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FG to cut cost of doing business in Nigerian ports by 25% with National Single Window

by Boyo Akomo
January 28, 2025
in Economy, Maritime
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WorldStage Newsonline–  The Federal Government of Nigeria has announced plans to implement the National Single Window (NSW) to reduce the cost of doing business in Nigerian ports by at least 25 per cent.

The Minister of Marine and Blue Economy, Mr Adeboyega Oyetola who disclosed this at a stakeholders’ forum on the establishment of the NSW in Lagos on Tuesday said that the implementation of NSW could enhance efficiency, therefore reducing these costs by at least 25 per cent.

The  World Bank had said that the cost of doing business at Nigerian ports could be up to 40 per cent.

This is higher than what is obtained in some West African countries and due to delays and administrative bottlenecks, leading to an estimated annual revenue loss of N2.5 trillion within the business community.

“By streamlining operations, improving transparency, and minimising delays, the system not only drives cost savings, but also strengthens overall trade facilitation.

“The cumulative impact across all areas include reduced costs, enhanced efficiency and greater transparency, ultimately contributing to the overall ease of doing business,” he said.

Oyetola, however, stated that the federal government had been prioritising multimodal connectivity to boost trade and reduce transportation cost.

According to him, the present administration is advancing multimodal connectivity by improving road, rail and inland waterway links to and from the ports.

The minister said that these improvements were targeted at reducing transportation costs, enhancing logistics and boosting trade.

Oyetola said that the ministry, in collaboration with the Lagos State Government, cleared the age-long Apapa – Tincan – Mile 2 traffic for landside operations and provided tugboats, mooring boats, pilot cutters, bollards, and fenders across all port locations for effective seaside operations.

“We maximised crane productivity and ensured a reduced transit time for vessels and trucks. These led to a reduction in both the vessel and truck turn-around times.

“The vessel turn-around-time went down from an average of seven days to an average of  five days, while truck turn-around-time went from an average of 10 days to a few hours.

“However, we are not resting on our oars, as our ultimate goal is to make Nigeria the hub of maritime in West Africa,” he said.

He also added that the ministry plans to revamp existing ports, with Apapa and Tin Can Island Ports as pilot projects, pointing out that the modernisation would address the aged facilities, nearing the end of their economic lifespan, which would enhance hinterland connectivity.

“We are also encouraging private-sector participation in developing greenfield ports and other infrastructure projects. Additionally, the NPA has acquired two state-of-the-art tugboats to strengthen its fleet, with plans to procure more marine crafts to boost operational efficiency,” Oyetola said.

He also stated that the ministry had commenced a strategic plan and modality by engaging its stakeholders on how best to establish a National Flag Carrier through a Private Public Partnership (PPP), noting that the initiative aims to generate employment, reposition the maritime sector and provide revenue streams for the government.

“Furthermore, arrangements for the disbursement of the Cabotage Vessel Financing Fund (CVFF) are being finalised to support the development of the shipping sector,” he added.

According to him, the implementation of the NSW project is a vital initiative to enhance trade facilitation in Nigeria.

The minister explained that the initiative would undoubtedly raise awareness and enlighten participants on the benefits of NSW as the Government continues to improve trade efficiency for the collective economic prosperity of all Nigerians.

“Today, we convene as partners in progress to explore how the implementation of the National Single Window system can streamline trade facilitation and catalyse the growth of our blue economy.

“The executive decision to implement the National Single Window system alongside the Port Community System (led by the Ministry of Marine and Blue Economy through the Nigerian Port Authority) marks a pivotal step.

“It demonstrates the government’s commitment to modernising trade processes and maximising the utilisation of our marine resources.

“Nigeria’s marine and blue economy represents an untapped gold mine of opportunities. It encompasses a vast spectrum of activities—from maritime shipping and fisheries to renewable energy and coastal tourism,” he added.

He cited that with an expansive coastline of 853 kilometers and a maritime area of over 46,000 square kilometers, Nigeria is strategically positioned to leverage these resources for sustainable economic growth.

“The marine and blue economy holds immense potential to contribute significantly to our GDP, create thousands of jobs, and drive regional and global trade.

“Despite its immense potential, the marine and blue economy faces challenges such as inefficiencies in port operations, bureaucratic obstacles and insufficient coordination among stakeholders, which have impeded its growth.

“Addressing these challenges requires an efficient, integrated, and secure logistics ecosystem—a goal that the National Single Window system is poised to enable,” he stressed.

The minister noted that the NSW initiative is a pioneering cross-government system, designed to streamline trade facilitation.

“It simplifies trade processes by enabling stakeholders to seamlessly coordinate trade-related transactions across multiple government agencies through a unified electronic platform.

“This digital transformation eliminates redundancies, reduces processing times, and ensures seamless coordination among government agencies and private sector actors.

“In essence, it is the bedrock for efficiency and competitiveness in global trade. Leveraging the implementation of a National Single Window for Nigeria in the trade industry, it aligns perfectly with our Renewed Hope Agenda,” he added.

Also, the Managing Director of Nigerian Ports Authority, Dr Abubakar Dantsoho, said that the implementation of NSW interconnects all stakeholders  in foreign trade and enables them to perform trade procedures on one platform.

He explained that it provides a comprehensive online environment for all governmental and business users such as importers, exporters, commercial banks, carriers, Customs, ministries and other government agencies to perform trade operations.

He said the single window operation is the global trade best practice for the electronic exchange of information relating to over 500 million TEU movements and billions of tonnes of cargo for sea, air and land transport modes.

“This concrete move by His Excellency, President Bola Ahmed Tinubu, to implement the NSW in Nigeria is pivotal to deepening the competitiveness of our Ports and position the good people of Nigeria to reap greater benefits from global trade.

“The purpose of the Port Community System (PCS) is primarily for Nigeria to comply with the dictates of the International Maritime Organisation (IMO), Convention on Facilitation of International Maritime Traffic (FAL).

“Its main objectives are to prevent unnecessary delays in maritime traffic, to aid cooperation between governments, and to secure the highest practicable degree of uniformity in formalities and other procedures,” he noted.

The minister noted that the NPA had been enlisted as the technical guidance of the IMO for the deployment of the Port Community System (PCS), which is the precursor to the NSW.

He further explained that upon the fulfillment of the requirements, Nigeria was admitted as a member of the International Port Community System Association (IPCSA) to join top-class ports in the region, like Tangier Med Port of Morocco, Ghana, Togo, Ivory Coast, Benin Republic amongst others.

“Furthermore, the Nigerian Ports Authority recognised the importance of Single Window and has planned and implemented its strategy and provided leadership within the Nigerian Ports Community.

“The Authority has taken a very proactive approach to embracing ICT technologies in implementing a number of its internal activities. This is due to the belief that cargo operations in our Ports cannot meet International Standards without the Port Community System.

“The National Single Window is a central piece in the modernisation of our trade facilitation, and the Nigerian Ports Authority, under the supervision of His Excellency, Alhaji Adegboyega Oyetola CON, Honourable Minister of Marine & Blue Economy, is fully committed to its successful implementation,” he added.

Tags: Adeboyega OyetolaNational Single Window
Boyo Akomo

Boyo Akomo

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