CIPE and Lagos Chamber of Commerce and Industry Report Identifies Reforms Needed to Improve Nigerian Port Efficiency and Reduce Corruption

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Report highlights the burden on business of dealing with inefficient port operations and identifies practical reforms to address the challenges.

Center for International Private Enterprise

“The private sector wants to be part of the solution and is ready to work with the government to implement reforms that will boost the Nigerian economy," LCCI President Dr. Nike Akande said.

In an effort to provide business-led solutions to address inefficiencies in the operation of Nigerian ports, the Center for International Private Enterprise (CIPE) and the Lagos Chamber of Commerce and Industry (LCCI) have released a report on needed port reforms.

“This report highlights the burden on business of dealing with inefficient port operations and identifies practical reforms to address the challenges,” CIPE’s Managing Director Andrew Wilson said today. “I congratulate LCCI on producing such a comprehensive and solution-oriented report. This is a great example of how the private sector can play a helpful role in identifying policy solutions to complex governance problems.”

The report, titled “Nigeria: Reforming the Maritime Ports,” suggests reforms to deal with red tape, bottlenecks, regulatory inconsistencies, and poor infrastructure. Companies surveyed reported that problems related to use of the port system are resulting in significant business losses, relocation to nearby countries, and smuggling.

The reforms suggested in the report include using technology to improve operating efficiency and transparency, reducing the number of agencies and individuals involved in the port clearance process, private sector investment to improve infrastructure, and establishment of a single clearance and payment platform.

Adopting the suggested reforms would dramatically reduce revenue lost due to port inefficiencies and generate approximately 800,000 jobs over 18 to 24 months.

“The feedback from the survey overwhelmingly supports the need for reforms to our ports to reduce the inefficiencies currently hobbling business,” said LCCI President Dr. Nike Akande. “The private sector wants to be part of the solution and is ready to work with the government to implement reforms that will boost the Nigerian economy and bring much needed jobs to the region.”

Survey respondents provided information on their experiences moving cargo through the ports, including facing clearance times of five to 14 days, and clearance procedures involving 18 agencies and 23 signatures. Over 90 percent of respondents identified corruption as a major issue.

The full report is available here: http://lagoschamber.com/wp-content/uploads/2016/10/Reforming-the-Maritime-Port-New.pdf

The Lagos Chamber of Commerce and Industry (LCCI) is the premier chamber of commerce in Nigeria representing over 1,500 members.

The Washington, DC-based Center for International Private Enterprise is a core institute of the National Endowment for Democracy and an affiliate of the U.S. Chamber of Commerce. Visit http://www.cipe.org for more information on CIPE’s programs.

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