By Joshua Yousouph
The Association of Bonded Terminal Operators of Nigeria (ABTON) has raised concerns over the declining fortunes of indigenous bonded terminal operators, warning that the nation’s maritime industry is facing massive job loss as more than 40 bonded terminals in Lagos and environs operate far below capacity.
The General Secretary of ABTON, Haruna Omolajomo, made the disclosure in an exclusive interview with Shipping Position Daily last week, where he painted a grim picture of the state of indigenous bonded terminals, many of which he said are struggling to survive despite huge investments in infrastructure.
According to Omolajomo, there are over 40 indigenous bonded terminals spread across Lagos and Ogun States, but only a handful are functioning at reasonable levels. He attributed the situation to what he described as unfavourable government policies, limited cargo allocation to bonded terminals, and the growing dominance of port concessionaires in the cargo logistics chain.
“We have over 40 indigenous bonded terminals in Lagos and Ogun States. Out of that number, only about four or five are operating above 20 per cent capacity. Others are performing below five per cent capacity, while some are close to total collapse,” he said.
Omolajomo warned that the continued underutilisation of indigenous bonded terminals is costing the country significant employment opportunities. According to him, many concessionaires have expanded beyond their traditional roles into cargo clearance, logistics and door-to-door delivery services, thereby taking over business opportunities that ordinarily would have been handled by indigenous operators.
He alleged that while foreign operators continue to reap substantial profits from Nigeria’s maritime sector, indigenous terminal operators who invested heavily in port infrastructure are being sidelined. “By denying these indigenous bonded terminals the opportunity to operate, directly or indirectly, Nigeria is losing close to 10 million jobs that are supposed to be done by Nigerians,” he stated.
The ABTON scribe disclosed that many bonded terminal owners borrowed billions of naira to develop facilities after the port concession programme, expecting increased cargo transfers from the seaports. However, most of those investments have remained underutilised.
He noted that despite the low volume of business, operators are still expected to meet stringent regulatory requirements.
According to him, bonded terminal operators are required to maintain a ₦100 million cash-backed Customs bond for license renewal, in addition to paying annual license fees, staff salaries, power costs and multiple taxes imposed by federal, state and local government authorities.
Omolajomo described many bonded terminals as being reduced to “glorified agents,” surviving mainly on occasional container transfers and handling of empty containers rather than carrying out their core functions as inland cargo processing centres.
“Customs expects you to maintain a cashable bank bond of ₦100 million that you cannot touch. Yet many operators cannot even make between ₦5 million and ₦10 million profit annually. You still have to pay salaries, run generators, maintain infrastructure and comply with regulatory obligations,” he said.
While acknowledging that government revenue generation has improved significantly, particularly through the Nigeria Customs Service, he argued that indigenous operators have not benefited from the growth. He pointed to recent efforts by the Federal Government to increase Customs’ revenue targets, saying the development demonstrates improved revenue collection but does little to address the plight of local terminal operators.
The ABTON General Secretary also renewed calls for stronger local content policies in the maritime industry, urging the Federal Government to reserve a percentage of cargo traffic for indigenous bonded terminals.
Drawing comparisons with countries such as Ghana and South Africa, he argued that deliberate local content measures have helped indigenous operators in those countries remain competitive and contribute significantly to their economies.
He maintained that bonded terminals remain a critical component of modern port operations worldwide, noting that they are internationally recognised facilities designed to decongest seaports and facilitate the efficient movement of cargo.
According to him, the concentration of cargo activities within the nation’s seaports, rather than distributing them to inland facilities, contributes to recurring congestion and inefficiencies in the logistics chain.
Omolajomo therefore urged the Federal Government to review existing policies governing cargo allocation and port operations, insisting that greater participation of indigenous bonded terminal operators would not only protect local investments but also create jobs and stimulate economic growth.
