Stakeholders in Nigeria’s maritime and trade sectors have raised alarm over the persistent high cost of doing business, attributing it to freight rate disparities, inefficient port operations, and multiple regulatory bottlenecks. From delays in cargo clearance to rising transit levies and poor infrastructure, industry voices including shippers, exporters, and importers are calling for urgent reforms to address the structural challenges crippling Nigeria’s trade competitiveness.
Shipping Position Daily recalls that recently, the Nigerian Shippers’ Council (NSC) advocated better treatment for Nigerian shippers operating in foreign countries. Dr Pius Akutah, Executive Secretary of the Council, made the call during a recent courtesy visit to the Minister of Foreign Affairs, Mr Yusuf Tuggar in Abuja.
Akutah emphasised the need for fairer treatment of Nigerian shippers abroad, especially in countries with strong trade ties to Nigeria. He called for the establishment of liaison desks in Nigerian embassies to support shippers and resolve challenges faced during international operations.
In a chat with Shipping Position Daily last week, immediate past President of the Shippers Association Lagos State (SALS), Reverend Jonathan Nicole praised the Executive Secretary of the Council for stepping forward to provide much-needed support and visibility to Nigerian shippers operating abroad describing the move as “bold, commendable, and long overdue.”
Rev Nicole spoke on the importance of strengthening Nigeria’s external trade relations. He stressed that shippers should be empowered to conduct business across borders with ease, free from bureaucratic and systemic hurdles.
The former SALS president also added that Nigerian shippers are ready to engage in constructive discussions on trade charges and policies affecting their operations. “We are preparing ourselves to take on the discussions of trade charges, which is our right,” he stated.
Nicole concluded with a call to further strengthen support systems for Nigerian shippers, viewing their progress as critical to the nation’s future. “We will help build the shippers in Nigeria, which is an example for the future. We are not sleeping. We are watching the terrain. The knowledge foundation being laid will help to make it a reality, not about today; it’s about the future.” Rev. Nicole said.
Also speaking, a prominent cross-border exporter and Chief Executive Officer of Hallmark Investment, Alhaji Nofiu Inaolaji raised concerns over the growing challenges facing cross-border trade in Nigeria, with particular emphasis on the burdensome transit levies, insecurity, and the persistent poverty in border communities.
Speaking about his assessment tour in Saki, Oyo State, Alhaji Inaolaji said he identified the imposition of transit levies as one of the most pressing problems affecting exporters. He further pointed out that recent border closures and strained trade routes between Nigeria and Niger have compounded the situation.
According to him, despite acknowledgment of these challenges by the Comptroller-General of the Nigeria Customs Service; Adewale Adeniyi, there has been little tangible action from the government. Alhaji Inaolaji emphasized that the challenges confronting exporters are not insurmountable, but require deliberate and inclusive policy responses. Chief among these, he noted, is the need to address insecurity around Nigeria’s border corridors.
The exporter also linked the worsening insecurity to endemic poverty in border regions suggesting that any lasting solution must tackle the root causes of unrest and illicit activities in these areas.
“Most of the challenges we are facing, we have transit levy. That’s the biggest problem we are facing. The government is not doing the proper thing that’s supposed to be done. Security is one of the huge problems. And for the government to succeed in resolving the issue of security, the border communities must be involved in decision-making,” Alhaji Inaolaji advised.
An Importer and business owner at the Alaba International Market, Mr Emmanuel Arinze decried the multiple challenges faced by traders and business owners, ranging from poor implementation of the currency swap policy to delays in cargo movement, inconsistent government policies, and rampant corruption within the importation system.
Arinze highlighted that the currency swap arrangement, particularly with China, if well managed, has the potential to ease the burden on Nigerian importers. “If this currency swap works well, many of us may not need to source for dollars anymore, especially when dealing with China,” he said.
However, the importer described the present reality as far from ideal, pointing out that the swap policy has not been fully beneficial, due to ongoing issues like lack of access to foreign exchange and a complicated cargo clearance process. He further emphasized that Nigeria’s importers continue to grapple with inconsistent policies by regulatory agencies.
Arinze also expressed deep concern about the state of infrastructure and logistics, especially with movement of goods within the country. According to him, a trip that should ordinarily take one hour, could extend to an entire day; due to port congestion and roadblocks. He concluded by urging government agencies to address these issues holistically, noting that reforms must go beyond rhetoric.
On his part, Rev. Nicodemus Odolo, a member of the Board of Trustees of SALS, raised alarm over the persistent high cost of doing business in Nigeria’s maritime sector, blaming it on freight rate disparities, inefficient port operations, and numerous regulatory bottlenecks.
Rev. Odolo decried the challenges faced by Nigerian importers and exporters, especially in comparison to other West African nations, stressing that this trend defies standard business logic which dictates that an increase in cargo volume should reduce freight costs. He attributed this anomaly to poor representation of Nigerian interests by relevant authorities.
Odolo further pointed out that Nigeria’s dependence on transshipment routes—especially for cargo from countries like China, results in extended delivery times. Highlighting the broader economic impact, he explained that long delivery timelines negatively affect trade cycles.
On the issue of exports, Rev. Odolo lamented the excessive bureaucracy exporters’ face. He called for the adoption of more efficient clearance processes, such as automated cargo scanning, to speed up cargo movement and reduce human interference.
