Economy
Nigeria Loses $7bn Yearly to Inefficiency, Corruption at Ports
By Adedapo Adesanya
Nigeria losses over $7 billion annually to inefficiency and corruption, a report by the Nigeria project of the Maritime Anti-Corruption Network (MACN) in collaboration with the Lagos Chamber of Commerce and Industry (LCCI) has revealed.
The report said that illegal charges, rent-seeking and corrupt port officials and circumstances of excessive delay to import and export processes were some of the administrative bottlenecks responsible for such huge losses.
“In economic terms, the private sector and the Nigerian government lose as high as N600 billion annually as a result of administrative bottlenecks and delays at the port and terminals in Nigeria,” it stated.
In the report, challenges of port administration were said to remain a major issue as operators continue to face lingering challenges that include infrastructure gaps, regulatory inconsistencies, duplication of roles by Ministries, Departments and Agencies, MDAs, high rate of infractions by MDAs, cumbersome cargo clearing processes, multiple taxations and poor state of the roads.
“These challenges, particularly cargo clearance processes and modal transportation have created circumstances of excessive delays to import/export processes, red tape, rent-seeking and corrupt demands, human and vehicular congestion in and around the ports and illegal charges leading to high of business operations.
“Estimates indicate that the economic cost of these inefficiencies to the Nigerian government and private sector is as high as $7 billion annually.
“Broken down, the Lagos Chamber of Commerce Industry, LCCI, further calculates these annual losses to amount to N600 billion in Customs revenues, $10 billion in non-oil export and some N2.5 trillion in corporate revenues, including a drop of 38-40 per cent in industrial capacity,” a part of the report disclosed.
The Executive Secretary of the Nigerian Shippers Council, Mr Emmanuel Jime, said that the Nigerian ports have been classified as the worst in the world due to traffic congestion, safety and security concerns and logistics shortcomings that have plagued the ports.
Similarly, the Chief Executive Officer of the Convention of Business Integrity, Mr Soji Apampa, the convener of the Port Users Conference themed Retooling the Maritime Sector for Stronger Economic Growth, said the that the focus of the MACN Nigeria project is to use the collective action to strengthen good governance, reduce corruption and improve the investment climate in the Maritime sector.
Mr Apampa said,” We achieve this by working with the industry to strengthen compliance with government regulation, stakeholder activism and public vigilance.”
By Adedapo Adesanya
Dangote Refinery reportedly issued a tender on Tuesday to sell 128,000 metric tons of residual fuel oil in April 2025.
Reuters reported that this is according to a summary of the tender document.
The 650,000 barrel per day Dangote refinery will close the tender today — Wednesday, March 26 by 1 pm (Nigerian time)— as it seeks buyers for 88,000 tons of low sulphur straight run fuel oil and 40,000 tons of slurry oil for loading on April 10-12, the summary showed.
Straight run fuel oil is a feedstock processed through secondary refining units and turned into products like petrol and diesel.
Meanwhile, industry monitor firm, IIR noted that Dangote will shut its current 204,000 barrels per day petrol producing unit for 30 days for maintenance tentatively expected to start on June 1.
Dangote’s fuel oil exports averaged 75,000 barrels per day over the period from March to August 2024, but dropped to 20,000 barrels per day from September, according to shipping data analytics firm Kpler, when its petrol making residue fluidized catalytic cracking unit started production.
The refinery has been buying feedstock from across the world— including from the US, Angola, and Algeria— to add to its domestic deliveries as it looks to meet its full capacity target by end of the month.
In February, Mr Edwin Devakumar, vice-president of Dangote Industries Limited (DIL), said the refinery could begin operating at full capacity in 30 days.
The Lagos-based oil facility received above 24 million barrels of Nigerian supply in October and November last year.
The major shareholder in the structure and chairman, Mr Aliko Dangote assured Nigerians that his refinery has over N600 billion worth of premium motor spirit (PMS) in storage that can sufficiently meet Nigeria’s needs.
The buying spree comes as the Naira-for-crude deal with the Dangote Refinery and other local refineries was suspended by the Nigeria National Petroleum Company (NNPC) Limited.
Nigeria’s decision to cancel the Naira-for-crude deal with the refinery has since created panic in the hearts of marketers and consumers alike.
The 650, 000 barrels per day refinery has also suspended selling petrol in Naira to marketers.
It lamented that there was a mismatch between its sales proceeds and its crude oil purchase obligations, which it said are currently denominated in US Dollars.
By Modupe Gbadeyanka
The Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, has lauded the reforms being carried out by his team to restore confidence in the Nigerian economy.
Speaking when a delegation of scholars from the Harvard Kennedy School visited him at the CBN headquarters in Abuja, he said the strategies put in place by the apex bank to stabilize the foreign exchange (FX) market and curb inflation in the country were already yielding positive results.
“Mr Cardoso acknowledged recent challenges but highlighted progress in stabilizing the foreign exchange market and curbing inflation,” a statement from the CBN on Tuesday disclosed.
He expressed the impact of the educational institution in his leadership skill, saying it is an honour to be associated with the Harvard Kennedy School.
“As we reset the bank, we are committed to being a hub for thought leadership. The exposure you gain from institutions like Harvard is invaluable, and we see this as an opportunity to build long-term alliances,” he was quoted to have said.
The CBN chief is an alumnus of the Harvard Kennedy School and the first African elected to the global HKS Alumni Board of Directors.
The visit was part of the scholars’ Africa Trek, which also included stops in Ghana. It is the first time a Harvard Africa Trek delegation would visit the CBN.
The delegation comprised 50 students from 19 countries, including representatives from the Harvard Business School, Massachusetts Institute of Technology and Stanford University.
President of the Harvard Kennedy School Alumni Association of Nigeria, Adaora Ndukwe and the HKS Nigeria Trek Delegation Lead, Ms Sheffy Kolade, thanked the central bank for hosting the students.
The Africa Trek initiative is designed to foster direct interactions between emerging global leaders and key policymakers on the continent.
It provides a platform for in-depth discussions around governance, innovation, economic development and the role of central banking in national progress.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by marginal 0.02 per cent on Tuesday, March 25 spurred by a boost in the price of 11 Plc.
At the close of business, the share price of 11 Plc increased during the trading day by N1 to close the day at N241.00 per unit compared with the previous day’s N240.00 per unit.
Consequently, the market capitalisation increased by N340 million to settle at N1.929 trillion, the same value it ended a day earlier, and the NASD Unlisted Security Index (NSI) went up by 0.62 points to 3,340.14 points from Monday’s 3,339.52 points.
Trading data showed a decrease of 98.3 per cent in the volume of securities transacted to 16,848 units from the 961,456 units transacted in the previous trading day, the value of transactions slid by 85.6 per cent to N3.2 million from N22.1, and the number of deals fell by 81.8 per cent to four deals from 22 deals recorded.
Impresit Bakolori Plc remained the most active stock by volume at the bourse since the start of the year till yesterday with 533.9 million units worth N520.9 million, followed by Industrial and General Insurance (IGI) Plc with 70.0 million units worth N23.8 million, and Geo Fluids Plc with 44.1 million units sold for N88.9 million.
Also, Impresit Bakolori Plc was the most active stock by value on a year-to-date basis with a turnover of 533.9 million units worth N520.9 million, trailed by FrieslandCampina Wamco Nigeria Plc with the sale of 13.3 million units valued at N513.9 million, and Afriland Properties Plc with 17.6 million units valued at N360.1 million
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