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Home»News»Fixing the Circulatory System: Addressing Nigeria’s Port Bottlenecks and Trade Inefficiency
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Fixing the Circulatory System: Addressing Nigeria’s Port Bottlenecks and Trade Inefficiency

Gift IfeanyiBy Gift IfeanyiDecember 31, 202503 Mins Read
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As 2025 draws to a close, the structural health of Nigeria’s commerce remains a critical topic for economic sustainability. Commerce is often described as the “circulatory system” of an economy, responsible for the flow of goods from global manufacturers to end-users. However, in Nigeria, this system is currently suffering from a “Lagos bottleneck” that is driving inflationary pressure and stifling the country’s entrepreneurial potential.

The Lagos Port Bottleneck

Despite Nigeria’s vast coastline and multiple maritime gateways, over 70 percent of all cargo cleared into the country is funneled through the Lagos axis (Apapa and Tin Can ports). This centralization has led to:

  • Sub-optimal Performance: Inefficient clearing processes that delay the movement of goods.

  • Hidden Costs: “Invisible charges” caused by congestion and delays, which are passed on to consumers as part of the current inflationary pressure.

  • Geographic Imbalance: The neglect of other strategic ports across the country’s geopolitical zones.

The Call for Decentralization

To unlock Nigeria’s economic future and support a market of over 200 million people, analysts and industry observers are calling for the Nigerian Ports Authority (NPA) to aggressively rehabilitate and utilize dysfunctional or underused facilities:

Port Facility Region Current Status
Onne & Port Harcourt South-South Underutilized
Calabar & Warri South-South Dysfunctional/Sub-optimal
Sapele South-South Dysfunctional
Onitsha River Port South-East Underused inland gateway

Expanding operations to these locations would ease the stress on Lagos, reduce the cost of doing business, and instill fairness in the nation’s economic corporate governance.

Value Addition and the “Igba Boi” Model

The piece highlights that sustainable growth requires a shift toward value addition—manufacturing and processing Nigeria’s locally sourced agricultural and mineral resources (solid minerals and petroleum) rather than exporting them raw.

Furthermore, it acknowledges the human element of Nigerian commerce, specifically the Igbo apprenticeship scheme known as “Igba boi.”

  • Entrepreneurial DNA: A culture that grooms young men into professional traders and entrepreneurs.

  • Vocational Professionalism: A structured training system that provides a lifetime career in commerce, even for those who exit the formal school system early.

[Image showing a map of Nigeria with arrows pointing toward diverse port locations (Calabar, Onne, Warri) to symbolize the decentralization of maritime trade away from Lagos]

Summary of Trade Challenges & Solutions

Challenge Impact Proposed Solution
Port Congestion High inflation and clearing delays. Shift operations to Eastern and Delta ports.
Raw Material Export Loss of economic value and jobs. Implement a value-addition/manufacturing model.
Infrastructure Gaps Inefficient flow of manufactured goods. Government-led wharf maintenance and tech upgrades.
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Gift Ifeanyi

Gift Ifeanyi is a passionate and talented young web developer with a flair for storytelling and a keen interest in business and entrepreneurship. She brings a fresh perspective and a tech-savvy approach to delivering daily news and insights on the ever-evolving world of startups, innovation, and business trends. With a commitment to excellence and a drive to inspire the next generation of entrepreneurs, Gift is dedicated to creating engaging and informative content that empowers readers to thrive in the dynamic business landscape.

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