Stakeholders Urge Tariff Review as High Costs Cripple Trade and Fuel Inflation
Concerned stakeholders in Nigeria's freight forwarding and clearing sector have issued a strong appeal to the Federal Government, urging an immediate review of the current revenue generation tariff structure. They also called for stricter enforcement of local content laws and the introduction of comprehensive policy reforms to create a more balanced and inclusive operating trade environment. The stakeholders delivered this message during a media engagement held in Lagos, warning that persistent tariff hikes are having devastating effects on the economy.
Tariff Hikes Stifling Business Operations
The stakeholders emphasized that the continuous increase in tariffs is actively stifling trade, discouraging indigenous participation, forcing businesses to cease operations, and exacerbating economic hardship across Nigeria. Speaking on behalf of the group, private practitioner Kenneth Ofurum highlighted how the current tariff regime has made it increasingly difficult for freight forwarders, logistics operators, and importers to function effectively.
"Many businesses are shutting down due to rising costs," Ofurum stated. "Government policies must be implemented with a 'human face.' The current policy approach to revenue generation has placed undue pressure on operators, which ultimately gets passed on to consumers through higher prices of goods and services, contributing directly to rising inflation."
Port Congestion and Unclaimed Cargo Surge
Ofurum further explained that the tariff hikes have led to a significant surge in unclaimed and overtime cargo at Nigerian ports. Many importers are simply unable to meet the financial demands required to clear their goods, resulting in substantial demurrage charges that are difficult to offset. This congestion not only cripples trade flow but also creates logistical nightmares and financial losses for all parties involved in the supply chain.
Systematic Sidelining of Indigenous Operators
A major concern raised by the stakeholders is what Ofurum described as the systematic sidelining of indigenous operators. He alleged that foreign interests are increasingly taking over roles traditionally reserved for Nigerians within the clearing and forwarding value chain. The industry, which spans logistics, documentation, marine services, and legal operations, has historically employed thousands of Nigerians.
"Continued neglect of local content could further worsen unemployment in our country," Ofurum warned. He stressed that critical stakeholders must be included in the design and implementation of major reforms, including digital platforms like the National Single Window and the B'Odogwu system, to avoid technical glitches that cripple trade operations.
Call for Deliberate Policies to Guarantee Local Participation
Also speaking at the event, Haruna Omolajumo, Managing Director of Harsecom Logistics Limited, underscored the urgent need for deliberate government policies that would guarantee local participation in maritime business. Omolajumo noted that in other countries, including Ghana, foreign companies are required to partner with local operators, ensuring that a significant share of business activities remains within the domestic economy.
"The absence of such structured policies in Nigeria has allowed foreign firms and concessionaires to dominate the sector, often to the detriment of local businesses," he lamented. Omolajumo also highlighted the sharp increase in port-related charges, revealing that costs which were previously within N21,000 have now escalated to about N600,000, making it nearly impossible for smaller operators to remain in business.
Balancing Revenue Generation with Trade Facilitation
The stakeholders maintained that while the government has a legitimate responsibility to generate revenue, such efforts must not undermine trade facilitation or cripple indigenous enterprises. They argued that a more balanced approach is essential to foster economic growth, protect local jobs, and control inflation. The current system, they contend, is counterproductive, driving businesses to closure and increasing the cost of living for ordinary Nigerians.
The collective call from the freight forwarding and clearing sector represents a critical plea for policy intervention. As inflation continues to rise and trade faces mounting obstacles, stakeholders believe that urgent reforms to the tariff structure and stronger local content enforcement are not just necessary but imperative for Nigeria's economic stability and future prosperity.
