PORT REFORMS AND LOCAL CONTENT: HAS NIGERIA FARED WELL?

The Nigerian government's port reforms, initiated in 2004 and implemented in 2006, aimed to improve the efficiency of the country's ports by handing them over to private operators under concession agreements.

However, the impact of these reforms on local content operations has been a subject of debate.

According to Aare (Asiwaju) Haruna Omolajomo, General Secretary of the Association of Bonded Terminal Operators, the concessionaires have failed to patronize local content operators, despite the government's policy on local content.

This has resulted in the marginalization of bonded terminal operators, who were previously recognized as integral to port operations.

The Bonded Terminal Operators were shocked when the concessionaires took over and shut their doors against them, despite their cashable bank bond of N100 million.

This treatment is in contrast to the recognition given to bonded terminal operations by global organizations such as the World Trade Organization (WTO), United Nations Committee on Trade and Development (UNCTAD), and World Customs Organization (WCO).

Omolajomo argued that the port reforms have not translated into growth for local content operations, citing the example of Ghana, where local content has thrived. Instead, the reforms have led to the marginalization of local content operators, who are struggling to survive.

To address this issue, Omolajomo proposed several solutions, including:

Conscious Policy of Patronage Implementing a conscious policy of patronage of bonded terminal operations by concessionaires. Separating operations of local content from foreign content in areas such as clearing agency, ICD, empty holding bay, inland ports, barge, shipping, etc.

Regulation of Fee: Regulating fees collected by bonded terminals to prevent them from collecting fees on behalf of third parties.

- *Promotion of Local Content*: Promoting, facilitating, and regulating the development of off-dock cargo handling facilities, bonded terminals, and warehouses.

Compliance with Local Content Policy: Ensuring that concessionaires comply with the local content policy of the Federal Government.

In conclusion, the port reforms in Nigeria have not had a positive impact on local content operations. The concessionaires have marginalized local content operators, and the government needs to take urgent action to address this issue.

By implementing the proposed solutions, the government can promote the growth of local content operations and ensure that they are not left behind in the development of the country's ports.