Abstract

This study examines port concessioning in Nigeria and its effect on productivity, with attention restricted to Apapa Port after the concession exercise. It adopts a cross-sectional survey design. The population comprises the Marketing/Commercial Department of the Nigerian Ports Authority (NPA), the terminal operators, and the shipping companies and agents operating in Apapa Port. A convenience sample of 100 respondents was drawn to represent this population. The study relied on primary and secondary data, which were presented and analysed with both qualitative and quantitative techniques. The results show that port concession improved the efficiency of cargo handling. The study concludes that effective and efficient port management is necessary to raise productivity, serve the public, increase government revenue and empower private firms. It recommends that regulatory agencies check the excesses of private operators so that Nigerian shippers are not exploited.

CHAPTER ONE

GENERAL INTRODUCTION

1.1 Background to the Study

1.1.1 Ports, trade and economic development

Maritime transport is the main gateway for international trade for most countries, and ports are a useful indicator of a nation's economic health. Seaborne trade carries most of the world's merchandise by volume (UNCTAD, 2023). Ports also affect the volume and conditions of trade, and they shape the capacity of developing countries to pursue economic growth. Nigeria routes most of its international trade by sea, so the performance of its ports bears directly on its economy. Nigerian ports are therefore under growing pressure to handle the movement of vessels and cargo efficiently.

Port reform has followed a common pattern around the world. Governments have moved toward deregulation, decentralisation and private participation, and they have encouraged competition among operators. Port reforms are policy measures meant to revitalise ports and strengthen their operations, and they are expected to raise efficiency and productivity. The World Bank's Port Reform Toolkit (2007) describes the landlord model, in which the port authority retains ownership of the land and infrastructure while private operators run terminal services under long-term contracts. A concession is one such contract. Concessioning is widely regarded as a way for the state to keep control of port assets while drawing on private capital and management skill.

1.1.2 The meaning of a port

A port is a place on a coast or shore, with one or more harbours, where ships can dock and transfer passengers or cargo to and from land. Port sites are chosen for their access to land and inland waterways, their proximity to market demand and their shelter from wind and waves.

1.1.3 Historical development of Nigerian ports

The use of the sea for transport in Nigeria has a long history. During the colonial period and in the decades after independence, the sector was dominated by foreign shipping lines and carriers from developed economies. Apapa and Port Harcourt developed as the country's principal ports, and the Nigerian Ports Authority (NPA) was established in 1954 to develop, maintain and operate them. The NPA's task was to provide infrastructure and services for seaport operations and to support maritime transport in the country.

Over time the state-run system developed serious weaknesses. In the 1990s, Nigerian seaports were regarded as inefficient, unsafe because of widespread cargo theft and among the most expensive port systems in the world. These conditions produced long ship turnaround times and long container dwell times (Nwanosike, Tipi, & Warnock-Smith, 2016). Commonly cited problems included long waiting times for ships, congestion caused by slow cargo evacuation, inadequate facilities, poor access roads and weak security within port areas. Reform in the 1950s had consolidated port authority functions, but heavy concentration of control in a single public body also led to inefficiency and corruption. Other constraints included ageing infrastructure, limited access to funds for capital projects, insufficient equipment, vandalism of navigational aids, a non-competitive environment that bred complacency, and bureaucratic and political interference in day-to-day operations.

1.1.4 The shift to concessioning

Globalisation exposed the limits of government resources and management expertise in running modern seaports. Under the privatisation programme begun in the early 2000s, the National Council on Privatisation and the Bureau of Public Enterprises, working with the Ministry of Transport and international partners such as the World Bank, designed a framework for private-sector participation in the ports. The stated aims included raising the efficiency of port operations, lowering the cost of port services to users, reducing the drain on limited public funds, stimulating economic activity, and making Nigeria a leading hub for freight and trade in West Africa. After the process that began in the 2000s, the concession agreements were implemented fully in 2006, and port operations were transferred to private terminal operators (Nwanosike et al., 2016). The NPA retained its role as landlord and regulator.

1.1.5 Apapa Port

Apapa Port, formerly the Lagos Port Complex, is among the largest and most important ports in Nigeria, and it was one of the ports concessioned under the reform. Whether it has become more productive since 2006 is the central question of this study.

1.1.6 Empirical evidence on port concessioning in Nigeria

Research on the results of concessioning in Nigeria is mixed, and it has examined the question with different data and methods.

• Nwanosike et al. (2016) used the Malmquist productivity index to compare six Nigerian seaports, including Apapa, across 2000–2005 and 2006–2011. They found that technical efficiency improved after reform but technological progress deteriorated. Overall productivity growth was higher before concessioning than after, and post-concession gains came from scale efficiency (higher throughput). They concluded that concessionaires had not brought in the modern technology many had expected. Apapa and Calabar showed the highest productivity growth.
• Ugboma and Oyesiku (2021) used stochastic frontier models on panel data from 2000 to 2017 and found that average port efficiency rose from about 51 per cent before concessioning to about 60 per cent afterwards. Cargo throughput, turnaround time and handling equipment improved. Challenges remained, including a shortage of skilled manpower, inadequate infrastructure, congestion and operational bottlenecks.
• Nze, Okeudo and Ejem (2021) analysed productivity trends across the six ports. They found that productivity trends vary among the concessioned ports, and that Lagos Port was operating at an optimal scale but with fluctuating managerial efficiency.
• Nze, Ejem and Nze (2020) benchmarked the technical efficiency of Nigerian seaports before and after concessioning, using variables such as ship traffic, berth efficiency, turnaround time and throughput.
• Dosunmu and Fayemiwo (2026) surveyed 331 respondents at Tin Can Island Port, Apapa, and found a significant relationship between port concession and port congestion. They concluded that concession had a positive impact on port efficiency through better service delivery, operational performance and cargo handling.

Taken together, these studies suggest that concessioning has improved some indicators, especially throughput, turnaround and efficiency scores. They also show that the gains are uneven and that persistent problems, especially congestion and weak investment in technology, remain.

1.2 Statement of the Problem

Nigeria has abundant natural resources and the potential for sustained economic growth. Yet its public enterprises have long delivered poor returns on public investment. To address the weak productivity of public enterprises, the federal government adopted a privatisation policy that included the concession of its ports. Handled well, such a policy can strongly benefit the economy.

Before concessioning, Nigerian ports performed poorly. Ships waited long for berths, containers stayed long in terminals, the workforce was often bloated and unproductive, cargo theft was common and port charges were high (Nwanosike et al., 2016). The ports also needed substantial rehabilitation, which the government was reluctant to finance given the sector's inefficiency.

Since the concession exercise, the terminals at Apapa have been managed by private operators under agreements with the federal government. Despite that arrangement, Apapa still appears to fall short of expectations, with reported cargo delays, congestion and weak ship turnaround. Some studies find improvements in efficiency (Ugboma & Oyesiku, 2021), while others find that productivity gains were limited and that investment in technology lagged (Nwanosike et al., 2016). After many years of private management, positive change would be expected in all productivity indicators, and it is important to establish whether that has happened at Apapa.

The research will therefore examine:

1. the general problems encountered at Apapa Port;
2. the orientation workers in the port need;
3. the employment opportunities that could help the port to contribute to the national economy; and
4. how government policy has supported the growth of Apapa Port.

1.3 Objectives of the Study

The aim of the study is to assess the impact of port concession on Apapa Port. The specific objectives are to:

1. determine the role of management style in the administration of Apapa Port after concession;
2. assess the impact of port concession on port congestion;
3. review the effectiveness of concession on cargo clearance;
4. determine the role of concession in the efficiency of cargo handling; and
5. propose possible solutions to make the concession arrangement more efficient.

1.4 Research Questions

1. What is the role of management style in the administration of Apapa Port after concession?
2. Has port concession helped to reduce port congestion?
3. Has port concession improved the efficiency of cargo clearance?
4. Is there a significant difference in cargo handling time since the concession of the port?

1.5 Research Hypotheses

The following hypotheses will be tested.

Hypothesis One
H₀: Management style has no significant relationship with the administration of Apapa Port after concession.
H₁: Management style has a significant relationship with the administration of Apapa Port after concession.

Hypothesis Two
H₀: Port concession does not improve the efficiency of cargo clearance.
H₁: Port concession improves the efficiency of cargo clearance.

Hypothesis Three
H₀: Port concession does not reduce port congestion.
H₁: Port concession reduces port congestion.

Hypothesis Four
H₀: Port concession does not improve the efficiency of cargo handling.
H₁: Port concession improves the efficiency of cargo handling.

1.6 Significance of the Study

The study offers several benefits.

1. Its recommendations may help make Apapa Port more competitive in terms of management and administration within the West African region.
2. It underlines that the economies of developing countries like Nigeria depend heavily on maritime transport. Efficient port and cargo-handling systems encourage shipping lines, importers and exporters to use national port facilities.
3. It places concessioning in a global context, because private participation in ports is a worldwide trend, and Nigeria cannot stay out of the global market in which capital goods and trade pass mainly through ports.
4. It provides policymakers, the NPA, terminal operators and regulators with evidence for reviewing concession terms and oversight (Dosunmu & Fayemiwo, 2026).
5. It adds to the Nigerian literature on port productivity and gives students and researchers a base for further work.

1.7 Scope and Limitations of the Study

Scope. The study focuses on the impact of port concession in Nigeria. It is restricted to the productivity of Apapa Port after the concession exercise.

Limitations. The study is limited to the period under review. A narrow scope also lets the researcher finish within the available time, given the time and resource constraints common to academic research. Findings from a single port and a convenience sample of 100 respondents should be generalised to other ports with caution.

1.8 Definition of Terms

Port concession: An arrangement in which the port authority grants a private operator the right to run terminal services for a fixed period under agreed terms and investment obligations (World Bank, 2007).

Landlord port: A port model in which the public authority owns the land and infrastructure and private operators provide cargo-handling services.

Port productivity: The relationship between the output of port operations (for example, throughput) and the resources used (Nze et al., 2020).

Port congestion: The build-up of ships or cargo that delays vessel turnaround and cargo evacuation.

Turnaround time: The time a vessel spends in port from arrival to departure.

Cargo handling efficiency: The speed and cost-effectiveness with which cargo is loaded, unloaded and moved through the port.

1.9 Organisation of the Study

Chapter One introduces the study. Chapter Two reviews the literature and the theoretical framework. Chapter Three describes the research methodology. Chapter Four presents and analyses the data. Chapter Five summarises the findings, draws conclusions and makes recommendations.

References

Dosunmu, V. A., & Fayemiwo, F. O. (2026). Impact of effectiveness of the concession on seaport efficiency in Tin Can Island Seaport, Apapa, Lagos State, Nigeria. ACU Journal of Social and Management Sciences, 6(1).

Nwanosike, F. O., Tipi, N. S., & Warnock-Smith, D. (2016). Productivity change in Nigerian seaports after reform: A Malmquist productivity index decomposition approach. Maritime Policy & Management, 43(7), 798–811. https://doi.org/10.1080/03088839.2016.1183827

Nze, O. N., Ejem, A. E., & Nze, I. C. (2020). Benchmarking technical efficiency of Nigerian seaports. Journal of Sustainable Development of Transport and Logistics, 5(1), 77–95. https://doi.org/10.14254/jsdtl.2020.5-1.8

Nze, O. N., Okeudo, G. N., & Ejem, A. E. (2021). Trend analysis of the productivity of Nigerian seaports. Journal of Sustainable Development of Transport and Logistics, 6(2), 81–95. https://doi.org/10.14254/jsdtl.2021.6-2.5

Ugboma, O., & Oyesiku, K. (2021). Efficiency and productivity of Nigerian seaports in the pre and post concessioning periods. Maritime Policy & Management, 48(5), 700–710.

UNCTAD. (2023). Review of maritime transport 2023: Towards a green and just transition. United Nations Conference on Trade and Development.

World Bank. (2007). Port reform toolkit (2nd ed.). World Bank.