Analysis Of Cargo Pilferage In Nigerian Seaports: Pre And Post Concession Eras

CHAPTER ONE

INTRODUCTION

1.0 Background Information

The seaports are very important to the Nigerian trade as practically all imports and exports move through the ports. The importance of the seaports is attested to by the fact that approximately 99% by volume of Nigeria total imports and exports are seaborne; Nigeria ports control 60% of import into West and Central Africa. The ports have served as a major determinant of how economic activities are distributed. The volume of cargo-throughout at the ports is an important measure of the level of economic development of a country (Chioma, 2011). The volume and value of cargo received by ports pay a vital role in ports revenue earnings as such cargoes must be handled seriously. Cargoes safety is a very important function of any port system that drives the ports economy and the nation’s economy concomitantly. Therefore, it becomes necessary that cargo pilferage or theft which happens to be an age-long disease affecting ports especially ports of developing countries be tackled to ensure a more efficient port in terms of cargo friendliness. 2 It was in view of this problem mentioned above and other related issues that precipitated the move to concession the Nigeria Seaports so as to allow for efficiency in ports operation viz-a-viz cargo safety during her stay in the ports. A port is a location on a coast or shore containing one or more harbours where ships can dock and transfer people or cargo to or from land. Port locations are selected to optimize access to land and navigable water, for commercial demand, and for shelter from wind and waves. The use of the sea as a means of transfer in Nigeria dates back to the 15th century (1458) when the Portuguese sailed into Lagos with their vessels basically to trade on artifacts in Benin City. From the pre-independence era till date, the nation’s maritime industry is characterized by the domination of foreign vessels and/ or carriers from the developed market economies of Western Europe and America. In order to control this scenario, subsequent developments led to the opening of ports at Apapa and Port Harcourt, rolling in the creation of the Nigerian Ports Authority (NPA) by the provision of Ports Act 1954 to load and discharge as well as maintain and develop the ports (Njoku, 2009).