Importers Divert from Nigerian Ports Amid Escalating Charges

In recent weeks, Nigerian importers have increasingly redirected their cargo to neighbouring West African ports in Ghana, Togo, and Benin. This shift is primarily due to a significant rise in port charges within Nigeria, which has made cargo clearance prohibitively expensive for many businesses. The Lagos port, once a bustling hub, has experienced a notable decline in activity as a result.

Escalation of Port Charges

The Nigerian Ports Authority (NPA) recently announced a 15% increase in port tariffs, the first adjustment since 1993. This decision aims to fund critical infrastructure upgrades and modernise equipment to enhance competitiveness. NPA’s Managing Director, Dr. Abubakar Dantsoho, emphasised the necessity of this increase, citing the urgency to address aged infrastructure and expand port capacity. 

However, this official hike is just one aspect of the rising costs. Reports indicate that multiple government agencies, terminal operators, and shipping companies have collectively raised their fees by nearly 100% within a month. Consequently, the cost of clearing a 40-foot container has surged from approximately ₦18–20 million to about ₦26 million, while a 20-foot container now costs ₦20 million, nearly double the previous ₦10.5 million.

Impact on Nigerian Businesses

The Manufacturers Association of Nigeria (MAN) has expressed deep concern over these developments. MAN’s Director-General, Segun Ajayi-Kadir, warned that the increased port charges, combined with other levies from the Nigeria Customs Service, could severely impact businesses. He highlighted that the manufacturing sector is already grappling with numerous challenges, and additional financial burdens could exacerbate inflationary pressures and reduce the competitiveness of locally produced goods. 

Nigeria has historically been a central hub for West African trade, with its ports handling a significant portion of the region’s cargo. However, the recent surge in operational costs is prompting importers to seek more cost-effective alternatives in neighbouring countries. This trend not only undermines Nigeria’s position in regional commerce but also raises concerns about the broader economic implications, including potential revenue losses and job impacts within the port and logistics sectors.

While the NPA’s intention to modernise port infrastructure is commendable, the immediate financial strain on importers and manufacturers cannot be overlooked. Balancing necessary infrastructural investments with the economic realities of businesses is crucial. Collaborative discussions between government agencies, port authorities, and industry stakeholders are essential to develop sustainable solutions that enhance port efficiency without driving away vital trade activities.