FG splits port powers as NPA takes over dry ports, new regulator

The Federal Government has begun a major restructuring of Nigeria’s maritime and port industry, transferring Inland Dry Port (IDP) functions from the Nigerian Shippers’ Council (NSC) to the Nigerian Ports Authority (NPA) as the country moves to establish a separate economic regulator for the ports sector under the newly enacted NPERA Act 2026.

Minister of Marine and Blue Economy, Adegboyega Oyetola, announced the directive on Thursday, saying the restructuring is intended to eliminate overlapping responsibilities and create a clearer separation between regulation, infrastructure development and port operations.

Oyetola said the transfer would enable the NSC, which has served as Nigeria’s interim port economic regulator since 2014, to concentrate on its new regulatory role, while NPA assumes responsibility for promoting and integrating inland dry ports into the wider national logistics network.

“I have directed the transfer of the Inland Dry Port (IDP) functions of the Nigerian Shippers’ Council (NSC) to the Nigerian Ports Authority (NPA), as part of our efforts to establish a clear separation between port economic regulation, development and operations,” Oyetola said.

He also directed the immediate constitution of a Ministerial Committee to oversee the transition of the NSC into the Nigeria Ports Economic Regulatory Agency (NPERA) following President Bola Ahmed Tinubu’s assent to the NPERA Act 2026.

The new arrangement effectively brings to an end nearly two decades of efforts to establish a dedicated economic regulator for Nigeria’s ports, with NPERA expected to assume responsibility for tariffs and charges, competition, licensing, service standards, commercial dispute resolution and the protection of port users.

Oyetola said the institutional separation was necessary to strengthen the credibility of the regulatory system and prevent situations where an agency could simultaneously perform operational or development functions while acting as an economic referee.

“A regulator cannot function as an operator and, at the same time, be expected to be perceived as an unbiased referee,” he said.

Under the new structure, NPERA will focus on economic regulation while NPA will take on a larger development and infrastructure role, including the promotion of inland dry ports.

The government believes the transfer could strengthen Nigeria’s inland cargo network by placing dry-port development within an institution with a direct infrastructure and operational mandate.

Inland dry ports are strategically important because they extend seaport services into the hinterland, bringing cargo-handling, customs and related logistics functions closer to businesses located far from the coast.

For Nigeria, expanding such facilities could reduce pressure on congested coastal ports, shorten cargo journeys and improve the movement of goods between ports and industrial and commercial centres.

The restructuring comes as Nigeria pursues major investment in port capacity and logistics infrastructure.

One of the largest recent projects is the planned development of a container terminal at Snake Island Port in Lagos, following a 45-year concession secured by MSC Group. The project includes a 910-metre quay and a 30-hectare container yard, with capacity for expansion.

The Federal Government is also backing major rehabilitation at Apapa and Tin Can Island ports through a £746 million, or roughly $1 billion, UK-supported financing package, with planned investment in automation, cargo-handling infrastructure, quay capacity and measures to reduce cargo dwell time.

The government expects the combination of new infrastructure and clearer institutional mandates to improve vessel turnaround, cargo clearance and Nigeria’s competitiveness within regional and global shipping networks.

The timing is significant because Nigeria’s maritime economy is becoming increasingly important to trade and public revenue. Cargo volumes, port charges, shipping services and logistics activities all depend on an efficient regulatory and operational environment.

The transfer of dry-port functions therefore represents more than an administrative change. It is an attempt to align the different layers of Nigeria’s logistics system, from coastal terminals to inland cargo hubs.

The success of the reform, however, will depend on how smoothly responsibilities are transferred and whether NPERA can establish itself as an independent and credible economic regulator while NPA focuses on infrastructure and operations.

For shipping lines, terminal operators, importers, exporters and logistics companies, the expected benefit is greater clarity over who regulates, who develops infrastructure and who operates port assets.

The broader economic objective is to reduce the cost of moving goods through Nigeria’s ports and hinterland, strengthen trade competitiveness and position the maritime sector as a more powerful engine of economic growth.