Port concession helps Nigeria’s economy

The Seaports Terminal Operators Association of Nigeria (STOAN) has stated that Nigeria saved $8.5 billion (N3.91 trillion) through the Federal Government’s port concession programme, which was previously paid as congestion surcharge to foreign shipping lines.

The Chairman of STOAN, Vicky Haastrup, said that terminal operators, who are members of the association, will invest more in the ports once pending concession agreements are renewed. Haastrup also added that the port concession programme reduced the waiting time for vessels coming into Nigerian ports from an average of 45 days before 2006 to less than three days at present.

This has resulted in the elimination of the port congestion surcharge, which saved Nigeria’s trading community over $500 million yearly.

Haastrup urged the government to speed up the process of port concession renewals, so terminal operators can inject more funds to enhance the competitiveness of Nigerian ports. The port concession programme has led to the injection of private capital into port development, which has helped to free up government resources for other developmental purposes, eliminated port congestion, and led to the modernisation of Nigeria’s seaports.

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