Former Nigerian Economic Summit Group (NESG) Chairman Kyari Bukar has sounded the alarm on Nigeria’s declining port competitiveness. Speaking exclusively to Channels Television, Bukar painted a vivid picture of how bureaucratic hurdles and inefficiencies are driving international trade away from Nigerian ports and into the welcoming arms of neighboring Benin Republic.
September 20, 2024, Bukar’s words echoed through the studio of “Inside Sources with Laolu Akande,” sending ripples through Nigeria’s economic landscape. The seasoned economist, now Managing Partner at Trans-Saharan Investment Corporation, didn’t mince words as he delved into the heart of Nigeria’s port crisis.
I was in Cotonou a few months ago,” Bukar began, his voice tinged with concern. You can see visible improvement in infrastructure in that city. It’s a port city, and when you look at their ports’ capacity and what they have been importing, it’s astonishing.”
The former NESG chairman went on to share a revealing anecdote that underscored the gravity of the situation. A friend of mine visited a meat exporting company in Brazil,” he recounted. When he asked if they export to Nigeria, they said no. But they confirmed that West Africa, specifically the Republic of Benin, is their largest export market in the region.
This revelation paints a troubling picture of Nigeria’s port inefficiencies. Bukar explained that the volume of meat exports to Benin far exceeds what the country’s population could consume, indicating that these goods are likely being trans-shipped to Nigeria.
The root of the problem, according to Bukar, lies in the bureaucratic quagmire that importers face at Nigerian ports. “If we say we are open for business, and then you come to the ports and are being harassed by six or seven agencies, would you want to do business in that country?” he questioned rhetorically.
Comparing Nigeria’s port operations to those of Benin, Bukar highlighted the stark contrast. In Benin, you just make a phone call, send your waybill, somebody goes there, clears it – no hassles, everything seamless, no demurrage fees,” he explained.
The implications of this inefficiency extend beyond mere inconvenience. Bukar warned that Nigeria might be “looking at a losing battle” when it comes to benefiting from the African Continental Free Trade Area (AfCFTA). This ambitious initiative by the African Union aims to create a single continental market for goods and services, but Nigeria’s port inefficiencies could hamper its ability to capitalize on this opportunity.
Bukar didn’t stop at diagnosing the problem; he offered concrete suggestions for improvement. “Customs should focus on being a facilitator of trade and economic development rather than on revenue generation,” he advised. He also emphasized the need for better infrastructure, including efficient rail systems, well-maintained roads, and modernized ports.
The economist’s concerns extend beyond the ports. He stressed the critical importance of fixing Nigeria’s energy sector to boost economic growth. “Electricity should be available because that becomes one of the significant catalysts for economic development,” Bukar stated emphatically.
As the interview drew to a close, Bukar left viewers with a sobering thought. “If we want to fix the country, we have to punish any form of malfeasance,” he declared. “When you punish it and show it publicly, human behavior begins to shape.”
The implications of Bukar’s revelations are far-reaching. Nigeria, one of Africa’s largest economies, stands at a crossroads. The choices made in addressing these port inefficiencies could determine whether the country capitalizes on the opportunities presented by increased continental trade or watches from the sidelines as neighboring countries reap the benefits.
Kyari Bukar’s insights serve as a wake-up call for Nigerian policymakers. The need for urgent reform in the country’s port operations is clear. As Nigeria grapples with these challenges, the coming months will be crucial in determining whether the country can reverse this trend and reclaim its position as a key player in regional and continental trade.
