LAGOS, Nigeria – Once synonymous with crippling traffic and staggering economic losses, Nigeria’s busiest ports are seeing real transformation through the deployment of Ètò, an electronic call-up system built by Trucks Transit Parks Ltd. (TTP) in partnership with the Nigerian Ports Authority (NPA). In this feature, Nigerian Tribune speaks with Irabor Akonoman, TTP’s Head of Operations, and Richard Emenim, Head of Corporate Development, to understand how Ètò has reshaped logistics, slashed haulage costs, and redefined access to Lagos port zones.

Before Ètò: Chaos, Extortion, and Economic Drain

Before 2021, Apapa and Tincan Island were overwhelmed. Port-bound trucks congested bridges and highways, clogging routes from Apapa to Mile 2, Oshodi, and even Obanikoro. “People sold their homes in Apapa because they couldn’t access them,” said Richard Emenim. Every trucker, whether they had business or not, tried to get into the port, creating disorder. Informal actors imposed illegal checkpoints, demanding fees of up to ₦300,000 per crossing.

Traffic congestion, before Ètò

This chaos wasn’t just inconvenient; it was economically devastating. “Nigeria lost about $10 billion annually due to the Apapa gridlock,” Irabor stated, citing reports from the Africa International Trade and Commerce Research. Haulage costs soared, often tripling. A journey that should cost ₦350,000 ballooned to over ₦1 million. Trucks took two to three weeks to move cargo, wrecking efficiency and spoiling perishables. As cargo was diverted to neighbouring ports, Nigeria forfeited vital revenue and trade.

Traffic congestion before Ètò

During-Ètò: Order, Speed, and Efficiency

Since the launch of Ètò in 2021, truck queues have declined dramatically. “Some corridors have seen an 80% reduction,” Richard confirmed. A drive from Oshodi to Tincan now takes 10–15 minutes, a trip that was once a multi-hour ordeal. Satellite imagery confirms the shift from chaos to sanity – where roads were once blocked with trucks, they are now clear.

Satellite images of road condition before Ètò (Source: BusinessPost)

Traffic congestion before Ètò (Drone footage)

More importantly, Ètò introduced predictability. “Transporters now know when to move and how long a trip will take,” Irabor explained. A journey that once lasted weeks now finishes in three days. Fuel consumption, warehousing, and demurrage costs have dropped significantly. Ètò also dismantled the informal payment network that cost truckers up to ₦300,000.

Cargo movement is faster, and logistics costs have dropped over 65%. Consumers benefit from lower prices, and exporters now send perishables without fear of spoilage. “Efficiency is real, evident and verifiable,” Irabor said.

After Ètò, freer roads (drone footage)

After Ètò, freer roads

Government Revenue and Trade Boost

This efficiency translates directly into increased revenue. Faster cargo clearance means more goods move, and more money is pumped into the economy. “Export boxes arrive earlier; vessels load faster; revenues go up,” said Irabor. Nigeria’s GDP benefits as port productivity improves.

Nigeria also rose 22 places in the World Bank’s Logistics Performance Index in 2023, moving from 110th to 88th. Ètò is being studied by countries across Africa. The International Maritime Organization even praised its structured approach during a visit, acknowledging the solution’s adaptability to Nigeria’s scale and complexity.

Ètò as Ecosystem: The Technology and People Behind It

Ètò is more than a scheduling app. It integrates satellite parks, pre-gates, RFID technology, IoT sensors, and a command-and-control centre into a single ecosystem. “Our model rests on three pillars: tech, infrastructure, and stakeholder engagement,” said Irabor.

Real-time data from road observers informs decisions on truck releases. Field officers guide drivers, while command-centre teams monitor efficiency. TTP’s technology is 100% in-house – coded, engineered, and maintained by Nigerian teams.

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“We’ve integrated with all major terminals at the ports and use a private radio network to connect parks across states,” Richard shared. Over 170 system features have been added since 2021 to improve control, ease, speed, and security of the Ètò system.

After Ètò

Investment and Measurable Impact

TTP has invested millions in the Ètò system. The impact is evident. A terminal once limited to 50 truck evacuations daily now processes 400–500. Tankers now move in and out of loading bays without hindrance.

TTP has also undertaken community-focused projects. It has rehabilitated roads around Lilypond and Ijora, restored the Apapa Club, and supported local communities like Ijora Badia to build adequate sanitation facilities as part of its commitment to community development. “We’re not just solving logistics; we’re rebuilding environments, and giving back to society”, said Richard.

Orderly arrangement of trucks in Lilypond Container Park

Ongoing Challenges: Technology, Policy, and Human Factors

Despite incredible milestones brought about by Ètò, some challenges remain. “Some users aren’t tech-savvy,” Richard noted. To tackle this, TTP continues to simplify the interface and expand training across different stakeholder groups and unions. More pressing is the delay in regulatory approvals for tools like RFID tags and EITN (Ètò Interchange Transaction Numbers). The EITN links each container or bulk cargo due for evacuation with a particular truck access booking on Ètò.

RFID tags, already prototyped by TTP, would prevent ticket resale and racketeering. “It’s a unique digital ID. You can’t duplicate or transfer it,” Richard explained. The EITN would help terminals confirm truck-cargo matching before processing. “With both solutions approved, fraud and delays would further drastically reduce, improving efficiency.”

Sample E-Tage StickerFR

Extortion is another concern. Despite dismantling illegal checkpoints, some actors create artificial bottlenecks. “They just relocate and start again elsewhere,” Irabor said. TTP continues to call for a firm consequence management system to hold offenders accountable.

What Comes Next: National Expansion and Digital Integration

TTP’s ambitions extend beyond Apapa and Tincan. It is developing a Yard Traffic Management System to help factories control and optimise truck movements on-site, complete with dashboards for real-time tracking.

They also plan to replicate Ètò across West Africa through a “logistics hub” network—transit trailer parks with facilities like laundries and fuel stations, all connected to Ètò. Manufacturers will be able to pre-plan routes, stopovers, and delivery timelines across states, and custom inspection centres across multiple borders will improve trade under the ECOWAS Trade Liberalisation Scheme and the African Continental Free Trade Agreement.

Tracking technology is in the works to help logistics firms monitor fleet movements, improve planning, and enhance cost efficiency. A national trade dashboard is also in development to help the government track cargo volumes, vessel activity, and terminal throughput in real-time.

“Currently, Customs, Immigration, and other agencies work in silos,” Richard said. TTP is proposing a unified portal with agency-specific modules. This will reduce paperwork, streamline clearances, and curb extortion while giving policymakers reliable data for national planning.

Conclusion

Ètò has turned chaos into coordination and sanity. From drastically reducing truck queues and slashing haulage costs to boosting revenue and restoring sanity to Lagos ports, it has set a new standard in logistics innovation and mobility technology. Built by Nigerians, for unique African challenges, Ètò is not just a solution—it’s a roadmap for transformation, that is suitable for replication across the region and beyond.

With further support, both from the public and private sectors, the Ètò system can scale continent-wide, bringing efficiency, transparency, and economic uplift to Africa’s logistics landscape and port communities.

Richard Emenim – Head of Corporate Development

Irabor Akonoman – Head of Operations

The Truck Transist Park (TTP) is making a new move to collaborate with ECOWAS and support regional governments in West Africa by deploying technology that would make seamless intra-African trade a reality.

This is after the company has successfully scheduled over 3 million truck trips to the port through Ètò since its inception in 2021.

The company’s Managing Director, Jamaica Onwubuariri, noted on Wednesday that this had led to a drastic reduction in gridlock, improved truck and cargo turnaround time in the port, saying it has blocked N2.5 trillion annual loss and a 450 per cent surge in cargo cost.

Safety lapses, bad roads and substandard trucks; racketeering and middlemen distorting pricing and processes; human interference in what should be seamless, technology-driven operations.”

He noted that there had been improved throughput for manufacturers’ trucks struggling to access the port from 40 to over 400 trucks daily as traffic stretched from Apapa to the Maryland axis and to the Cele axis of the Apapa Oshodi Express road.

With the ongoing partnerships with the Nigerian Ports Authority (NPA), terminal operators, security agencies, unions, and associations to sustain progress, he explained that there had been continuous upgrades to the Ètò platform, closing loopholes, tightening controls, and enhancing user experience.

The managing director said: “This is not just about technology; it is about restoring confidence in the possibility that our ports can be efficient and compete favourably with others in the region.

“Recently, I had the privilege of embarking on a strategic trip across the ECOWAS subregion. What I experienced was both sobering and inspiring.

From Lagos to Ouagadougou, Abidjan, Monrovia, and other West African routes, the story is similar: heavy reliance on trucking, coupled with bottlenecks at borders, tolls, and highway corridors.

“The traffic management platform TTP has built in Nigeria is not just a national solution. Ètò is a model that would be scaled regionally.

“Imagine if every ECOWAS country operated a harmonised port truck scheduling, rest stop, and electronic tolling system that supports the multiple currencies used in the region, how much faster goods would move, how much cheaper trade would become, and how much closer we would be to realising the promise of the African Continental Free Trade Area (AfCFTA).”

According to him, the company’s focus was threefold: deepening efficiency at Nigerian ports through continuous technology and infrastructure upgrades, smarter data use and stronger enforcement collaboration.

Onwubuariri stressed: “The maritime and logistics industry was the backbone of commerce in Nigeria. Unless you grow your own food, drill your own borehole or manufacture your own generator, 90 per cent of the items we need daily would need to be delivered to us from somewhere else. In our case, in this country, most of these materials are imported.

“Every single day, about 2,000 trucks move through our Lagos ports and industrial corridors to pick up and drop off consumer and export cargo. But for over a decade leading up to 2021, this critical artery of trade has been clogged by problems we all know too well: Perennial congestion on the access roads; inefficient cargo evacuation.

Onwubuariri noted that the inefficiencies came at a heavy price as they increase turnaround time for trucks and cargo, inflate logistic costs, and ultimately hike the prices consumers pay for essential goods.

The managing director stressed that it was against this backdrop that the company introduced the Ètò electronic call-up system in 2021.

He explained: “When the then Governor-Elect, Mr Babajide Sanwo-Olu, called in March 2019 to ask about how our company can solve the Apapa traffic situation, it was difficult to see into the future transformation that this initiative would go on to have on Nigeria’s port efficiency, maritime operations improvement and quality of life for Apapa and Tincan residential and commercial stakeholders.

The decisiveness of the Lagos State Government and the vision of the Nigerian Ports Authority management have been invaluable.

“I am proud to say that Ètò has changed the narrative. Port roads, once infamous for unending gridlock, are now more orderly and predictable. Access to the ports is no longer based on who you know or how rugged your boys are, but on a pre-set, transparent, technology-enabled process.”

The once-infamous traffic gridlock that crippled Lagos ports and disrupted Nigeria’s maritime economy for more than a decade is steadily giving way to sanity, thanks to the introduction of the Ètò electronic call-up system managed by Trucks Transit Parks Limited.

Since its deployment in February 2021, Ètò has successfully processed more than 3.2 million truck and non-port movements across Lagos in just 54 months, slashing turnaround times and cutting logistics costs nationwide.

Speaking at a press briefing in Lagos on Wednesday, TTP’s Managing Director, Jama Onwubuariri, described the transformation as one of the most significant milestones in Nigeria’s maritime history. He noted that the application now schedules about 2,000 truck trips daily, providing predictable access into Apapa and Tin Can ports.

“For over a decade, the arteries of trade in Lagos were clogged by gridlock, racketeering, unsafe trucks, and inefficient cargo evacuation,” Onwubuariri said. “Ètò has changed the narrative. Port access is now based on transparent, technology-enabled scheduling rather than human interference or bribes. This has restored confidence that our ports can compete favourably in the region.”

Before Ètò, trucks often spent two to three weeks waiting for entry, with drivers paying between N500,000 and N700,000 in bribes to move cargo. The inefficiencies drove cargo evacuation costs up by as much as 550 per cent for cars and 450 per cent for trucks. A Lagos Chamber of Commerce study in 2018 estimated that the country was losing N2.5tn annually to congestion at Apapa.

TTP’s Head of Corporate Development, Richard Emenim, said the electronic call-up system has already saved Nigeria’s maritime sector an estimated $1.7m annually while reducing the cost of moving cargo by 65 per cent. “Manufacturers are now able to repatriate goods faster, oil and gas evacuation has improved, and consumers are no longer forced to bear the brunt of inflated costs,” he explained.

The platform’s impact extends beyond efficiency. According to Emenim, TTP has created 225 direct jobs and more than 700 indirect jobs within the logistics ecosystem. The company has also conducted research in over 25 states, identifying traffic bottlenecks in major trade corridors such as Jigawa and Cross River, with plans to roll out nationwide logistics hubs.

These hubs, he said, will provide gated facilities where truckers can park, refuel—including compressed natural gas options—rest in hostels, and access recreational and repair services. “Our aim is to create a holistic ecosystem for truckers while sustaining gains made in port logistics,” he said.

Onwubuariri added that the system has cut truck turnaround times from weeks to just two or three days, reducing pressure on the supply chain. He stressed that TTP’s integration with the Central Bank of Nigeria’s Nigeria Export Proceeds system has streamlined export processes and introduced direct fund payments, thereby enhancing transparency and eliminating middlemen.

Looking beyond Nigeria, he revealed that TTP is preparing to expand into the wider ECOWAS region, where countries face similar logistics inefficiencies. “During a recent strategic tour from Abidjan to Ouagadougou and Monrovia, we saw the same bottlenecks of border delays and road congestion. Our solution can unlock seamless intra-African trade,” he said.

Technology upgrades have also played a central role in the platform’s success. Olaoluwa Olorunda, TTP’s General Manager for ICT, disclosed that the company has deployed over 170 customer-experience features to improve user trust. Among them is DirectFund, a seamless booking and payment solution that has cut failed transactions from 10 per cent to less than one per cent.

To tighten security, TTP introduced a dual-code system—visible and invisible codes—for each booking, reducing stolen tickets to under 0.5 per cent. The company also launched Electronic Control Module version 2, an innovation that integrates with parking systems and IoT-enabled barriers to ensure only authorised trucks access restricted areas. Olorunda noted that this has improved barrier uptime and efficiency by over 80 per cent.

Reflecting on the early journey of Ètò, Onwubuariri recalled how then Governor-Elect of Lagos State, Babajide Sanwo-Olu, reached out in 2019 to explore solutions for the Apapa crisis. “The decisiveness of the Lagos State Government and the vision of the Nigerian Ports Authority management were invaluable,” he said.

Four years later, the results are visible: improved traffic flow along Apapa and Tin Can, reduced corruption and human interference, and enhanced compliance with truck safety standards. “This is not just about technology,” Onwubuariri said. “It is about restoring confidence that our ports can be efficient, transparent, and globally competitive.”

With over three million truck trips processed, billions saved for the economy, and expansion plans across Africa, TTP’s Ètò system stands as a case study in how technology, government partnership, and private-sector innovation can solve entrenched national problems.

Jama Ọnwụbụarịrị, managing director & Co-founder of TTP

Jámà Ọnwụbụarịrị, the managing director of Trucks Transit Parks Ltd (TTP), has outlined the company’s achievements in transforming Nigeria’s ports logistics while unveiling ambitious plans to expand its solutions across the ECOWAS region.

Speaking to journalists at a press conference held at the Lilypond Container Terminal in Lagos, Wednesday, Ọnwụbụarịrị stressed that Nigeria’s maritime and logistics sector remains the “backbone of commerce,” given that over 90% of the country’s daily consumer and industrial needs rely on imports delivered through its ports.

He highlighted the challenges that plagued the system for over a decade before 2021: perennial gridlock, unsafe trucks, racketeering, and human interference in port access.

“It was against this backdrop that Trucks Transit Parks introduced the Ètò electronic call-up system in 2021,” he said, noting that the platform combined technology, infrastructure, and stakeholder collaboration to restore order to Lagos port corridors.

Before Ètò (pre-2021):

• Truckers waited 2–3 weeks to access Lagos ports.
• Only <50 trucks evacuated daily out of 1,600 in chaos.
• Nigeria’s maritime sector lost ₦2.5 trillion annually due to inefficiencies.
• Cargo costs surged 450%.

After Ètò (2021–2025):

• 3 million truck movements processed in 54 months.
• 65% reduction in logistics cost.
• 2–3 days turnaround time, down from weeks.
• 225 direct jobs and 700 indirect jobs created.
• 170 new features deployed to enhance transparency and customer experience.
• 400+ trucks daily throughput achieved (up from 40 trucks/day).
• $1.7 million annual savings for maritime industry.
• Contributed to Nigeria’s Logistics Performance Index (LPI) improvement.
• Integration with CBN’s NXP system to streamline exports.
• Strengthened collaboration with key stakeholders including the Nigerian Ports Authority (NPA), Lagos State Government, terminal operators, unions, and security agencies.

“Access to the ports is no longer based on who you know, but on a transparent, technology-enabled process,” Ọnwụbụarịrị emphasized.

Regional Ambitions: From Lagos to ECOWAS

The TTP boss also revealed that his recent strategic tour across West African trade routes—from Ouagadougou to Abidjan and Monrovia, exposed a common dependence on trucking, coupled with inefficiencies at borders and toll points.

He argued that Nigeria’s Ètò model can serve as a regional framework for harmonised truck scheduling, rest stops, and electronic tolling across ECOWAS.

Such integration, he said, would fast-track goods movement, reduce costs, and support the implementation of the African Continental Free Trade Area (AfCFTA).

“TTP stands ready to partner with ECOWAS governments to make seamless intra-African trade not just a vision, but a reality,” he declared.

Looking Ahead

Outlining TTP’s roadmap, Ọnwụbụarịrị listed three key priorities for TTP, as deepening efficiency at Nigerian ports through data-driven solutions, stronger enforcement, and infrastructure upgrades; expanding technology footprint with innovations like electronic tags, RFID, and AI-powered compliance systems, and driving regional integration by positioning Trucks Transit Parks as a trusted partner in West Africa’s logistics space.

Ọnwụbụarịrị commended the Nigerian media for playing a watchdog role and urged continued partnership in shaping public discourse.

“When the ports work, Nigeria works. And when Nigeria works, Africa prospers,” he concluded.

Tags: AfCFTAECOWASEtoÈtò electronic call-up systemJama OnwubuaririTrucks Transit ParksTTPTTP ECOWAS

The E call-up system, targeted at managing truck traffic into the Apapa Port, has not only helped to reduce congestion within the port city but has also improved travel time for port users, motorists and residents.

Bala Mohammed, a truck owner, who described the call-up system as the best solution to traffic management in Apapa and Tin-Can ports, states that there has been a significant improvement in traffic as trucks no longer clog the bridges, adjourning streets and port access roads.

According to Mohammed, it now takes two to three days for trucks to access the port from pre-gate or satellite parks compared to the days when trucks will take three weeks or one month to get to the port.

“Eto (the E call-up system) has assisted truckers in bringing down the cost of accessing the port. Before, truckers spend between N250,000 and N300,000 to get to the port, but now we spend no more than N30,000 to get to the port,” he told BusinessDay in a telephone interview.

The E call-up has also helped in bringing down haulage cost, which was formerly between N600,000 and N650,000 to load Apapa to Ikeja, or N1 million to N1.1 million to load Tin-Can to Ikeja, but now, Ikeja from Apapa costs between N140,000 and N200,000 while from Tin-Can it is within the range of N160,000 and N200,000, he said.

Currently, importers pay between N370,000 and N400,000 to move one by 40-foot container from Apapa to warehouses in Ikeja, Lagos, while one by 20-foot container costs about N300,000.

From Tin-Can Port, importers still pay between N700,000 to move one by 40-foot container to the same Ikeja while one by 20-foot costs between N350,000 and N400,000 due to problems associated with return of empty containers.

The reduced traffic congestion and haulage cost are a boon for businesses operating within Apapa, whose profits took a haircut in the back due to the unforgiving gridlock.

For instance, NASCON, a consumer goods company, moved 60 percent of its operations away from Apapa in 2019 after the gridlock affected the movement of raw materials, timely delivery of finished goods to customers and increased turn-around time of the company’s trucks.

Remi Ogungbemi, chairman, Association of Maritime Truck Owners (AMATO), said though the call-up system is helping to address the traffic congestion in Apapa, it has also not performed optimally.

According to Ogungbemi, trucks that normally queue from Apapa to Mushin and Palmgrove before the call-up system no longer queue like that again.

The amount truckers spend to access the port has also reduced drastically, but extortion by the enforcement team remains because there are areas where police still pass trucks in place of the system, he said.

“Why things have not been working as expected is because people that have been benefiting from the chaos still want to be benefiting. This is why they are still looking for how to circumvent and sabotage the system. Whether anybody likes it or not, an automation system for admitting trucks into the port called Eto has come to stay and we can only improve on it,” Ogungbemi assured.

The system does not favour those charging truckers between N100,000 and N200,000 to pass trucks into the port, and such people are no longer getting such monies again, he noted.

While pointing out that truckers still see policemen, LASTMA officials, and Road Safety on the road when it is not supposed to be, he said truckers want the system to work in a way that trucks will remain in their private parks till they receive information that it is their turn to load before they can leave their parks.

On challenges, Eto is still releasing trucks more than necessary, he said, adding that truckers want a situation where trucks would be released according to what each terminal can accommodate at a point in time.

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Releasing 500 trucks because a terminal can attend to 500 trucks in a day is not the best, rather the number can be rationed, he pointed out.

“A situation where we are still having human interference is not the best. It is because the system has not been working as expected. If it has worked as expected, we will not need anybody to stand on the road. Eto system is far better than where we are coming from and we are hoping that it gets to a point where the system will work optimally,” he said.

On some of the challenges facing the system, Mohammed said the existence of multiple checkpoints mounted by the enforcement teams including LASTMA, police, FRSC, and NPA security for extortion is affecting the effectiveness of the system.

“No system is perfect at a go. When the truck leaves the satellite parks or pre-gates to the port, it is supposed to move smoothly but because of extortion, we still see multiple checkpoints. This is affecting the smooth batching of trucks to the port. We need the checkpoints to be reduced in order to enhance the batching of trucks into the ports because the system does not need human interference,” he said.

Shipping a 40-foot container from China to the Apapa Port could cost N500,000 for the 10,540-kilometre voyage, but taking the same out of Apapa to Sango-Ota in Ogun state, cost N1 million as of 2020 for a distance of 38 kilometres.

Dubbed Nigeria’s premier port, Apapa as a community was an enclave for elites several years ago. Expatriates and other high net worth individuals favoured it, but as order and sanity gave way to pollution, traffic congestions, and crime, those who had built their lives around the port-city gradually voted with their feet, and businesses followed suit.

“There are people feeding fat from the fact that there is traffic, but now, it is affecting the generality of businesses,” Paul Odey, general manager/CEO of Apapa GRA Residents’ Association as at 2016 had told this reporter. “Apapa is more than fuel and containers as there are a lot of other businesses. We only have those two businesses surviving while everything else is dying.”

This has come at a cost to the Nigerian economy. As reported by BusinessDay, a report by the Lagos Chamber of Commerce and Industry (LCCI) noted Nigeria loses N600 billion in Customs revenue annually, including $10 billion in non-oil export sector and N2.5 trillion in corporate earnings across various sectors due to the poor state of Nigerian ports. The congestion in Apapa meant government was losing, businesses were losing but the ultimate winners were security agents and street urchins in charge of extortions at multiple checkpoints.

While an estimated 5,000 trucks seek access to Apapa and Tin Can ports in Lagos every day, the two ports can only accommodate 1,500 trucks, according to the LCCI. To get ahead of the queue is where things get interesting and miserable at the same time.

Interesting when the magnitude of extortion, with its dramatic twists is explored, yet, miserable, when the impact of all these on the immediate economy of Apapa is considered, and even the wider Nigerian state.

“We even used to gamble and pay as much as N300,000 to pass our trucks into the port,” said Bala Mohammed, who owns a fleet of trucks. “By the time you access the road around a place like Eleganza, that is when they will turn your driver back, sometimes beat him and even damage the truck, and the person you paid money to will be unreachable. There is nothing you can do as the money is gone.”

As different ‘movers’ are used to facilitate the movement of trucks, it could be a civilian with influence in the port-city or one of the several military officers deployed to ‘maintain traffic’. If money was paid to a uniformed personnel, and a truck still could not access the ports, they would often threaten to ‘deal with’ with the truck owner when such person calls to lament, according to Mohammed.

The gridlock, much of which was artificially created because of roadblocks where trucks were extorted, made commuting in and out of Apapa a hellish experience. With the usual Lagos traffic, while this reporter could for instance commute for 17 kilometres from Ikeja to the entrance of Apapa Bridge at Iponri within 45-minutes, the remaining 4 kilometres to Point road where BusinessDay is located could take an average of 3 hours depending on how fast the trucks move. The impact affected both individuals and businesses.

In the first quarter of 2020, an interview conducted by the Manufacturers Association of Nigeria (MAN) on critical challenges facing the sector, showed 94 percent of the CEOs had said congestion at the ports had a significantly negative effect on their productivity and cost of production.

“Most worrisome are the issues of deliberate delay in cargo clearing time, raising of technical barriers, rejection of relevant documents by officers of the agency that approved import documents, multiple agencies with duplicated functions and other rent-seeking activities of vested interests at the port that excessively fleece operators,” they said.

Read also: National Development Plan 2021-2025 will spur robust growth – APC

Even at the point of entering the port after spending two weeks (on the road), and paying at multiple checkpoints, Mohammed explained that a truck could still be turned back. “We have multiple cabals, so if the mover you pay doesn’t share the money to all the checkpoints, once you get to a particular checkpoint, they will ask your driver ‘how far?’ If the mover is not there or the driver doesn’t know the code to clear his truck, they will turn him back,” he said.

Even though truckers like Mohammed no longer spend as much as N300,000 to access the ports, multiple checkpoints remain sources of extortion, and they still spend up to N30,000 per trip

Technology to the rescue?

After a decade of what appeared to be a hopeless situation, the introduction of an electronic call-up system known as Eto App by the Nigerian Ports Authority (NPA) and its technical partner, the Trucks Transit Parks Ltd (TTP) in February 2021, was welcomed with cautious optimism.

A Presidential taskforce, the Police, Lagos State Traffic Management Authority (LASTMA), the Nigerian Army, and the Nigerian Navy had at different times failed to curb the traffic gridlock in Apapa. To observers, it was doubtful that a mobile app, which could also be accessed through web browsers, would fix the situation.

Five months into the deployment of the electronic call-up system, the cost of transporting containers from Apapa and Tin-Can Ports to importers’ warehouses in Lagos, started declining and currently, has dropped by 75 percent on a year-on-year basis, from N1, 600,000 to N400, 000, according to BusinessDay’s findings.

In addition, the amount paid to shipping companies by cargo owners as demurrage for delay in taking delivery of their consignments has also reduced, since the minimum two-week delay that came with congestion on port roads has been eliminated for now, and hopefully, permanently.

“There is a significant improvement in terms of access to the ports without much stress or having to pay camp boys, cabals, movers, etc the sum of N250 or up to N300 thousand without any assurance of getting to the port,” said Mohammed, who has about 40 trucks already registered on the tech platform.

The Eto App, is used in generating electronic call-ups for trucks, and it has enabled better control and management of port bound trucks. With its introduction, there has been relief for port users, motorists, and Apapa residents from the pains of a decade-old traffic congestion in the entire local government area.

As BusinessDay learnt, fleet owners can register multiple trucks under a single account for either export or import. From the app, they can schedule any truck going to the ports, pay the required fees only and with this, the need to have multiple trucks competing for the roads appears to have been solved.

Once a truck enters the satellite park, they would be booked into the park through the Eto platform, following which the system would batch the truck under 24 hours. If the truck is batched to leave the satellite park, on the same day, it moves to the pre-gate and from there depending on traffic, can be batched out within two days. There are times the process can be completed within 24 hours and a truck would access the port, while in the past, the process took at least 2 weeks.

Once a truck is issued a call up ticket from the gate, it is supposed to move straight to the port without any interference, but with multiple checkpoints cropping out, the automation system is being affected.

This is because once 100 trucks are released from ‘pre-gate’, after one or two hours, another batch of 100 trucks are expected to be released but as multiple checkpoints cause delays, trucks could gradually build up on the roads.

“From Apapa to Ikeja we are now loading for N150,000 to N170,000 which used to cost N500,000 to N1 million before the coming of Eto App,” said Mohammed, highlighting the impact of the technology on the haulage business.

Traces of extortion persist

Even though truckers like Mohammed no longer spend as much as N300,000 to access the ports, multiple checkpoints remain sources of extortion, and they still spend up to N30,000 per trip. A fraction of what was paid before, but still extortion.

Multiple checkpoints, which according to him are illegally mounted by some policemen, joint task teams like LASTMA, FRSC, and NPA, sometime insist drivers ‘give them something’, despite having an Eto ticket.

Recalling an experience earlier this week, one of his trucks was coming from Ijora-Olopa, and the driver had a valid Eto ticket but a policeman stopped him, demanding for N2,000.

“I spoke to the officer and told him the driver is having a valid Eto ticket that qualifies him to access the ports without any interference, and he replied that the Eto ticket is not for him, as long as he is on the road,” Mohammed recounts.

This, he says, highlights the kind of entitlement mentality by uniformed personnel, who remain adamant that if not given money, trucks will not pass. “If you call the area commander or superior police officer, he will tell you that they are not aware and that they did not send those people to do such, yet we have made complaints several times but those people on the field refuse to change their attitude,” he says.

The multiple checkpoints affect not only truckers, but also the automation system, which should not have human interference.

From Ijora-Olopa, security agents are said to demand N2000 or sometimes N5000 per checkpoint, on the bridge they ask for as much as N1500, and all of these add up to N30,000 or N50,000 to load a job of N150,000.

BusinessDay learnt there are some drivers who know their rights, fight for it and will pass through without paying bribes. There is another twist to those who fight for their rights. When security agents trying to extort a truck driver see such a person is unyielding, they could tell them to park somewhere and let other trucks pass. The moment the driver agrees to park the truck, they call LASTMA officers to come and arrest the truck on the claim it has been ‘wrongly parked’. This would end up with the truck being towed away by LASTMA, which then imposes heftier fines on the truck. All of these, just to keep truck drivers pliant and to keep paying bribes, which the Eto App should have eliminated completely.

Original Post by https://businessday.ng/features/article/apapa-an-app-breathes-life-into-a-ghost-town-limits-extortions/

Check by BusinessDay shows that importers and exporters struggled to do business in 2021 as many were setback by issues such as container shortage, high cost of freight, high exchange rate among others.

On the positive side, issues such as the introduction of electronic call-system for trucks was a plus for the port industry as it resulted to drop in the cost of haulage. Here are five things that shaped Nigeria’s port industry in 2021.

Introduction of electronic call-up system

One of the things that decided the way business activities were handled in the nation’s seaports in 2021 was the introduction of the electronic call-up system known as Eto App by the Nigerian Ports Authority (NPA) and its technical partner, the Trucks Transit Parks Ltd (TTP).

Eto App was used in generating electronic call-ups for trucks, and it enabled better control and management of port-bound trucks. This brought in relief for port users, motorists, Apapa residents from the pains of almost a decade of protracted traffic congestion on port roads.

The introduction of the electronic call-up system, which was the first in the history of the Nigerian port business, drastically reduced the man-hour on the port roads as the system came alongside truck transit parks and pre-gate facilities, which enabled trucks to desist from queuing on Apapa roads and bridges.

Crash in haulage cost

Another factor that shaped business activities in Nigerian ports was the drop in the cost of transporting containers from the port terminal to the importers’ warehouses.

Five months into the deployment of the electronic call-up system, the cost of transporting containers from Apapa and Tin-Can Ports to importers’ warehouses in Lagos, started declining and currently, it has dropped by 75 percent on a year-on-year basis, from N1.6 million to N.4 million

In addition, the amount paid to shipping companies by cargo owners as demurrage for the delay in taking delivery of their consignments also reduced due to the removal of the almost two weeks’ delay that come with congestion on port roads.

Container shortage

In 2021, cargo owners found it extremely difficult to get space onboard vessels due to the global container scarcity. This resulted to serious disruption in the global supply chain flow as importers, logistics firms, factories, and retail businesses had to wait for weeks and months in some cases to secure space onboard ships.

Container shortage started with the outbreak of the coronavirus, which compelled many economies to lockdown in 2020, and when economic activities reopened in the second half of 2020, a large number of containers were trapped at ports because factories could not operate for months.

Many Nigerian importers also found it extremely tough to bring in their goods from America, Europe, China, India and other Asian countries.

Read also: E-customs critical to growth of Nigeria’s port industry

“There was a long wait to get containers overseas to freight goods into Nigeria especially at the second half of 2021,” Tony Anakebe, a Lagos-based, clearing and forwarding expert, said.

On his part, Ola Adebayo, Haffar Industrial Company confirmed that the shortage of containers made containerised imports from China take longer time than usual to come into the country.

Soaring cost of freight

Another development that defined business activities at the nation’s seaport was the high cost of freight, which was as a result of the container shortage.

In 2021, the cost of freight skyrocketed as the global shortage of containers resulted to rise in the prices of freight and importers who used to pay $28 per metric ton were made to pay between $38 and $39 per ton to bring goods from the United States to Nigeria.

For containerised goods, moving a 40-foot container from India to Nigeria that used to cost between $3,000 and $4,000 went up as high as about $15,000.

High exchange rate

Another thing that shaped business in the nation’s port industry in 2021 was the volatility, scarcity and high rate of foreign exchange as the value of the naira plummeted. Consequently, companies that depend on imports for their critical input especially local industries struggled to survive.

“Many importers were not able to place an order with their suppliers due to scarcity of foreign exchange, and when available, the rate was also very high. And if there is no foreign exchange, there will be no business in the port industry. This challenge worsened the problem of high freight that importers are facing in the global shipping industry,” Anakebe said.

According to him, the high exchange rate of Nigeria’s currency to US dollar compels importer to use as much as N420 to get one dollar.

This, he said, made it difficult for importers to break even and to recoup the amount invested in their business within the year despite the increasing market prices of goods.

Original post by https://businessday.ng/maritime/article/five-things-that-shaped-nigerias-port-business-in-2021/

The Tin-Can and Apapa Ports are major economic gateway to Nigeria and account for about 80 percent of the country’s total imports.

Also, the cost of moving a 40-foot container which used to be between N1, 500,000 and N1, 600,000 in 2020 has, this year, dropped by 76.7 percent and 75 percent in one year to N370, 000 and N400, 000. Similarly, transporting a 20-foot container which cost N800, 000 in 2020, has equally dropped by 56.3 percent N350, 000.

Currently, shippers pay between N370, 000 and N400, 000 to move a 40-foot container from Apapa to warehouses in Ikeja, Lagos, while a 20-foot container goes for N350, 000 depending on the weight, showing the cost of transportation has remained stable since the second half of the year when the cost dipped.

From Tin-Can Port, shippers still pay between N350, 000 and N400, 000 to move one by 40-foot container to Ikeja, while one by 20-foot costs N350, 000.

Yuletide season normally comes with celebrations, including parties and other events, making it a peak season for businesses and companies. But with the prevailing decline in business activities at the ports, the rush that comes with the season is yet to be seen.

Jonathan Nicol, president of the Shippers Association of Lagos State, said shippers have reduced imports due to the high exchange rate of the naira to dollar, profit decline and payment of heavy taxes on imported goods.

Nicol, in a telephone conversation with BusinessDay, also referred to issues around global supply chain disruption that resulted in container shortage and an astronomical rise in the cost of freight.

“The high exchange rate is a ‘killer disease’. Most businessmen source their foreign exchange from the black market because getting from Nigerian banks is like a camel passing through the eye of a needle. It is only companies that are regular with the banks that hardly get $100,000. If you bid for $2 million, you hardly get $200,000 for shipment, and to get $2 million would probably spread through the year for the importer to get that kind of money from the bank,” Nicol explained.

He said shippers were still hoping for a further reduction in the cost of haulage especially if the government makes the roads to the ports motorable.

According to him, the construction work is seriously giving shippers problems because goods that pass through the road are not protected due to the constant falling of laden containers caused by potholes and craters.

He wants the federal ministry of works to expedite action on the ongoing construction on the Westminster to Mile-2 axis of the Apapa-Oshodi Expressway, which is causing shippers to lose their goods in transit.

Tony Anakebe, managing director of Gold-Links Investment Ltd, a clearing and forwarding firm in Lagos, said there was a significant reduction in haulage cost as moving a 40-foot container to Sango-Ota in Ogun State now costs about N600,000 as against N1,000,000 in 2020, while Tin-Can Port to Ladipo now costs N450,000.

“There is a low volume of business at the ports due to high exchange rate, freight and escalating cases of COVID-19, all of which have limited the number of people traveling abroad for business. The reduction in the gridlock on port roads also helped in reducing the cost of freight,” he added.

Emma Nwabunwanne, a Lagos-based importer, said transportation has remained stable despite the yuletide due to the decline in the volume of business at the nation’s seaport. He added that about 10 to 15 trucks now chase one container, which automatically means the price will drop.

“The volume of import has dropped and some school of thought puts the reduction rate at 50 percent. Few containers that are coming into the country right now are for the major industries and food companies like Nestle, Dangote, Unilever, Nigerian Breweries, Guinness, and other blue-chip companies that import regularly and their imports are tied to industries,” he said.

On the high cost of foreign exchange, he said industries need money to buy raw materials, and most companies that used to operate at 100 percent hardly measure up to 50 percent due to the lack of raw materials.

The zone, which is part of the initiatives by the Nigerian Ports Authority (NPA) in conjunction with Trucks Transit Parks, will upon commencement, create a space for processing export related cargoes in order to facilitate export trade and reduce the number of export trucks on Apapa roads vis-à-vis traffic gridlock.

BusinessDay understands that the idea of the Lilypond Export Processing Zone is to ensure that all export operations in terms of customs examination, document processing, verification of the vessel, and ensuring that all the terminals are ready to receive goods, will be done by the export processing zone.

Adedenuola Orimolade, operations manager, Trucks Transit Parks Ltd (TTP), who disclosed this in a recent interview with BusinessDay, said NPA identified Lilypond as an export processing zone because it was discovered that several export trucks still stay on the road waiting to go to the terminal even after exiting the pre-gate terminals.

“The concessionaire for the Export Processing Zone has started construction. They started the civil works in the segregated area within Lilypond terminal, and we believe that in the next 30 to 60 days, there should be full execution because there has been series of engagements to that effect,” he said.

According to him, the initiative will also help in ensuring that the electronic call-up system will become sustainable.

Itunuoluwa Shonibare, a truck owner, who pointed out that export cargo has been suffering, said that exporters and their truckers need a platform under the electronic call-up system to ensure seamless delivery of export containers to the port.

She further disclosed that truckers are presently running away from lifting export cargoes due to the clog in wheel of its delivery.

Recall that the NPA in March 22, 2021 suspended trucks carrying export cargoes from having access into Ports in Lagos, Apapa and Tin-Can Island Ports, for two weeks.

This, according to the authority, was due to some challenges with export cargo, which resulted in congestion being experienced within Apapa corridor despite the implementation of the electronic call-up system.

NPA noted that a lot of export trucks approach the port without completing their documentation.

Original post by https://businessday.ng/maritime/article/lilypond-export-processing-zone-to-begin-operations-in-two-months/

The Guardian learnt that new technologies such as the installation of closed-circuit cameras (CCTV) in strategic locations of the port, access control barriers, access control card readers, underground bollard system, among others have completely phased out manipulation of the system, which led to its initial collapse.

Besides, a new export-processing zone is currently under construction at Lillypond terminal in Apapa to ease the movement of export cargoes.

The Operations Manager, Truck Transit Park Limited (TTP), Adedenuola Orimolade, who disclosed this, said the new development on the port access roads was achieved in collaboration with all terminal operators, the Lagos State government and the Nigerian Ports Authority (NPA).

He said: “For example, from Lagos port complex, multiple cameras are overseeing Creek road, Warf Road and we can see what happens within the port gates. It’s also at Tin Can First gate and Second gates and the Abuja entry and exit points.

“All the truck parks are also interconnected. The CCTV does a feed from Lillypond and feeds everybody. You can also see what happens inside the Satellite truck parks among others.

“We have also deployed the access control barriers, access control card readers, and bollard. The underground bollards are to deter all forms of malpractice by the transporters. So, you cannot get into the port area without having the appropriate booking reference code. If you beat the access control barriers, you cannot beat the bollards,” he said.

Noting that the export trucks have posed a major problem in recent times, he said the cooperation of stakeholders and adherence to the policy and the time guideline would help a great deal.

He said: “The NPA has identified that within Lillypond, we should be able to create space for an export processing zone because it was discovered that a lot of trucks still stay on the road even after exiting from the pre-gate. So the process of the export-processing zone is to ensure that all export operations in terms of customs examination, verification of the vessels, and ensuring that all the terminals are ready for the cargoes. This is a good system and it will ensure that the call-up system is sustainable,”

He said the concessionaire for the export-processing zone has started construction. “They have started civil works within the segregated area within Lillypond and we expect that it will be completed in the next 30-60 days,” he stated.

Chief Operating Officer, TTP, Temidayo Adeboye, said some actions of truckers to circumvent ETO were fueled by ignorance of the gains that the new operational method would deliver to the transporters if wholly embraced.

He noted that the ‘Eto’ platform has put a stop to the extortions, which is estimated at N100 million daily before the introduction of the electronic call-up system.

Adeboye said expectations are that the problem of corruption will be tackled once there is free flow of traffic to and from the port.

“The extortion industry in Apapa is about a hundred million a day. That is what it used to be. If we can fix 50 per cent of the problem, nobody can extort money from port-bound truckers,” he said.

He disclosed that while other types of trucks have been streamlined and allocated time belts in a bid to ensure all trucks on ETO platform get into the ports within 24 hours of booking, export trucks have posed a major problem, challenging the entire project.

Adeboye who insisted that the ease of traffic in Apapa largely depends on effectively regulating the movement of export cargo and disclosed that NPA in tackling the challenge is creating export zones, stating that “until we find a solution to the export problem, we can’t get to that 24-hour entry target. The export problem is really abhorring”.

He said the cooperation of stakeholders and adherence to the policy and the time guideline would help a great deal.

“If everybody can just do the right thing, everybody will transit within 24hours. But right now, what we are seeing is a maximum of 48 hours if it is not an export container,” he said.