NPA Credits Reforms for 25% Export Rise: What It Means for the Economy

Nigeria’s exports have increased by 25 per cent over the past two years, according to the Nigerian Ports Authority, offering a potentially important signal that reforms across the country’s maritime gateways may be improving trade flows.

The Managing Director of the NPA, Dr Abubakar Dantsoho, disclosed the increase at the 2026 Annual World Ports Conference in London, organised by the International Association of Ports and Harbours.

Dantsoho said the expansion was not confined to crude oil and gas. It also covered manufactured products, cocoa, cashew and other agricultural commodities and raw materials.

The NPA chief attributed the performance to Federal Government policies, improved port operations and stronger collaboration between the authority and private terminal operators, including APM Terminals.

For an economy seeking stronger foreign-exchange earnings, deeper industrialisation and less dependence on crude oil, a 25 per cent increase in exports should be consequential. But the economic value of the development depends on what exactly has grown—and whether Nigeria can sustain it.

The reported figure was not accompanied by a detailed breakdown showing whether it referred to export value, physical cargo volume, port tonnage or a combination of indicators.

That distinction matters.

Export receipts measured in naira can increase substantially because of currency depreciation, inflation or higher international commodity prices even when the physical quantity of goods shipped changes only modestly. A stronger assessment would separate export growth by volume and value, oil and non-oil categories, product, port and destination.

Official port data nevertheless point to increased activity. Nigerian seaports reportedly handled 35.7 million metric tonnes of cargo in the second quarter of 2026, up 12.3 per cent from 31.8 million tonnes during the corresponding period of 2025.

The figures suggest that maritime trade is expanding. The larger policy challenge is ensuring that higher throughput produces more domestic value, industrial activity, employment and foreign-exchange earnings.

Export-processing terminals reshape the journey to port

Dantsoho said the NPA had established about four Export Processing Terminals to improve the handling of export cargo.

The terminals bring together the NPA, private terminal operators, the Nigeria Customs Service and other relevant agencies. Goods can be inspected, documented and prepared before they are transported to the seaports for shipment.

This approach seeks to prevent export cargo from arriving at congested ports with incomplete documentation, deficient packaging or unresolved quality issues.

For Nigerian exporters, such failures can be expensive. Cargo delays attract storage and demurrage charges, while non-compliance with destination-market standards can result in rejected consignments, financial losses and reputational damage.

An effective export-processing terminal should therefore provide more than physical storage. It should connect producers with quality assurance, product certification, packaging, aggregation, Customs documentation and predictable access to vessels.

This is particularly important for small manufacturers and agricultural producers. Large companies can maintain dedicated export departments and hire specialist logistics providers. Smaller businesses often struggle to navigate multiple regulators, freight companies and port procedures.

If the NPA successfully links its processing terminals with domestic export warehouses, it could create more structured routes from farms, factories and industrial clusters to international markets.

However, the terminals will be judged by measurable outcomes: reduced processing time, lower cost per shipment, fewer rejected consignments and increased participation by small and medium-sized businesses.

From exporting raw materials to retaining value

The reported rise in cocoa, cashew and raw-material exports is positive, but it also exposes Nigeria’s long-standing value-addition challenge.

Shipping more unprocessed commodities can increase export earnings, but processing them locally would retain more economic value. Cocoa beans generate less income than cocoa butter, powder, chocolate and branded consumer products. Raw cashew nuts capture less value than processed and packaged kernels sold directly to global retailers.

Nigeria therefore needs to distinguish between exporting more and earning more from each unit exported.

Port reforms must be connected to industrial policy. Efficient maritime logistics will deliver the greatest benefit when Nigerian factories can process agricultural commodities, meet international standards and build recognisable brands for global markets.

The export ambition should not end at moving additional cargo through Apapa or Tin Can Island. It should involve increasing the proportion of locally transformed products inside that cargo.

For investors, this creates opportunities in agro-processing, packaging, cold-chain infrastructure, warehousing, testing laboratories, trade finance and export logistics.

AfCFTA opportunity—and the competition within it

Dantsoho said Nigeria was better positioned to take advantage of the African Continental Free Trade Area following reforms introduced under President Bola Tinubu.

AfCFTA offers Nigerian businesses access to a continental market with significant demand for food, manufactured products, pharmaceuticals, construction materials, financial services and digital solutions.

But Nigeria’s population does not automatically guarantee export dominance.

The countries that capture the largest share of intra-African trade will be those that manufacture consistently, certify products quickly and move goods across borders at competitive cost.

Dantsoho cited Nigeria’s growing commercial relationship with Morocco, particularly in manufacturing. Morocco has developed a strong automotive base and has attracted global manufacturers through coordinated infrastructure, export incentives, skills development and supply-chain integration.

Nigeria can benefit from stronger relations with Morocco in automotive components, electric mobility, industrial training and manufacturing partnerships. However, the relationship must not become another channel for importing finished products without meaningful Nigerian participation.

AfCFTA should be treated as an industrial and brand-development strategy, not merely a tariff agreement.

Nigerian ports among the most improved—not the world’s best

Dantsoho also referenced the performance of Apapa and Tin Can Island in the World Bank’s Container Port Performance Index.

The achievement is important, but its description requires precision.

The two Nigerian facilities were not ranked among the 20 best-performing ports in the world. They appeared among the 20 most improved container ports between 2020 and 2025.

Tin Can Island reportedly recorded a 42-point improvement, placing tenth on the improvement table, while Lagos Port at Apapa improved by 35 points and ranked twelfth.

The index primarily assesses the time container vessels spend in port. Recognition for improvement suggests that reforms and operational interventions are producing results.

But improvement from a weak base is not the same as reaching the global efficiency frontier.

Nigerian ports must still address cargo dwell time, congestion on access roads, informal costs, multiple inspections and inconsistent application of digital procedures.

The stronger national narrative is not that Nigeria has already built world-leading ports. It is that two critical ports are showing measurable improvement—and must now sustain it.

For the NPA brand, accuracy strengthens credibility. Overstating the ranking could diminish an achievement that is already worth communicating.

Revenue claim needs a transparent baseline

The NPA managing director also said revenue generated from ports across Nigeria had quadrupled, driven by higher cargo volumes and collaboration with investors and terminal operators.

The claim would be more meaningful with a clearly defined period and comparable audited figures.

Port revenue can rise because of increased commercial activity, better collection, tariff adjustments, inflation or the translation of foreign-currency charges into naira. These drivers have different implications for port users and the wider economy.

Revenue generated through higher trade volumes and reduced leakage would represent a genuine efficiency dividend. Revenue arising mainly from higher charges could increase the cost of doing business.

The NPA should publish a public performance dashboard covering cargo throughput, vessel calls, turnaround time, export tonnage, revenue collections, remittances and port-specific service standards.

Transparency would allow businesses and investors to assess whether reform is lowering transaction costs or simply increasing government receipts.

The $1 billion modernisation challenge

Dantsoho said the Federal Government was investing $1 billion in the expansion and modernisation of Apapa Port to accommodate future growth and improve competitiveness.

Apapa is nearly a century old, while Tin Can Island has operated for more than five decades. Both facilities were designed for vessel sizes and trade volumes considerably different from today’s requirements.

The reconstruction programme is expected to involve collaboration with APM Terminals and other private investors, alongside international technology providers.

Modernisation is overdue, but the size of the capital commitment is not the ultimate measure of success.

Port users will be looking for improved berth capacity, deeper channels, modern cargo-handling equipment, resilient infrastructure and better connections between the ports, roads, railways and inland logistics centres.

Investors will also require clear procurement arrangements, construction schedules, risk allocation and protection against disruption during rehabilitation.

The performance indicators should be straightforward: shorter vessel turnaround, lower cargo dwell time, reduced logistics costs and more dependable service.

Single Window versus Port Community System

Digital reform is another major component of the NPA agenda.

Dantsoho referred to a Single Window platform involving a Singaporean technology partner and a Port Community System being developed with an Abu Dhabi company.

The two systems are connected but serve different purposes.

The National Single Window is designed to allow traders to submit regulatory information once through a unified digital platform used by Customs and other government agencies.

A Port Community System connects commercial participants such as shipping lines, terminal operators, freight forwarders, transporters and port-service providers.

Nigeria’s National Single Window was expected to begin implementation in 2026, with the government targeting a reduction in cargo-clearance time from about 21 days to fewer than seven.

But technology will deliver limited value if agencies continue to demand duplicate documentation, apply inconsistent procedures or insist on physical approvals.

Digitising bureaucracy does not eliminate bureaucracy. The underlying process must first be simplified.

Market, investor and brand implications

For manufacturers and agricultural exporters, efficient ports reduce inventory costs, improve delivery reliability and strengthen the ability to compete in international markets.

For investors, the reform agenda opens opportunities across terminal operations, warehousing, cold-chain logistics, cargo tracking, cybersecurity, trade finance and industrial processing.

The brand implications are equally important.

Ports are among the first physical encounters international businesses have with a country’s commercial system. Delays, unpredictable charges and opaque procedures weaken Nigeria’s investment reputation. Efficient, transparent ports communicate respect for time, contracts and capital.

Nigerian exporters also carry the reputational consequences of port performance. Late shipments and damaged products can undermine buyer confidence even when the manufacturer is not responsible for the delay.

Improving port efficiency is therefore part of strengthening the Nigeria brand.

BRANDECONOMY Insight

The NPA’s reported 25 per cent export increase is a positive signal, but Nigeria should resist celebrating aggregate growth without interrogating its composition.

The decisive questions are whether physical export volumes are rising, whether non-oil products are earning more foreign exchange and whether Nigerian businesses are moving from raw commodities to processed, branded goods.

Port modernisation, export-processing terminals and digital platforms can improve competitiveness. But every reform claim should be matched by an independently verifiable metric.

Nigeria should publish export growth by volume and value, separate oil from non-oil performance, and distinguish ports that are improving fastest from those that are performing best overall.

The real economic dividend will not be the number of tonnes leaving Nigerian ports. It will be the value created before those goods leave: factories operating, farmers earning more, workers employed, brands expanding and investors committing long-term capital.

That is how a rise in exports becomes a rise in national prosperity.