Importers have increasingly turned away from Nigerian ports, opting instead for ports in Benin, Ghana, Togo, and Burkina Faso, as shipping lines hike tariffs and terminal charges soar. The rising costs, poor service delivery, delays in refunding container deposits, and other financial irregularities have collectively amounted to billions of naira in losses for the sector.
IMAN Condemns Arbitrary Increases
The Board of Trustees of the Importers Association of Nigeria (IMAN), during a press briefing in Lagos yesterday, strongly criticized what it described as arbitrary increases in shipping and terminal charges. These hikes were implemented without adequate consultation with importers and other stakeholders, despite ongoing operational deficiencies and declining service delivery standards among multinational shipping lines operating in Nigeria.
No Service Improvement Justifies Hike
Joseph Ajoku, Chairman of IMAN's Southwest zone, emphasized that there has been no significant improvement in services to justify another increase, especially since the last tariff review occurred just two years ago. He compared Nigeria's port charges with those of neighboring West African countries, highlighting that cargo clearance costs in Benin, Ghana, Togo, and Burkina Faso are substantially lower.
According to IMAN, clearing a 20-foot container at ports in Benin Republic costs between N7 million and N8 million, whereas the same process at Apapa Port in Lagos ranges from N14 million to N15 million. For a 40-foot container, the cost in Benin Republic is approximately N13 million to N14 million, compared to N19 million to N20 million at Apapa.
Impact on Business and Economy
Ajoku warned that the escalating cost of doing business at Nigerian ports continues to drive importers to divert cargoes to neighboring countries, where charges are lower and service delivery is more efficient. He also raised concerns about alleged infractions by shipping lines, including delays in refunding container deposits, imposition of unapproved charges, and other financial irregularities that amount to billions of naira.
Aliyu Yaradua, National Secretary General of IMAN, argued that importation activities play a critical role in sustaining Nigeria's economy. He stressed that any policy discouraging importers would ultimately reduce government earnings and slow economic growth. Yaradua lamented that many importers are already unable to clear their consignments due to the high exchange rate and mounting port charges, leading to prolonged cargo stays at the ports and the risk of overtime cargo auctions.
Appeal for Leniency
Yaradua appealed to the Nigeria Customs Service to exercise leniency in handling overtime cargo, noting that several importers borrowed funds at high interest rates to finance their businesses and are now struggling to survive amid rising operational costs.
