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FG Begins Transfer of Dry Port Functions as NPERA, NPA Hold Talks

The Federal Government has commenced moves to restructure the management and regulation of Nigeria’s inland dry ports, with the Nigerian Ports Economic Regulatory Agency (NPERA) and the Nigerian Ports Authority (NPA) beginning discussions on the transfer of some dry port-related functions.

The development follows directives from the Federal Ministry of Marine and Blue Economy as part of efforts to streamline responsibilities among agencies under the ministry.

The restructuring comes after the government began transferring inland dry port functions from the Nigerian Shippers’ Council (NSC) to the NPA, following the transformation of the Shippers’ Council into NPERA.

The reform is designed to reduce overlapping responsibilities among agencies involved in Nigeria’s maritime and inland logistics system.

Stakeholders had previously raised concerns over possible duplication of functions involving agencies such as the NPA, Nigerian Maritime Administration and Safety Agency (NIMASA), National Inland Waterways Authority (NIWA), NSC, Nigerian Navy and Nigeria Customs Service (NCS).

The reform, directed by the Minister of Marine and Blue Economy, Adegboyega Oyetola, seeks to create a clearer distinction between economic regulation and the development and operation of port infrastructure.

Under the proposed framework, NPERA is expected to take responsibility for economic regulatory functions, including port tariffs and charges, competition, licensing, service standards, commercial dispute resolution and protection of port users.

The Special Adviser to the Minister of Marine and Blue Economy, Bolaji Akinola, said the clearer separation of responsibilities was intended to strengthen regulatory independence and create a more predictable operating environment.

He said the new structure could benefit terminal operators, shipping companies, importers, exporters and investors by reducing potential conflicts of interest within the regulatory system.

An inland dry port is a cargo facility located away from the coastline where goods can be received, handled, stored, cleared and transported to or from seaports.

Such facilities are designed to take some port services closer to businesses and importers located in the hinterland.

For Nigeria, inland dry ports can provide an alternative logistics channel for businesses located far from Lagos and other coastal ports while helping to improve the movement of cargo across the country.

NPERA is being positioned as the economic regulator for Nigeria’s port sector.

Its Director-General, Dr Pius Akuta, said the agency’s responsibilities include regulating economic activities, promoting competition, overseeing tariffs and charges, protecting port users and resolving disputes within the sector.

The proposed transfer of relevant dry port functions is therefore intended to bring those activities within a dedicated economic regulatory framework.

Technical discussions between the agencies are expected to address possible areas of overlap involving NPERA, NPA, NIWA and other government institutions.

The objective is to establish clearer lines of responsibility and prevent multiple agencies from exercising the same regulatory or operational functions.

Akuta also referred to Section 51 of the NPERA Act, saying its provisions would need to be operationalised to support the transition.

The section forms part of the legal framework governing the transfer and alignment of relevant responsibilities under the new regulatory structure.

Its implementation is expected to be important in determining how existing functions will ultimately be redistributed among the agencies.

The proposed restructuring does not mean the NPA will completely withdraw from the inland dry port system.

NPA Managing Director, Dr Abubakar Dantsoho, said the authority would provide operational and technical support during the transition.

The NPA is also expected to provide updated information on the current status of inland dry ports to assist the process.

The focus, therefore, is on separating economic regulation from operational responsibilities rather than removing the NPA entirely from the inland port system.

The National Inland Waterways Authority is also expected to participate in the transition process because inland logistics can involve Nigeria’s waterways.

Its involvement is intended to help clarify responsibilities relating to inland navigation and other waterways-related functions alongside the roles of NPERA and NPA.

The Federal Ministry of Marine and Blue Economy is expected to play a central coordinating role as the agencies adjust their mandates.

Akutah said the proposed committee would reconvene with Minister Adegboyega Oyetola to receive further clarification and agree on the next steps.

The committee is expected to examine the practical issues involved in transferring and aligning the various functions.

If successfully implemented, the restructuring could reduce regulatory overlaps and uncertainty for operators using inland dry ports.

It could also strengthen the role of dry ports within Nigeria’s broader trade and logistics network by improving connections between coastal seaports, businesses and markets in the hinterland.

However, several issues remain to be resolved before the transition can be fully implemented.

These include determining exactly which dry port functions will move to NPERA, which responsibilities will remain with NPA, and what roles will be performed by NIWA and other agencies.

The government will also need to clarify how existing licences, approvals and regulatory processes will be handled and how duplication of charges and regulatory requirements will be avoided.

The implementation timeline is another issue expected to be addressed by the transition committee.

The NPERA-NPA discussions therefore represent an important stage in the Federal Government’s broader restructuring of Nigeria’s inland dry port system.

The outcome will depend largely on how clearly the responsibilities of NPERA, NPA, NIWA and the Ministry of Marine and Blue Economy are defined and implemented.

For businesses and other users of Nigeria’s maritime supply chain, the central expectation is that the new structure will reduce bureaucratic overlap, provide clearer regulatory responsibilities and improve the efficiency of inland cargo movement.

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