A growing controversy has engulfed the concession of Terminal B at the Rivers Port in Port Harcourt, as federal lawmakers and regulators intensify investigations into irregularities surrounding terminal leases across key Nigerian ports.
At the center of the dispute is BUA Ports & Terminals Limited, the concessionaire of Terminal B under a 20-year lease agreement secured in 2006.
The lease formed part of Nigeria’s broader port reform program aimed at transferring terminal operations to private operators while the Nigerian Ports Authority (NPA) retained its role as landlord.
However, the lease has been marred by allegations of non-compliance. According to the NPA, BUA failed to fulfil a crucial lease condition, reconstruction of Berths 5–8 within 90 days of taking over the terminal.
The failure to meet this requirement reportedly led to the structural degradation of the quay apron, prompting the NPA to decommission the terminal in 2016 due to safety concerns.
BUA challenged the move in court and secured a restraining order against the decommissioning, allowing it to continue operations. Ironically, a 2019 report from BUA itself described the quay apron as being “liable to collapse,” validating NPA’s earlier safety concerns. This led to the formal decommissioning of the terminal in May 2019.
However, in a surprising turn, the NPA later withdrew its termination notice, and both parties agreed to resolve the dispute through arbitration before the London Court of International Arbitration (LCIA).
In the midst of the arbitration process, the House of Representatives Committee on Privatisation and Commercialisation has launched a fresh probe into multiple terminal concessions, including those at Rivers, Apapa, Tin-Can Island, and Warri Ports.
Lawmakers have raised questions about expired leases, some of which lapsed as far back as 2021 and the lack of supplemental agreements that would formalize renewals.
During a recent committee hearing, it was revealed that several terminal operators have continued operations without valid lease extensions, contributing to a growing revenue shortfall.
The NPA disclosed that over ₦211.9 billion in concession fees is currently outstanding from terminal operators across the country.
The committee has summoned top government figures, including the Minister of Marine and Blue Economy, the Managing Director of NPA, and executives of concessioned firms to clarify the status of lease agreements, pending approvals, and financial obligations.
Sector-wide Implications
The lease saga at Rivers Port underscores a broader issue in Nigeria’s maritime infrastructure, a lack of regulatory consistency, transparency, and timely contract enforcement. For importers, exporters, and logistics stakeholders, the recurring disruptions at the terminal have affected cargo handling efficiency and supply chain reliability.
Investors and international operators watching Nigeria’s port ecosystem are now weighing the implications of unclear lease terms, regulatory bottlenecks, and delayed legal resolutions.
With arbitration still ongoing and the House probe expanding its scope, the future of Terminal B and Nigeria’s concession framework at large will hinge on the federal government’s ability to restore confidence, enforce accountability, and modernize regulatory oversight.
(Source: Business Day – https://businessday.ng/news/article/lease-controversy-trails-rivers-port-terminal-concession/#google_vignette)
