Thousands of jobs are hanging in the balance as the Nigerian government struggles to renew the expired seaport concession agreements for key terminals across the country.
The delay in renewing these agreements has sparked growing concern, with industry experts warning that over 10,000 workers are at risk of losing their livelihoods.
At the heart of the issue is the stalled renewal of lease agreements for eight major port terminals, including those located in Apapa, Tin-Can Island, Onne, and Warri. These terminals are critical for both bulk cargo handling and container operations, and their management has been in the hands of private companies for years.
The expired concessions, which range from 10 to 25 years, have left the future of operations uncertain. Among the notable agreements are the 15-year lease given to ENL Consortium for Apapa Terminal D, and the agreement for Apapa Terminal E, which expired in 2021. Additionally, the Tin-Can Island Container Terminal (Terminal B) lease expired in 2016, yet operations have continued despite concerns over its legal status.
The situation has created a ripple effect throughout the maritime industry. Five Star Logistics Limited, responsible for the Tin-Can Island Port’s (TCIP RORO) terminal, had its lease end in August 2021. Other operators, such as Ports & Terminal Multiservices Limited and Brawal Oil Services Limited, face similar uncertainty as their agreements expired in 2021 and 2016, respectively. Even older concessions, like the one held by Intels Nigeria Limited for the Onne FLT B terminal, ended over a decade ago.
“Over 10,000 Jobs Are on the Line”
The delayed renewal of these lease agreements has become a matter of urgent concern for the Maritime Workers Union of Nigeria (MWUN). Comrade Adewale Adeyanju, President-General of the MWUN, expressed his fears about the future of the workers in these terminals.
“Many of the port terminals have their lease agreements already expired, and the government has been applying lip service to the renewal of these agreements,” Adeyanju said in an exclusive interview with the Nigerian Tribune.
He added, “As I speak to you, many jobs are on the line due to the uncertainty surrounding these lease agreement renewals.”
He explained that the renewal of these agreements is directly tied to job security in the industry. “It is when these agreements are renewed that jobs will be secured,” Adeyanju emphasized.
“If the government terminates or refuses to renew these agreements, many workers will be out of jobs. We are talking of about 10,000 jobs here,” he warned.
Government’s Concerns Over Investments
Despite the urgency voiced by workers and unions, efforts to get the Ministry of Marine and Blue Economy to comment on the matter have been unsuccessful. Calls placed to the minister’s media aide, Mr. Ismaila Omipidon, went unanswered.
However, a source close to the ministry revealed that the government’s reluctance to renew the concessions is linked to dissatisfaction with the level of investment by the private companies operating the terminals.
“The port concession renewal has been delayed because the level of investment at the port is not what the government expected by now,” the source explained. “When you look at what is available at neighbouring ports, you will realize that our ports are far behind in terms of facilities.”
The source continued, “The government expected more from these private investors running the ports, and that is why the lease agreements have been put aside for now, till further notice.”
This delay in renewing the concessions has left operators and workers in limbo. With port operations continuing under expired agreements, there are mounting concerns about the legality of current activities. The lack of clarity has made it difficult for companies to plan ahead, and workers fear for their futures.
The Impact on Nigeria’s Maritime Industry
The Nigerian maritime sector has long been a crucial part of the country’s economy. Ports like Apapa and Tin-Can Island handle a significant portion of the nation’s imports and exports, making efficient and well-managed terminals essential to the smooth flow of trade.
As the government assesses the investments made by the private companies, it is clear that the maritime industry has struggled to match the standards of ports in neighboring countries.
In the absence of timely renewals, some fear that the ongoing delays could deter future investments in Nigeria’s ports, further isolating the country’s maritime industry in a competitive global landscape.
Uncertainty Continues
While there is no clear timeline for when the renewed lease agreements will be finalized, stakeholders are urging the government to take swift action to secure jobs and reassure the industry.
For now, the specter of uncertainty looms large over Nigeria’s seaports, and the livelihoods of over 10,000 workers hang in the balance.
