Seaport Decentralisation Policy and Regional Development: Lessons for Nigeria

Abstract

This study investigates the strategic relationship between seaport decentralisation policies and balanced regional development, offering a critical analysis of its implications for the Nigerian maritime sector. Utilizing a robust theoretical framework anchored in Fiscal Federalism and New Economic Geography (NEG), the research explores how the devolution of port authority can dismantle “core-periphery” bottlenecks and foster new economic growth poles. The study demonstrates that centralisation leads to catastrophic diseconomies, such as the chronic congestion currently stifling the Lagos maritime corridor. Through a comparative analysis of international best practices, the paper highlights successful models from the United States, Germany, and China, where local autonomy has catalyzed specialization and competitive efficiency. A critical evaluation of Nigeria’s 2006 port concessioning reveals that while private-sector participation improved, the systemic reliance on a centralized administrative monopoly persists, leaving Eastern and Delta ports underutilized. The findings suggest that for Nigeria to leverage its 853km coastline effectively, it must transition toward a “Landlord” governance model. The paper concludes with specific policy recommendations, including comprehensive legislative reform of the Nigerian Ports Authority Act, strategic infrastructure investment in hinterland rail connectivity, and targeted incentives for private-sector participation. Implementing these reforms will unlock the dormant economic potential of sub-national regions, ensuring long-term maritime security and national prosperity.