Apapa, Tin Can ports £746 Million rehab sparks efficiency debate

2026-04-03 06:52:25

Plans by the federal government to invest £746 million to modernize two of Nigeria’s most active and strategically important ports, Apapa and Tin Can Island, have reignited debates over the country’s port strategy.

The funding, provided under the UK Export Finance Buyer Credit Facility and coordinated by Citibank, will support infrastructure upgrades and improvements in operational efficiency.

Stakeholders who spoke to Nairametrics are divided on whether upgrading these congested ports is the best approach or if newer facilities like Lekki Deep Seaport could better support Nigeria’s long-term trade growth.

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The rehabilitation aims to reduce vessel turnaround times, cut cargo dwell times, and modernize port operations through automation. However, questions remain about whether it adequately addresses underlying congestion and logistical challenges, particularly truck circulation and access roads.

What they are saying

Stakeholders offered contrasting views on the rehabilitation and its potential impact on port efficiency. The debate centers on whether to upgrade existing ports or shift focus to emerging alternatives like Lekki.

Tonami Playman, an independent transport researcher, said Nigeria should relocate major port operations to Lekki Deep Seaport to relieve congestion at Apapa and Tin Can, noting that continued investment in near-capacity ports is inefficient.
“The only way to relieve congestion at Apapa & Tincan island is to relocate their operations as their current location is a major constraint to growth & cargo throughput. Money should be directed to relocation of all port activities to Lekki, not pouring it into a location that has a fundamental capacity limit,” Playman told Nairametrics.

Abayomi Duyile, Chairman of the Apapa chapter of the National Council of Managing Directors of Licensed Customs Agents, argued that relocating a federally owned port to a private facility like Lekki is not feasible, stressing that infrastructure upgrades at existing ports are long overdue.

“There’s no way you can relocate a mother port owned by the federal government to a private operator,” he said.

Duyile further emphasized that the rehabilitation should prioritize fixing critical infrastructure, such as the comatose access roads to Tin Can Port and providing the necessary equipment and machinery for terminal operators to optimize services. He noted that without addressing these issues, modernization efforts alone would have limited impact on congestion and cargo dwell times.

Otunba Frank Ogunojemite, President of APFFLON, said the rehabilitation could reduce cargo delays, lower logistics costs, boost trade efficiency, increase government revenue, and help Nigeria regain diverted cargo from neighbouring ports.

_“My concern is that this will increase debt burden, limit local industry participation, and without fixing road, rail, and customs bottlenecks, full benefits may not be achieved.” _

However, he noted that the rehabilitation brings an economic boost if well implemented, but results depend on wider port and logistics reforms.

What the £746 million rehabilitation entails

The £746 million financing from the United Kingdom will support upgrades to Apapa and Tin Can Island ports under UK Export Finance’s Buyer Credit Facility, coordinated by Citibank.

According to government announcements, the modernization is expected to reduce vessel turnaround times to a more competitive timeline and cut cargo dwell times closer to global best practices of 3–5 days.

The project will streamline operations through automation, replacing paperwork-heavy processes with digital systems, and improve port infrastructure to handle larger vessels and higher cargo volumes.
The initiative is expected to enhance import and export clearance speed, reduce demurrage and logistics costs at the ports, increase revenue, and deliver broad economic benefits for Nigeria, the Ministry of Marine and Blue Economy has said.

The project will involve rebuilding quays and jetties, expanding container storage capacity, installing modern cargo handling equipment, upgrading port access roads, and improving coordination among regulatory agencies.

Inside port operations: why cargo clearance still faces delays

Stakeholders say cargo clearance at Apapa and Tin Can Island ports continues to face structural delays.

Obinna Nwaogu, Chief Operations Officer of Trucks Transit Parks (TTP), said, _“Trucks face delays at multiple points, including terminal loading and discharge. Congested yards and manual documentation slow container movement.” _
He added_, “Empty container depots are frequently congested. Customs processes are hampered by limited automation and multiple agency approvals. Cargo discrepancies also prolong clearance.” _
Nwaogu noted, “Unauthorized truck activities along port corridors, like bypassing schedules or roadside parking, worsen congestion and reduce efficiency.”
He also highlighted infrastructure gaps: _“Limited loading areas, restricted yard space, and insufficient cargo handling equipment amplify delays. Breakdowns in scanning or weighbridge systems, poor roads, drainage issues, and multiple checkpoints further slow truck movement.” _

Otunba Frank Ogunojemite, President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), said,_ “Cargo dwell time, averaging 18 days, is caused by bureaucracy, poor agency coordination, multiple inspections, congestion, and weak infrastructure.” _

He added, “_These challenges raise the cost of doing business and weaken Nigeria’s competitiveness in regional trade.” _

Okechukwu Anthony Onyebuchi, Operations/Documentation Manager at Fortune Global Shipping, identified operational inefficiencies such as poor coordination among shipping lines, port operators, and logistics companies, delays in documentation processing, and limited working hours at terminals.

Onyebuchi added that external factors, including weather events, strikes, and security challenges, further compound delays.

How experts say Apapa and Tin Can ports can achieve real operational gains

Stakeholders say the £746 million Apapa and Tin Can ports rehabilitation must go beyond physical upgrades to improve efficiency.

Duyile, Chairman of Apapa’s Licensed Customs Agents, said the federal government should procure scanners directly rather than leaving operators to cover costs.

_“Leaving terminal operators to acquire scanners raises charges and security concerns,” _he said.

He also recommended full rehabilitation of South-South ports like Port Harcourt, Calabar, and Warri, offering incentives to attract shipping lines. He suggested pausing further Lagos port development, noting ongoing projects at Lekki, Snake Island, and the planned Badagry port.

From the trucking perspective, Chief Operations Officer of Trucks Transit Parks (TTP), Obinna Nwaogu, said a comprehensive rehabilitation could significantly improve port efficiency. He explained that upgraded layouts and infrastructure could expand and create dedicated truck lanes, improve loading and offloading bays, and better manage internal traffic within terminals.

He added, “_Modern scanning equipment and streamlined gate processes would reduce delays, while improved container stacking and yard planning would ease congestion. Trucks could dispatch faster and handle higher cargo volumes.” _
Nwaogu also highlighted the need for rehabilitated quay structures to accommodate larger vessels, reducing the number of ship calls required to move the same volume of cargo.
He stressed that expanding port access roads and integrating digital management platforms, such as Ètò, is critical. Investment in CCTV, solar-powered lighting, and traffic management systems was also cited as essential to smooth operations.

President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Ogunojemite, emphasized that while infrastructure improvements are necessary, meaningful reductions in cargo dwell time require systemic reforms.

“Full automation, a functional single-window system, 24-hour port operations, improved infrastructure, and stronger coordination among government agencies are essential,” Ogunojemite said.

He warned that without addressing these underlying inefficiencies, the benefits of the £746 million rehabilitation may remain limited. Nwaogu echoed this view, noting that combining physical upgrades with broader operational reforms could significantly reduce congestion, improve truck turnaround, and enhance overall port efficiency.

What you should know

The 2025 Operational Performance Report of the Nigerian Ports Authority (NPA), presented by Managing Director Abubakar Dantsoho, shows total cargo throughput at Nigerian ports rose 24.8% to 129.3 million metric tonnes. Container traffic also increased to over 2.1 million twenty-foot equivalent units (TEUs).

Lekki Deep Sea Port handled the largest share of cargo, accounting for 40.6% of national throughput. Onne Port followed with 19.1%, while Apapa Port managed 16.7%, maintaining their roles as key gateways for Nigeria’s trade.

Tin Can Island recorded the highest number of ship arrivals in 2025, representing 22.7% of vessel calls. Overall, total ship calls grew nearly 12% to 4,477 vessels.
Vessels at Lekki and Onne were generally larger, with average Gross Registered Tonnage (GRT) of 55,712 and 53,022 respectively. Apapa averaged 33,251 GRT, Tin Can Island 36,909 GRT, and Delta Ports 17,414 GRT.
In March 2026, MSC Group signed a 45-year concession with Nigerdock to develop a container terminal at Snake Island Port in Lagos, also finalizing EPC contracts with ITB Nigeria Ltd. and DEME Group.

The terminal will handle deep-sea vessels and barges efficiently, featuring a 910-metre quay with Ship-to-Shore (STS) and Mobile Harbour Cranes (MHC), and a 30-hectare container yard with space for future expansion using hybrid Rubber-Tired Gantry (RTG) cranes.

Initial dredging will reach 16.5 metres Chart Datum, with the potential to increase to 18 metres for larger vessels. The terminal is designed for scalability to support future growth in cargo volumes.

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