Group warns of uncertainties in maritime

A group, SEREC, at the weekend warned that uncertainties around the renewal of terminal operators’ licences could undermine port efficiency, weaken investor confidence and disrupt trade flows.

This activity account for over 80 per cent of the country’s international trade.

The advocacy group, in a policy brief on the nation’s maritime sector, also noted that the maritime economy risked heightened investment shortfall and high cost of trading if the ongoing policy review of port concession agreements by the House of Representatives is not handled with speed, clarity and transparency.

While acknowledging that legislative oversight is both legitimate and necessary, the maritime research body stressed that prolonged delays or unclear renewal processes could trigger unintended economic consequences.

“At a time when Nigeria is seeking to stabilise its economy and attract credible foreign investment, regulatory certainty in the maritime sector is non-negotiable,” SEREC stated.

Nigeria’s port system remains the backbone of the country’s external trade, serving as the main channel for imports, exports, customs revenue and industrial supply chains. According to the group, any instability within the concession framework directly affects federal government revenue, Customs collections, import-export efficiency and the final cost of goods in the domestic market.

The port concession programme, supervised by the Nigerian Ports Authority, was originally structured to attract private capital, modernise port infrastructure and improve operational efficiency. However, SEREC warned that uncertainty surrounding concession renewals could stall those objectives.

From an investment standpoint, the policy brief noted that terminal operators facing unclear timelines are unlikely to commit fresh capital for equipment upgrades or infrastructure expansion, leading to an investment freeze across the port system.

Operationally, it warned that inefficiencies arising from uncertainty could increase vessel waiting times, demurrage charges and freight rates—costs that are often passed on to Nigerian consumers and businesses, fuelling inflationary pressure.

In a competitive global investment environment, the group added, regulatory unpredictability sends a negative signal to foreign investors assessing Nigeria against other regional port hubs.

“There is also the risk of legal disputes,” the brief cautioned, noting that poorly managed transitions could expose the government to contractual disagreements or international arbitration.

SEREC urged the House of Representatives to ensure that its review strengthens the maritime sector rather than weakening investor confidence.

The organisation outlined six key principles it believes should guide the concession review process, including immediate policy clarity on renewal timelines and evaluation criteria; performance-based renewals; transparent and structured assessments; protection of contractual sanctity; avoidance of operational vacuums at terminals; and oversight that reinforces, rather than destabilises, the port economy.

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According to SEREC, predictability and consistency in port governance are critical to sustaining Nigeria’s competitiveness as a maritime and logistics hub in West and Central Africa.

“The review of port concessions must enhance transparency and accountability while preserving Nigeria’s reputation as a predictable and reliable investment destination,” the brief concluded.