IMAN Special Taskforce Customs Director, Mubarak urges Economic Viability in Port Development

IMAN Special Task force Customs Director , Mubarak urges Economic Viability in Port Development

By Babatunde Aremu

The Director of Customs and Extant Trade Facilitation at the IMAN Special Taskforce, Dr. Ibrahim Mahmoud Mubarak, has stressed that the development and modernisation of Nigerian ports must be driven by economic viability, investment capacity and demand for port services.

Mubarak made the submission during a panel session at the 4th MARAN Annual Maritime Lecture, held in Lagos with the theme, “Nigerian Ports Modernisation, Charges and the Competitiveness Question.”

He said the economic relevance and geographical location of existing ports must be carefully considered in decisions to develop new deep seaports, stressing that proposed projects must demonstrate sufficient economic viability and the capacity to attract the huge capital required for their development.

According to him, the emergence of deep seaports in Akwa Ibom and other parts of the country would largely depend on economic indices, including industrial activities, major energy projects and other ventures capable of generating sufficient cargo volumes and port-related activities.

Mubarak emphasised that “port development is driven by economics,” noting that demand for port services and the availability of capital to finance multi-billion-dollar infrastructure projects remain critical considerations.

He therefore cautioned against developing ports merely to satisfy the desire to have port facilities in different locations, insisting that such projects must be anchored on clear economic fundamentals.

War-Risk Insurance

On maritime security and the cost implications of war-risk insurance on Nigerian shipping, Mubarak acknowledged concerns over the premiums associated with Nigerian waters but called for stronger intervention by relevant government agencies and regulators through bilateral and international engagements.

He noted that the Nigerian Navy and other security agencies had made progress in reducing piracy incidents in Nigerian waters, but said international maritime security organisations and insurers also consider broader security indicators when determining the level of risk associated with a country’s waters.

The Customs expert explained that incidents involving stowaways, unauthorised access to ports and other maritime security concerns could continue to influence the international perception of risk, even where actual piracy incidents had declined.

He therefore called for stronger efforts to communicate Nigeria’s maritime security improvements to the international community, while urging relevant agencies to intensify discussions on war-risk insurance and other factors affecting the competitiveness of Nigerian ports.

Technology, Integration and Institutional Coordination

Mubarak said discussions at the MARAN lecture had highlighted critical areas requiring attention to improve the competitiveness of Nigerian ports, including modernisation, integration, technology, institutional coordination and institutional reorientation.

He identified duplication of responsibilities among government agencies as one of the challenges that should be addressed through greater integration.

According to him, technological advancement and stronger institutional collaboration would be essential to achieving more efficient port operations.

He said greater coordination among agencies would help reduce overlapping functions, improve the efficiency of processes and create a more seamless operating environment for port users and other stakeholders.

Mubarak also called for a change in the mindset of stakeholders across the maritime sector, stressing that the success of any modernisation programme would ultimately depend on how stakeholders approach their responsibilities and work towards common national objectives.

He stressed that investment in infrastructure and technology alone would not be sufficient to transform Nigeria’s ports without the necessary institutional cooperation and commitment from stakeholders across the maritime value chain.