Findings by Shipping Position Daily have revealed that revenue losses at Nigerian seaports and airports may have exceeded N200 billion following a two-day nationwide strike orchestrated by both the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) last week.
Shipping Position Daily recalls that economic and commercial activities at the Apapa and Tin Can Island ports, along with other seaports nationwide, came to a halt on Monday as the Maritime Workers’ Union of Nigeria (MWUN) joined the nationwide strike initiated by both the NLC and TUC.
Consequently, commercial activities at the Lagos seaports were paralyzed with the Apapa and Tin Can Island port gates locked. Port users were also barred from accessing the ports, causing significant disruptions to the supply chain.
In the same vein, airport operations were grounded during the strike as aviation unions blocked all access points to domestic and international terminals.
The National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Otunba Frank Ogunojemite, argued that the two-day strike disproportionately harmed small business owners and ordinary Nigerians. According to him, the strike has accrued over N200 billion in demurrage charges.
Ogunojemite highlighted the severe impact of the power shutdown on small businesses and artisans, emphasizing that many are already struggling due to harsh economic conditions. He condemned the unions for their repeated strikes, which he alleged are driven by selfish motives.
He specifically criticized the Maritime Workers Union of Nigeria (MWUN) for joining the strike without considering the financial implications for importers, noting that shipping companies and terminal operators are unlikely to waive demurrage fees for the strike period.
The APFFLON President called on freight forwarders and maritime associations to unite and resist the NLC and TUC’s frequent calls for industrial action.
“It’s time for freight forwarders and leaderships of all maritime associations to come together to stamp their feet and resist NLC and TUC incessant calls for industrial actions. Freight forwarders should wake up and protect their livelihood, they should save their importers from incurring avoidable demurrages as a result of the strike action. Over 200 billion must have been accrued as demurrage for the two days it lasted”, Ogunojemite lamented.
Also speaking on the loss, the Domestic Airports Cargo Agents Association (DACAA) estimated that Nigeria lost approximately N7 billion during the two-day nationwide workers’ strike.
Chairman of the DACAA Board of Trustees, Mr. Ikpe Nkanang mentioned in an interview that around 30 tonnes of cargo are typically transported through the country’s domestic airports daily. According to him, transporting a kilogramme of cargo costs N300.
Nkanang explained that a significant amount of cargo had been prepared for shipment on Monday morning before the strike began. He further emphasized the impact of the strike on the air cargo industry, noting that a substantial volume of cargo accumulated over the weekend was left unshipped.
The DACAA boss described the strike as a “colossal loss” to the air cargo industry, significantly affecting both their income and the country’s economy. He however urged the Federal Government to reach an agreement with the organised labour in time to avert resumption of the strike.
In his words: “For those two days, the airlines were not working, and once the airlines are not working, cargo cannot move, and it is a great loss to all of us. You needed to see the volume of cargo that was dumped over those two days; of course, you know we gathered cargoes during the weekend hoping that by Monday and Tuesday we would be able to send them out.
“It was a colossal loss to us in the cargo world, it affected our income and, of course, the economy of the country. For those few hours of the strike, the country lost about N7 billion across all local airports,” Nkanang said.
In a chat with the Executive Secretary of the Nigerian Association of Road Transport Owners (NARTO), Mr. Aloga Ogbogo, he acknowledged the legitimacy of the strike from a labour perspective, but lamented its negative consequences on the economy.
Aloga underscored the avoidable nature of the situation, stressing that both the labour unions and the federal government should have resolved the issues long before the strike. He further explained the specific financial strain on businesses, particularly those relying on bank loans.
Aloga highlighted the broader economic implications, noting that the two-day shutdown would likely result in losses amounting to billions of Naira. He concluded by reiterating the detrimental effects on the economy and businesses, calling for proactive measures to prevent such disruptions in the future.
“We own the trucks, and our drivers belong to the NLC. They have the right to strike, just like any other worker, after following due processes. The economic activities were grounded for two days. There wasn’t light, the ports were not functioning, the tankers were not working, and the trailers also wouldn’t work. It took a downturn in our earnings and GDP.
“As an investor, it has an effect on our business. Most of the money we use in doing these businesses are loans we got from the bank, and the interest rate will accrue regardless of the strike. The bank does not recognize the strike; repayments must still be made. Shutting the economy down for two days has a significant impact. For example, industries rely on generators when there’s no electricity, and the cost of running generators on gas for two days is substantial”, Aloga noted
A member of the Importers Association of Nigeria (IMAN), Mr Ayopade Omolale stressed that the strike, which affected both the private and public sectors, led to significant economic setbacks, particularly for importers and other stakeholders.
The Importer, urged the government to comply with the labor unions’ demands, particularly concerning the minimum wage, and to ensure that the prices of goods and services do not skyrocket.
“The issue of the national grid going off was a disadvantage to everybody. Some fuel stations were not working, and banks were also closed, halting operations for those few days. It was a great loss to importers and the government.
“Some people were supposed to claim their goods, but the strike caused them demurrage. When you bring a lot of importers together, the losses will amount to billions. I can assure you that billions were lost during that industrial strike”, he stressed.
