The Registrar of the Council for the Regulation of Freight Forwarding in Nigeria, Kingsley Igwe, has said Nigeria stands to reduce port and logistics costs by 14 per cent and improve operational efficiency by up to 60 per cent through the adoption of smart port systems.
Igwe made this known while delivering a keynote address at the 6th edition of the JournalNG Port Industry Town Hall Meeting in Lagos over the weekend..
He noted that global benchmarks indicate that smart ports can reduce operational costs by about 14 per cent in ideal environments, adding that Nigeria could achieve similar savings with a transition to technology-driven port operations.
“Global statistics have shown that smart ports can reduce the cost of port operations by 14 per cent. From my experience as both a practitioner and regulator, if Nigeria advances into a smart port system, total port and logistics costs will drop by 14 per cent, while efficiency could improve by as much as 60 per cent, particularly through reduced labour costs,” he said.
Igwe explained that personnel expenses account for between 60 and 70 per cent of operational costs in most organisations, making automation and digital systems critical for cost reduction and improved productivity.
He described smart ports as technology-enabled ecosystems driven by automation, data analytics, artificial intelligence, and integrated infrastructure designed to minimise manual processes and enhance efficiency.
According to him, Nigeria’s port operations remain heavily reliant on outdated infrastructure and manual procedures, resulting in high logistics costs, inefficiencies, and delays across the supply chain.
The CRFFN Registrar stressed that modern port systems require advanced infrastructure, smart operating platforms, and asset management tools capable of detecting risks and operational issues in real time.
He identified key technologies underpinning smart ports to include artificial intelligence, the Internet of Things (IoT), blockchain, big data analytics, and high-speed internet connectivity.
Igwe also emphasised the need for 24-hour port operations, noting that limited working hours contribute to increased cargo dwell time, higher storage charges, and inefficiencies.
He added that adopting smart port systems would enhance cargo predictability, reduce vessel waiting time, improve cargo tracking, and strengthen Nigeria’s competitiveness in global trade, while also boosting its ranking on the global Logistics Performance Index.
In a related development, the Public Relations Officer of the Tin Can Island Port Command of the Nigeria Customs Service, Oscar Ivara, disclosed that the Service is nearing full automation as part of efforts to support smart port operations.
Ivara, who represented the Controller of the Command, Frank Onyeka, said the Service has adopted several global trade facilitation tools, including Advance Ruling, Time Release Studies, and the National Single Window initiative, noting that operations are already about 90 per cent automated.
He explained that the deployment of modern platforms such as the B’Odogwu system has improved cargo clearance efficiency by enabling remote processing of transactions and faster service delivery.
According to him, the Customs Service is also implementing a SMART Customs framework focused on security, measurement, automation, risk management, and technology integration across its operations.
Ivara highlighted initiatives such as the Authorised Economic Operator programme, risk-based cargo selectivity, satellite surveillance at border posts, and continuous training for officers as part of efforts to optimise cargo clearance and strengthen national security.
He added that these measures are aimed at positioning the Nigeria Customs Service to effectively support a fully digital, technology-driven port ecosystem in the country.
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