Key players in Nigeria's maritime industry have raised a major alarm, stating that a recent approval for increased charges will make the country's seaports the most expensive in West Africa. The warning comes after the Nigerian Shippers' Council (NSC) granted permission to shipping companies and terminal operators to raise their tariffs.
Stakeholders Decry Contradiction and Rising Costs
Shippers, Customs agents, and freight forwarders argue that this move directly contradicts the Federal Government's stated objective. The Minister of Marine and Blue Economy, Adegboyega Oyetola, had previously confirmed that doing business in Nigerian ports was already 40% more expensive than in other regional ports. The government's target was to reduce this cost by at least 25% to boost competitiveness and trade facilitation.
Instead, the new hikes are projected to widen the cost gap to approximately 55%. Industry figures are now questioning the effectiveness of the partnership between the Nigerian Shippers' Council and the Federal Competition and Consumer Protection Commission (FCCPC) in regulating prices and protecting port users.
An Unsustainable Burden on Businesses
Former President of the Shippers' Association of Lagos State (SALS), Jonathan Nicol, expressed deep concern. He stated that shippers are still reeling from a previous 400% increase in terminal and shipping charges. Nicol explained that storage and terminal-related costs alone now contribute to an estimated 500% surge in total clearing expenses.
He highlighted additional financial pressures, including:
- Unclear shipping line fees that may contain disputed components.
- Documentation delays that can trigger extra charges exceeding N300,000.
- Rising operational costs, such as office rents that have jumped from N4-5 million to N9-10 million per annum.
Nicol concluded that the cumulative effect is making business projections impossible and forcing many importers to shut down.
Threats to Nigeria's Maritime Hub Status
Frank Ogunojemite, President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), criticized the NSC's decision. He argued that increasing tariffs contradicts the Council's mandate to act as a trade regulator and protector of port users' interests.
Ogunojemite warned of severe consequences, including fueling inflation, encouraging cargo diversion to neighbouring countries' ports, and weakening Nigeria's position as a regional maritime hub.
Echoing the frustration, Mr. Clinton Okoro, CEO of Globe Joy Investment Nigeria Limited, lamented that the industry has not recovered from the last major increase. He criticized the unilateral nature of the decision by service providers and recalled the controversy surrounding the previous hike.
Okoro issued a stern warning: shippers, customs agents, and freight forwarders may be forced to shut down port operations if terminal operators and shipping companies proceed with another round of increases without proper consultation. This potential action underscores the critical tension and unsustainable financial strain within the sector.
