MACN – Nigeria

Background and Rationale

MACN identified Nigeria as one of the most challenging countries to do business in. Corrupt demands posed a major risk to its Members. Companies faced cases of extortion, harassment, and threats of violence. Moreover, regulations and procedures in ports were lacking in detail and consistency, giving authorities wide discretionary powers. 

MACN’s Strategy

Since 2012, MACN has implemented a collective action initiative to reduce corruption in the port sector in Nigeria. MACN’s strategy aims to have a long-lasting impact and has focused on conducting a comprehensive risk assessment, engaging with stakeholders, implementing actions to improve transparency and governance, and driving institutionalization and capacity building to combat corruption in the Nigerian port sector. 

• Root Cause Analysis: A comprehensive risk assessment was conducted to identify specific forms of corruption, underlying drivers, and actions to address root causes across six ports. This led to the recommendation of an integrity plan.  
• Integrity Reform: MACN has been working with local stakeholders from the private and public sectors to implement the actions identified in the assessment and build a robust solution landscape. This includes the development of tools, procedures, and mechanisms with the aim to improve transparency, strengthen governance frameworks and increase the ease of doing business in Nigerian ports and terminals. 
• Institutionalization: MACN has pushed for the institutionalization of the solution landscape by anchoring activities within government agencies and building capacity for compliance functions of port agencies. The aim is to ensure the implementation of the Nigerian Ports Process Manual (NPPM), compliance with Standard Operating Procedures (SOPs), and boost enforcement activities for non-compliance to promote integrity in Nigeria’s maritime sector.  

Outcomes and Impact

The anti-corruption solutions adopted by the Nigerian government are the result of several years of engagement with the Vice President’s Office and key governance agencies by MACN and CBi.  

Outcomes include: 

• Anti-Corruption Toolkit: MACN and CBi contributed to the development of anti-corruption measures including the SOPs, the Port Service Support Portal (PSSP), the NPPM, and the establishment of a Grievance Mechanism. 
• High-Level Support: The Federal government provided significant support through the Vice President’s involvement which facilitated the development of the Anti-Corruption Toolkit, indicating a commitment to combat corruption at the highest level.  
• HelpDesk Implementation: MACN launched and operationalized the HelpDesk, which complements the PSSP. The HelpDesk enables port users to report and track incidents of corrupt demands. This initiative has increased stakeholder capacity for anti-corruption management and reduced the cost of doing business. 
• Ensuring Compliance: The Port Standing Task Team ensures full implementation of the NPPM and compliance with SOPs. It promotes integrity in Nigeria’s maritime sector by dismantling corruption networks at the ports and terminals. 
• Legislation to Institutionalize Reforms: Executive Order No 001 of 2017 on the Ease of Doing Business became law in February 2023. This legislation requires all government agencies, including port agencies, to publish their SOPs, application procedures and timelines, redress mechanisms, and consequences for process delays. It aims to institutionalize ongoing reforms and promote transparency. 

• International Recognition: The project has received international recognition and won the Anti-Corruption Collective Action Award 2022 for Outstanding Achievement. 

The development of a results-based solution landscape has empowered the private sector and reduced the risk and associated costs to vessels and companies. The usage of the HelpDesk and the Nigerian PSSP has increased over time. The illustration below shows pre-arrival notifications (i.e., the vessel is calling a Nigerian port). Please note that a pre-arrival notification does not indicate a corrupt demand. Since the launch of the HelpDesk over 800 pre-notification arrivals have been processed through the system. 

Prior to the HelpDesk operation, case resolution took up to 7 – 10 days. Since 2021, vessels reported an average case resolution time of 1 – 8 hours. For a shipowner, the operational costs (staying in port, being delayed, processing paperwork) have therefore been reduced from approximately USD150,000 – USD20,000 per port call.