Nigeria and the Challenges of Economic Reforms (Part 3)

(This is the third of the series on this subject. If this is the first one you are seeing, you may need to read the first two posts to have a better understanding of what is being discussed. The last post discussed why the current reforms in Nigeria have not achieved the desired outcomes. This post continues from there.)

The current reforms in the country will be incomplete without the reform of port services. The processing time in our ports, both for import and export, is perhaps the highest in the world. This is a disincentive to business generally, whether import or export, but more importantly, export of goods. In fact, many agricultural products meant for export often become spoiled due to unnecessary delays at the sea ports.  Is it not a paradox that a firm owned by a Nigerian manages the Heath-row along with some other airports in the United Kingdom while civil servants are the ones managing the different ports in his own country? This same Nigerian recently bought the Panamanian ports for his company to manage. Civil servants cannot run businesses; the civil service is not designed for that. You cannot improve efficiency in the system by training and retraining civil servants. It will serve the interests of the country better if all the ports are concession ed or privatized for more efficient management; what should be paramount is ensuring that there is transparency in the process; that only those who could manage the ports end up acquiring them.
Nigeria will not improve its export potentials and increase the volume of goods for export with the kind of port services that we have. Export of goods and services must be made to be so easy that it becomes an incentive for producers to expand or increase production because they know they can sell both within and outside the country. One of the benefits of the low value of the local currency is that it makes locally produced goods cheaper at the international market. Without efficient port services, Nigeria will not be able to take advantage of this. It should be noted that part of the intrinsic objectives of the reforms is to stimulate domestic production, diversify the economic base, increase exports and consequently foreign exchange earnings. None of these will be achieved without a holistic reform of the port services. (To be concluded).