Former Acting President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto, has decried the arbitrary charges imposed by cargo consolidators in the maritime sector, urging the Nigerian Shippers’ Council (NSC) and the Ministry of Marine and Blue Economy to take decisive action.
Addressing journalists in Lagos on Wednesday, Farinto highlighted the exploitative practices of consolidators, particularly Associated Port and Marine Development Company (APMDC), and their adverse impact on the industry.
Farinto explained that cargo consolidation, commonly referred to as groupage, involves combining goods from multiple shippers into one container. While the practice is essential for cost-effective shipping, he noted that some consolidators impose exorbitant and unregulated charges on cargo owners, which he described as extortionate and detrimental to the Nigerian economy.
Using a consignment of an elevator meant for a church project as a case study, Farinto detailed his experience with APMDC. The elevator, occupying 10.6 cubic meters (CBM) in a 20-foot container, incurred consolidation charges amounting to ₦3,117,368. He explained that APMDC charged ₦270,172 per CBM for consolidation, along with additional documentation and VAT charges. Further, the company issued a separate debit note of ₦438,223 for terminal-related fees, bringing the total charges for the consignment to over ₦3.5 million according to documents sighted by our correspondent
Farinto lamented that “These charges are outrageous. For a 20-foot container, even in a standard terminal, you cannot pay more than ₦1 million for all charges, including terminal fees and shipping costs,” Farinto asserted.
He further criticized the lack of transparency in determining these charges, stating that there should be a standard operating procedure in line with the concession agreement. “Where do these consolidators get their charges from? Who regulates them? The Nigerian Shippers’ Council is aware of these exploitative practices, yet no concrete action has been taken,” he added.
Farinto also cited a similar case involving Sharafa Shipping, where the company charged ₦165,220 per CBM for a consolidated consignment, along with separate terminal charges. He emphasized that these arbitrary charges inflate the overhead costs of imports, which are ultimately passed on to Nigerian consumers.
The former ANLCA leader called on the Nigerian Shippers’ Council, as the economic regulator, to protect Nigerian shippers by addressing the issue of arbitrary charges. He demanded sanctions against APMDC for alleged exploitation of shippers and failing to communicate effectively with clients during a prolonged closure of its terminal by the Nigerian Customs Service over alleged infractions.
“The closure of the terminal affected numerous project cargoes, including the elevator meant for a church project, which could not be installed on time due to the delay. Yet, APMDC did not apologize or offer explanations to its clients. Instead, they continued to impose illegal charges,” Farinto lamented.
He also warned shippers and importers to be cautious when engaging cargo consolidators, urging them to verify the credibility of terminal operators and shipping companies.
He further highlighted the importance of addressing these issues to ensure the success of the African Continental Free Trade Agreement (AfCFTA), where the role of cargo consolidators will be critical.
He concluded by urging the Ministry of Marine and Blue Economy to intervene and prevent these exploitative practices from becoming a systemic menace in Nigeria’s maritime sector. “We must act now to protect importers and ensure that cargo consolidation serves its intended purpose of reducing costs rather than becoming a tool for exploitation,” he stated.
