Unlocking Economic Potential By Establishing Dry Inland Port In Maiduguri

Maiduguri, located in Nigeria’s heartland, is a city with a rich history, vibrant culture, and untapped economic potential. Maiduguri, Borno State’s capital, is an important hub in the country’s northeast, connecting various communities and fostering trade and commerce. In recent years, discussions have centred on the establishment of a Dry Inland Port in Maiduguri—a strategic move that could transform logistics, boost regional trade, and spur regional economic growth. The concept of a Dry Inland Port in Maiduguri represents a visionary solution to Governor Babagana Zulum’s logistical challenges. ROLAND OGBONNAYA writes

In a country as large and diverse as Nigeria, the concept of dry inland ports has become increasingly important in recent years. A dry inland port acts as a hub for handling and storing various goods transported by land, providing customs clearance and other logistics services without being directly located on a coast or waterway.

It has gained traction in Nigeria because dry inland ports relieve congestion at seaports by relocating cargo handling activities to the hinterland. This increases overall logistics efficiency and lowers transportation costs.

Establishing dry inland ports in various regions of Nigeria can stimulate economic growth and development by creating job opportunities, promoting trade, and improving local infrastructure, as well as improving connectivity between different parts of the country and neighbouring landlocked countries, allowing for smoother trade and commerce.

Dry inland ports provide an alternative mode of transportation for goods, reducing reliance on seaports and diversifying transportation routes, which can be critical during disruptions, while manufacturers and exporters can benefit from the convenience of inland ports for customs clearance and export processing, resulting in faster turnaround times and increased competitiveness in the global marketplace.

Inland ports serve as strategic warehousing and distribution hubs, allowing for efficient consolidation, storage, and distribution of goods to various regions, and their establishment in some locations aligns with Nigeria’s national development plans by encouraging intra-regional trade, industrialisation, and economic diversification.

Investments in technology and innovation at dry inland ports can help to modernise supply chain operations, improve tracking and monitoring systems, and streamline customs processes, all of which contribute to overall trade facilitation.

As the Governor has stated, it is critical for Borno State, as a border town to these three countries, to have an inland dry port. The advantages of such an approach cannot be overstated

Prof. Babagana Zulum, the governor of Borno State, announced this week that the Maiduguri dry inland port will be operational within six months. The governor announced on Wednesday in Lagos, while speaking to journalists following a courtesy call on Pius Akutah, Executive Secretary of the Nigerian Shippers Council.

Experts view this as a positive development because establishing an inland dry port in Maiduguri, the capital city of Borno State in northeastern Nigeria, would undoubtedly benefit the region’s economy and logistics infrastructure.

However, several challenges have been identified that must be carefully considered and addressed before such a facility can be established and operated successfully.

One of the concerns is security, as Maiduguri and its surrounding areas have been severely impacted by the activities of insurgent groups such as Boko Haram. The volatile security situation makes it difficult to establish and operate a dry port facility. Security measures must be rigorously implemented to protect the port and its operations.

Dr. Zanje Mohammed, a security and investment expert, told Saturday’s INDEPENDENT that Maiduguri, like many other parts of Nigeria, faces infrastructure challenges. Roads, rail networks, and utilities may need to be upgraded or developed to support the smooth operation of a dry port. Inadequate infrastructure can cause delays and increased costs while also ensuring smooth customs clearance processes and regulatory adherence, both of which are critical to the success of a dry port. Key challenges to address include streamlining customs procedures, reducing bureaucratic red tape, and ensuring regulatory compliance.

Other challenges include recognising that establishing and operating a dry port necessitates a skilled workforce with expertise in logistics, cargo handling, customs procedures, and other related fields. Building this workforce may prove difficult in Maiduguri, where skilled labour may be in short supply.

Connectivity to major transportation networks, such as roads, rail, and air, is critical for a dry port’s efficient operation. Improving connectivity and ensuring smooth transportation of goods to and from the dry port can be difficult, particularly in areas with limited transportation infrastructure.

“Establishing and operating a dry port incurs significant costs for infrastructure development, equipment acquisition, employee training, and ongoing operational expenses. It may be difficult to ensure the financial viability of Maiduguri’s dry port and attract investments, particularly in an economically unstable region.

“The development of a dry port may have environmental consequences, including increased traffic congestion, air and noise pollution, and waste generation. The dry port’s planning and operation should prioritise the implementation of sustainable practices and the reduction of environmental impacts.

“A dry port’s successful operation requires political stability and a favourable business environment. Ensure political stability and good governance,” Dr. Mohammed emphasised.

Speaking with journalists, Governor Zulum expressed confidence that the establishment of the Inland Dry Port will create job opportunities for young people while also boosting the state’s economy.

He stated, “The establishment of the inland dry port in Maiduguri will provide numerous opportunities for the government and people of Borno State. It will create jobs, taking thousands of young children off the streets. This is extremely important.

Zulum added that Borno State shares borders with three countries: Niger, Chad, and Cameroon. The inland dry port will facilitate cross-border trade. This is exactly what we are looking for. The relationship between our border countries will improve, the national economy will grow rapidly, and our GDP will increase.

He also stated, “We are trying to divert our attention away from the mono-economy of oil by investing in other opportunities. “I believe Nigeria will be great soon.”

The Governor stated, “The Federal Government is working to ensure rail lines are rehabilitated as part of President Bola Tinubu’s initiatives.” They are in the process of rehabilitating all roads, and thousands of trucks enter Maiduguri every day.

He did, however, state that “establishing a good road system will speed up the process.” Even without rail, the inland dry port’s road transportation system is currently efficient and effective. We anticipate that the project will be completed within six months.

Pius Akutah, Executive Secretary of the Nigerian Shippers Council (NSC), stated that if established, the Maiduguri Dry Inland Port would boost transborder trade, given that Borno is bordered by three countries: Cameroon, Char, and the Niger Republic.

The NSC CEO stated, “As the Governor has stated, it is critical for Borno State, as a border town to these three countries, to have an inland dry port. The advantages of such an approach cannot be overstated.

“With the African Continental Free Trade Agreement (AfCFTA) in place, it is impossible to overstate the importance of having this type of critical infrastructure in a place like Maiduguri, Borno State, which shares borders with three countries in the region.

“I have been to Borno, and I have seen His Excellency’s consistency in his words and his commitment to the development of Borno State.

“When he said six months, I believed him and knew the work would be completed. For example, the transit park area developed by the Excellency contains one of the critical infrastructures required to service the proposed IDP.

“Now, what needs to be done is for those involved to look at His Excellency’s political will and see how they can quickly agree among themselves to make the project a reality.

“This is business, and the initiative does not call for the government to oversee the day-to-day operations of the inland dry port. It is a public-private dimension and is thus driven by the private sector. So the two parties involved should work together to expedite the process of harmonising and reaching an agreement.”

In all of this, one thing is critical: the development of dry inland ports in Nigeria holds great promise for increasing the country’s trade competitiveness, improving logistics efficiency, and stimulating regional development. Nigeria can position itself as a regional trade hub and drive long-term economic growth by effectively leveraging its inland ports and incorporating them into a comprehensive national logistics strategy.

*Saturday Independent