FG Proposes $1b For Rehabilitation Of Ports – Oyetola

The Federal Government has revealed that it has proposed a $1bn investment for the rehabilitation of the nation’s ports.

The Minister of Marine and Blue Economy, Gboyega Oyetola gave the revealation while addressing the House of Representatives Committee on Privatisation in Abuja.

He noted that the government has not fully reaped the benefits of port concessions due to inadequate infrastructure upgrades, with many ports nearing the end of their lifespan, hindering efficient operations.

The Minister, who was Represented by the Permanent Secretary, Oloruntola Michael, emphasised that during the rehabilitation process, the ministry would strive to prevent complete port shutdowns.

He noted that the position of the ministry is that any further concession at the ports should be predicated on the larger vision and desire to reinvest in the ports and modernise, reconstruct the deteriorating port infrastructure for effective, efficient and competitive performance.

“The investment required to achieve this is estimated in excess of $1bn. It is therefore expedient to ensure that any step to be taken is fitted within the long-term re-investment plan.

“The dream to achieve a modernised port is paramount and sacrosanct. The concession agreement to be entered into with any investor or operator must align with this vision. In this regard, the Nigerian Ports Authority is committed to the process and is expected to actualise this vision.

“The agency’s review will determine the approximate value of investment to be made for the ports and corresponding tenor to be granted to investors/operators.

“During the course of rehabilitation the ministry would ensure the ports are not completely shut down”.

Oyetola noted that in 2005/2006, the Federal Government embarked on ambitious port reforms aimed at revitalising Nigeria’s maritime sector.

The objectives were clear: to bolster operational efficiency, increase productivity, boost government revenue, attract investment, and facilitate technology transfer.

The reforms led to a comprehensive restructuring of the nation’s port infrastructure. The six port complexes in Lagos, Port Harcourt, Calabar, Onne, and Warri underwent a significant transformation, with the creation of 26 terminals.

Oduyemi Odumade, Edited By Grace Namiji