NPA attributes delay in renewal of Concession agreement to plans for strong legal framework

NPA attributes delay in concession renewal to plans for strong legal framework

By Babatunde Aremu

The Nigerian Ports Authority (NPA) has justified delays in renewing port concession agreements, insisting that a thorough review is necessary to strengthen investor confidence and avoid future disputes.

Speaking during an interactive session with maritime journalists, NPA Managing Director, Dr. Abubakar Dantsoho, said the government is focused on correcting structural issues in existing agreements before approving renewals.

He acknowledged concerns raised by terminal operators over uncertainty but maintained that a flawed agreement would do more harm than a delayed one.

“The end justifies the means. It is better to get it right than to rush into agreements that will be challenged later,” he said.

Dantsoho noted that both the NPA and concessionaires had raised concerns over unmet obligations, which must be resolved before any extension.

He stressed that investors prioritise clarity and legal certainty over speed.

“No investor will put money where the legal framework is weak. What matters is the quality of the agreement, not how fast it is signed,” he added.

He indicated that the outcome of the review could attract new investors, especially if existing operators choose not to continue.

On Inland container depots and bonded terminals, in a blunt assessment, Dantsoho said operators of inland container depots and bonded terminals must adapt to changing realities, warning that declining congestion may render their current business models obsolete.

“They played their role during congestion. But business is dynamic. They must restrategise,” he said.