Feature/OPED
Improving the Ease of Doing Business at Lagos Ports
By Timi Olubiyi, PhD
Where problems exist and persist, there are usually opportunities, such is the case of the perennial issues with the Lagos ports where the vessels, trucks, and cargo congestions persist, business opportunities abound.
The Lagos ports; the Apapa and Tin-Can ports, are the busiest in Nigeria and for this reason, congestions exist and cargo remained trapped inside the ports. This situation makes cargo evacuation difficult and this ultimately affects the ease of doing business in the ports and indeed around the ports environment.
These situations continue to hinder trade facilitation, free flow of traffic, and ease of doing business in and around the Apapa area of Lagos State. On the part of vessels calling at Lagos ports, extraordinary delays are suffered due to this congestion and the waiting periods at Terminals continue to exceed 20 days according to findings, which is bad for all known economic reasons.
Findings further indicate that the congestion at the ports is largely due to inadequate and ageing infrastructure, lack of automation, bad roads some of which are currently undergoing repairs, which make trucks remain stuck on roads for long hours and days.
Another significant reason is the state of the rail transport which has forced 90 per cent of cargo to go by road. These challenges are prevalent and from information gathered, some shipping lines sometimes divert Nigeria-bound cargoes to neighbouring ports.
So, with the perennial congestion and with terminal operators running very low on yard space, there is a need for a short to medium-term solution before the government comes up with a lasting resolution to resolve the challenges and ensure free movement of cargoes in and out of the port.
Therefore, opportunities exist in barge operations in the meantime to ease cargo evacuation processes at the Lagos ports. From indications, barge operations have been initiated by maritime regulators to reduce this congestion at the ports but it is high time more attention is paid to it and the benefits thereof.
For readers who are unaware of what a barge is, it is a wide and flat-shaped boat just like a raft built mainly for river and canal transport of bulk goods. The main reason for this particular shape is to ensure that the cargo-carrying capacity is enhanced and more bulk can be hauled and transferred on it.
So, because of its design and usefulness, the usage of barges can convey containers in and out of the ports conveniently.
Therefore, efficient and regulated barge operations can be an effective strategy to resolve the key challenge of congestions at the port and it may drastically reduce the pressure on the roads if adequately regulated and put to use.
In my view, barge operation if harnessed with adequate technology can improve the current situation at the ports particularly with the traffic gridlock in and around Apapa Lagos State.
Without doubts, the use of barge operation can reduce the dwelling time of cargo and turnaround time on vessels calling at the Lagos ports.
Further to this, using barges to evacuate cargo from the ports can become one of the sustainable ways of reducing the burden on Nigerian roads, in the meantime. Without further doubt, if the operation and set-up are done effectively, it can help reduce the overall cargo clearing cost.
In fact, if the services of barge operations are encouraged on our waterways into the hinterland the human and trailer traffic going into the ports will be reduced significantly.
In addition, if barge operation is effectively adopted the capacity of the port to receive more imports would be enhanced and more shipping lines will be encouraged to call at the Lagos ports.
Recall, Nigeria has the population, the market, the businesses and largely because of the import-dependent nature of the economy. Therefore, barge operation can become an important part of intermodal transportation in the country, which is a quick way to ensure seamless cargo evacuation from the ports
Currently, cargo from the ports is moved or evacuated mainly by trucking and a very low and insignificant size is moved by rail, so in the meantime, barge operations can help improve the evacuation technique at the ports.
Even from context observation, a large number of the traffic entering the ports is to deliver empty containers, an alternative to these drop-offs of empty containers can be through barges to the ports without the pressure on the roads and the long queues of articulated trucks at the port entries.
Recall, a truck most time can only transport a single container irrespective of the size of the container, however, a barge can take at least twelve (12) 40-foot containers at once.
Therefore, container barging can form key succour to the current congestion at the ports and promote ease of moving cargoes out of the ports.
A good illustration of how barge operation can be effective can be seen in the arrangement of moving 500 containers out of the Lagos ports in a day. The current situation will require 500 articulated trucks, however, only 42 flat container barges will be required to move the 500 containers to the hinterland, by this technique 500 trucks will be out of the road for that single day barge is considered. This will adequately decongest the port and the roads if the barge service impact is viewed over a week or a year.
In my opinion, the barge operations can easily compliment the already established architecture at the ports and ease the high volume of traffic in and out of the ports.
So, it is safe to say barge operations ought to be part of the architecture of the ports and consideration should be given to improve intermodal transportation around the country.
Considerably, for ease of cargo movement and to further promote ease of doing business at the ports, barge operations will not only assist, it will create jobs and also help to activate more new businesses in that ecosystem.
Port terminal operators (companies that operate terminals) may need to align their operations with that of barge operations and ensure that loading points for barges are created at their various terminals to grow and support this line of business. When a more enabling environment exists, it expands opportunities and such can be achieved at ports with barge operation.
In fact, it will drive job creation, promote more business creation and value-added services within the maritime sector. In reality, it will improve service delivery and the business competitiveness at the ports, truckers and haulage companies will eventually be challenged to innovate, reduce charges and improve on service delivery time.
In conclusion, there is a need to reduce the dwell time of cargo at the ports from twenty-one 21 days to the regional average of seven (7) days and also achieve efficient trade facilitation and ease of doing business at the ports, one of the ways to achieve this in the meantime will be through the use of barge services, in my view.
Therefore, to support this cause, key stakeholders in the maritime sector, regulators, government agencies: National Inland Waterways Authority, NIWA; Nigerian Shippers Council, NSC; Nigeria Port Authority, NPA; Nigerian Maritime Administration and Safety Agency, NIMASA; Nigerian Navy, Nigeria Police, and Lagos State Waterways Authority, LASWA need to work on the barge operation regulations, licensing and registration, market entry and exit modalities, setting service minimum standards and standardization, security, safety, insurance, tariffs, pricing, and others to ensure stable operations of barges in the country. Good luck and God bless Nigeria!
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Dr Timi Olubiyi is an Entrepreneurship & Business Management expert with a PhD in Business Administration from Babcock University Nigeria. He is a prolific investment coach, seasoned scholar, Chartered Member of the Chartered Institute for Securities & Investment (CISI), and Securities & Exchange Commission (SEC) registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: [email protected], for any questions, reactions, and comments.
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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