logistics costs.
The paper, titled “The Role of the Nigerian Port Economic Regulatory Agency (NPERA) – (Defunct Nigerian Shippers’ Council) in Ensuring Equitable Cargo Distribution Across Nigerian Ports,” noted that Nigeria’s port system has long faced a structural challenge: the concentration of cargo in a limited number of ports, particularly the Lagos port complex, despite the existence and development of other seaports and emerging port infrastructure across the country.
This concentration, the paper said, has consequences beyond congestion at the ports. It places pressure on road infrastructure, increases logistics costs, contributes to cargo dwell time, raises the cost of doing business and limits the economic benefits that could accrue to other port locations and their surrounding communities.
The emergence of facilities such as Lekki Deep Sea Port, alongside the established ports in the Eastern and Western regions, creates an opportunity for Nigeria to develop a more balanced and competitive port system. However, the paper stressed that infrastructure alone cannot guarantee equitable cargo distribution. What is required is a regulatory and commercial environment in which shipping lines, cargo owners, terminal operators, freight forwarders and other stakeholders can make rational choices based on efficiency, cost, connectivity and service quality.
The paper described the Council as Nigeria’s Port Economic Regulator and a trade-facilitation agency, with responsibilities including promoting fair trade practices, protecting shippers’ interests, regulating economic activities at the ports, encouraging competition, monitoring service standards and helping to create a predictable environment for trade.
The central argument of the paper is that equitable cargo distribution should not mean administrative or politically imposed sharing of cargo among Nigerian ports. Rather, it should mean creating a competitive, transparent and efficient port environment in which cargo can flow to the ports best positioned to handle it, while preventing discriminatory practices, artificial restrictions and market distortions that favour one port or corridor over another.
The paper noted that equitable cargo distribution is sometimes misunderstood as a directive that shipping lines or importers must distribute a fixed percentage of cargo among Nigeria’s ports—an approach it described as problematic.
“Cargo follows commercial logic. Importers consider proximity to markets, port charges, vessel accessibility, terminal efficiency, customs processes, road and rail connections, security, cargo handling capacity and overall logistics costs. Therefore, the objective should be competitive cargo distribution rather than forced cargo allocation,” the paper stated.
An equitable port system, it said, should ensure that no port is deliberately disadvantaged by discriminatory commercial practices; shipping lines have reasonable freedom to call at ports based on commercial and operational considerations; importers and exporters have genuine choices among viable ports; port charges and service standards are transparent and predictable; infrastructure investments are matched with cargo-generating economic activity; road, rail, inland waterways and dry-port connections support the movement of cargo beyond the seaports; and ports compete on service quality, efficiency and cost rather than regulatory privilege.
One of the most important ways the NSC can promote equitable cargo distribution, the paper said, is by strengthening competition among ports and port service providers. The Council’s statutory regulatory functions expressly include encouraging competition and guarding against monopoly and abuse of dominant market positions.
The paper explained that cargo concentration can become self-reinforcing: a port with more cargo attracts more shipping services; more shipping services attract more cargo; higher cargo volumes encourage investment in terminals and logistics services, which further increases the port’s attractiveness. The reverse can also happen, a port with insufficient cargo may experience fewer vessel calls, weaker commercial incentives, inadequate ancillary services and declining attractiveness to cargo owners.
“The NSC can help break this cycle by ensuring that competing ports operate under fair economic and regulatory conditions. The goal should be to make Nigerian ports compete for cargo through: cost plus efficiency plus connectivity plus reliability plus service quality. That is a healthier basis for cargo distribution than administrative cargo quotas,” the paper stated.
The paper identified cost as one of the most important determinants of port choice, noting that the NSC’s role in providing guidelines for tariff setting and regulating economic activities is therefore directly connected to cargo distribution.
If the cost of using one port is significantly higher than comparable ports without a corresponding improvement in service quality, cargo owners will have little incentive to use that port. Conversely, where charges are transparent and services are efficient, ports become more commercially attractive.
The paper said the Council must therefore continue to scrutinise terminal handling charges, shipping line charges, storage and demurrage-related costs, documentation charges, cargo examination-related costs, inland transportation costs linked to port use, and other economic charges that influence port choice.
For years, the Lagos port complex has carried a disproportionate share of Nigeria’s maritime cargo, the paper noted, creating both commercial advantages and systemic vulnerabilities.
The concentration of cargo in Lagos has contributed to congestion and placed enormous pressure on the Lagos-Ogun industrial corridor and the road network serving the ports. The opening of Lekki Deep Sea Port provides additional capacity and an opportunity to diversify cargo flows, although infrastructure must be supported by efficient hinterland connectivity and streamlined port processes.
“The challenge, therefore, is no longer simply to build more ports. Nigeria must make its existing and emerging ports commercially viable. A multi-port strategy requires deliberate attention to the competitive position of Eastern and Western ports, including the ports in Rivers, Calabar and Delta and other emerging ports with the potential to serve regional cargo markets,” the paper said.
The paper said the development of Eastern ports is particularly important from the perspective of balanced national development, noting that ports are not merely places where ships berth but economic ecosystems capable of generating employment, logistics businesses, warehousing, manufacturing, transportation and investment.
When cargo is concentrated in one geographic region, the economic multiplier effects of port activity are similarly concentrated. Greater utilisation of Eastern ports can therefore support economic development in the South-East, South-South and neighbouring regions, while reducing unnecessary movement of cargo through Lagos.
But this requires more than exhortations to shipping lines to use Eastern ports. There must be commercially credible reasons to do so, including navigational accessibility, adequate channel depth, modern cargo-handling equipment, reliable customs and regulatory processes, efficient terminal operations, good road and rail connections, security, competitive charges, availability of shipping services, and efficient connections to inland markets.
The paper also highlighted the role of inland dry ports as a tool for cargo distribution and decongestion, noting that dry ports can reduce pressure on coastal terminals by bringing port services closer to cargo owners in inland markets. However, dry ports will only achieve their full potential if they are properly integrated with seaports, railways, highways, inland waterways, customs systems and digital cargo documentation.
On digitalisation, the paper said the NSC has identified the digitalisation and automation of port processes as a priority, including cargo release and manifest submission, with the objective of reducing cost and timelines, minimising unnecessary human contact with cargo and improving service delivery.
“This matters for cargo distribution, because a port’s attractiveness increasingly depends on the speed and predictability of its processes. If a cargo owner can complete documentation, receive approvals, track cargo and process release electronically, the physical location of the port becomes less of a barrier,” the paper stated.
The paper made several recommendations for the NSC to enhance its role in promoting equitable cargo distribution. It said the NSC should develop and regularly publish a port performance scorecard covering all major Nigerian ports, measuring cargo throughput, vessel turnaround, berth productivity, cargo dwell time, truck turnaround, port charges, customs processing time, cargo evacuation capacity, rail connectivity, inland waterway connectivity and customer satisfaction.
It said Nigeria needs a coordinated national strategy for cargo distribution based on port specialisation and comparative advantage, identifying the commodities, vessel types, geographical markets and logistics corridors best suited to individual ports.
The paper said the NSC should continue to engage shipping lines to ensure that commercial practices do not unnecessarily restrict port choice. It also said cargo cannot be distributed equitably if the inland evacuation system remains concentrated around roads, adding that the development of rail-linked and barge-linked cargo corridors should be treated as part of port development.
It said Nigeria should have a transparent digital dashboard showing port performance, allowing shippers to compare ports based on measurable indicators.
The paper emphasised that the NSC cannot achieve equitable cargo distribution alone, calling for collaboration among the Nigerian Ports Authority, Nigerian Customs Service, shipping lines, terminal operators, state governments, freight forwarders, shippers and the maritime media.
It particularly highlighted the role of the maritime media, urging journalists and editors to move beyond reporting port congestion and regulatory disputes to providing the public with comparative information about port performance.
“A better informed maritime public will produce better accountability,” the paper stated.
The paper concluded that equitable cargo distribution cannot be achieved through regulation alone but requires a combination of competitive ports, efficient terminals, transparent charges, reliable shipping services, modern customs processes, digital systems, effective rail and inland-waterway connections and a strong regulatory framework.
“The objective should not be to force cargo away from one port and towards another. Rather, Nigeria should create a port system in which no port is artificially favoured, no port is unnecessarily disadvantaged, and every viable port has the opportunity to compete for cargo on the basis of efficiency, cost, capacity and service quality. This is the essence of trade facilitation,” the paper said.