Port Sector Reforms and Socio-Economic Development: A Case Study of Nigerian Ports Authority

Abstract

Against the backdrop of many years of neglect and decay of infrastructural and super structural facilities, Nigerian ports before 1999 became unattractive to port users because of their uncompetitiveness, high operating tariffs, unproductive labour force, obsolete cargo handling equipment, incessant strikes and congestion. Consequently, many Nigeria bound ships and cargo started to be diverted to the neighbouring ports with the attendant economic, social, security and political implications. On assumption of office in 1999 President Obasanjo's Administration decided to embark on the general reform of the economy, including the country's port sector. The aims of port reforms included NPA restructuring, involvement of private sector in port development, reduction of goods clearance time and costs, promotion of port efficiency and need to align the country's port system with the global trends and practices. In the government's opinion, doing all these things would breathe life back into the ports again, thus stemming the tide of ship and cargo diversion; conserving public funds and preparing the Nigerian ports to serve as hub for the West and Central African sub-regions. One of the objectives of this study therefore was to highlight the impact of the reform not only on the development of NPA but also on other sectors of the economy and society. While the primary data for the study were collected through face-to-face and mail questionnaires, as well as personal interviews, the secondary data were collected through library sources. The data were later analysed qualitatively and quantitatively with the aid of computer. The main findings of the study confirmed that there was a positive correlation between port reform and development of both NPA and other sectors of the economy. They also confirmed in particular that port reform would impact positively on port funding, efficiency, and plant situation among others. Some social costs and implications of the reform were equally highlighted, such as loss of jobs, further enrichment of the ruling elite at the expense of the poor masses etc. Some recommendations and implementation strategies have been made, including the need to improve the rail and road network to assist in prompt evacuation of goods from the ports. In view of huge capital needed to rehabilitate the railway system, Federal Government would require capable foreign investors who are prepared to invest in the railway sector. As for the roads, these could be done through BOT, BOOT, ROT and ROOT by which private sector funds would be used for the development but recoverable over a period of time.