NPA spends N50m monthly on diesel to power Tin Can Island port

1 Jul 2025

The Nigerian Ports Authority (NPA) is grappling with escalating operational expenses, with the Tin Can Island Port alone consuming over N50 million worth of diesel monthly, according to Comrade Akin Bodunde, President of the Senior Staff Association of Statutory Corporations and Government Owned Companies (SSASCGOC), Maritime branch.

Bodunde made the disclosure during a media briefing held on the sidelines of the Maritime Workers Union of Nigeria (MWUN) 6th Branch Quadrennial Delegates’ Conference in Port Harcourt.

He described the surging energy costs as a major strain on the agency’s finances, stressing that every port in Nigeria currently operates on diesel-powered generators running round-the-clock.

“There is no port that is not powered by generators 24 hours a day. Each generator consumes between 200 and 400 litres of diesel daily. When you operate three or four across different sites, the cumulative cost is enormous,” he said.

Bodunde explained that the monthly diesel usage at Tin Can Island Port exceeds 33,000 litres, with operations extending across locations such as Kirikiri 1 and 2, Ikorodu Terminal, and Mile 2, all dependent on generator power.

While acknowledging that port concessioning has eased infrastructural responsibilities and boosted revenue, he criticised the Federal Government’s policy of deducting 50 percent of the NPA’s internally generated revenue (IGR). He argued that such deductions are unsustainable in the face of mounting operational costs.

Bodunde also addressed the delay in the renewal of port concession licences, calling on the government to reject extensions for terminal operators who have failed to meet performance benchmarks.

“There are operators who have fallen short of expectations. Both the NPA and the government are aware of them,” he stated, without disclosing names.

On infrastructure, Bodunde pointed to the outdated state of Tin Can Port, established in 1976, in contrast with newer, modern facilities such as the Lekki Deep Sea Port and PTML. He said this comparison underscores the urgency for upgrading Nigeria’s ageing port infrastructure.

He also criticised the shortfall in job creation following the port concession process. While the policy was projected to create 500,000 jobs, he claimed that fewer than 2,000 people are currently employed directly by terminal operators, excluding dockworkers who are hired under separate arrangements.

Commenting on staffing within the NPA, Bodunde clarified that recruitment drives were conducted in 2013, 2016, 2018, 2020, and 2023. However, he acknowledged that career progression within the organisation has led to a top-heavy structure, rather than a reduction in hiring.

He proposed the introduction of severance schemes, akin to those implemented at the Central Bank of Nigeria (CBN) and the Nigerian Maritime Administration and Safety Agency (NIMASA), as a means of managing the workforce more effectively.

“The top remains bloated, and we need more junior officers. We are also revisiting the promotion policy to address this imbalance,” he concluded.

As the NPA confronts rising fuel expenses and structural inefficiencies, union leaders are calling for urgent reforms to revitalise Nigeria’s maritime operations and ensure long-term sustainability.