Why Cargo Clearance Costs Remain High At Nigerian Ports — Stakeholders 2
By Joshua Yousouph
Stakeholders in Nigeria’s maritime industry have attributed the persistent high cost of cargo clearance at the nation’s seaports to rising operational costs, government policies, duplication of charges, poor service delivery, and lack of transparency by shipping companies and terminal operators.
The differing perspectives were presented to Shipping Position Daily newspaper last week by key players in the sector, all of whom identified various factors contributing to the increasing cost burden on importers.
Chairman of the Shipping Association of Nigeria (SAN), Mrs Boma Alabi, said the economic realities facing businesses in Nigeria have made tariff increases unavoidable for shipping companies.
According to her, shipping firms have been battling inflation, foreign exchange instability, increased labour costs, and rising operational expenses. These have forced operators to seek upward reviews in tariffs to remain sustainable, she posited.
She disclosed that some members of the association initially requested tariff increases of over 100 percent, but regulators eventually approved about 30 percent increase for some operators after negotiations.
Alabi explained that the approved increase was still below the prevailing inflation rate and insufficient to fully cover the rising costs incurred by shipping companies. She also cited the recently agreed N200,000 minimum wage for maritime workers as part of the growing financial obligations confronting operators in the industry.
The SAN Chairman argued that other regulated sectors, including telecommunications and air freight, had received significantly higher tariff increases under similar economic conditions, stressing that shipping companies should not be singled out for criticism.
She further blamed government policies and increasing port-related charges for worsening the situation, warning that rising costs at Nigerian ports could reduce the competitiveness of the country’s ports against neighbouring West African ports in Benin Republic, Ghana and Togo.
Similarly, the Managing Director of Ports and Terminal Multiservices Limited (PTML), Mr Tunde Keshinro, attributed the high cost of cargo clearance to the rising cost of doing business in Nigeria and the need for terminal operators to maintain efficient port services.
According to him, terminal operators had absorbed increased operational costs for years, due to delays in approving tariff reviews, despite inflation and the sharp rise in the cost of providing services since 2023.
Keshinro explained that exchange rate fluctuations, increased government taxes and duties, infrastructure costs, insurance, security requirements, and other operational expenses had significantly increased the cost of terminal operations.
He maintained that tariff adjustments were necessary to sustain efficient services such as secure cargo handling, reduced cargo theft and damage, faster cargo processing, and safer terminal operations.
The PTML boss added that many hidden operational costs associated with trade and cargo handling are often overlooked by stakeholders criticizing terminal charges.
Also speaking, the Group Head of Corporate Communications at SIFAX Group, Mr Muyiwa Akande, identified foreign exchange volatility, multiple government agencies, and manual cargo examination processes as major contributors to the high cost of cargo clearance at Nigerian ports.
According to him, the unstable foreign exchange rate continues to affect the cost of port and shipping operations, leading to higher charges for importers and other port users.
Akande also blamed the presence of multiple government agencies operating at the ports for creating operational bottlenecks and additional costs within the cargo clearing process.
He further pointed out that the continued reliance on manual cargo scanning and examination procedures cause delay in cargo clearance, resulting in prolonged storage periods and increased storage charges for importers.
However, importers and customs agents have continued to accuse shipping companies and terminal operators of exploiting importers through excessive and duplicated charges.
South West Chairman of the Importers Association of Nigeria (IMAN), Joseph Ajoku, blamed the high cost of cargo clearance on continuous arbitrary increases in charges and the absence of transparency in the shipping process.
Ajoku alleged that shipping companies often announce increments without presenting clear templates or detailed breakdowns to justify the additional charges. According to him, importers are the ultimate victims because every increase introduced by shipping companies and clearing agents is eventually transferred to them.
He further claimed that cargo clearance at Apapa Port is significantly more expensive than at other ports, revealing that some importers save between N3 million and N4 million per container when clearing goods outside Apapa.
Ajoku also faulted the fragmentation among freight forwarders, saying multiple groups claim to represent importers, without effectively protecting their interests.
On his part, the National Publicity Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Emmanuel Onyeme, accused shipping companies of poor service delivery and exploitative practices that increase the cost of clearing cargo. He alleged that shipping companies use trucks as temporary holding bays for containers while still charging demurrage against importers and agents.
According to Onyeme, truckers are sometimes denied access to return empty containers at terminals such as TICT, MSC, and Five Star, yet demurrage charges continue to accumulate during the delays. He also condemned delays in processing refunds, stating that shipping companies sometimes take between three and four months to refund money belonging to importers and agents.
The ANLCA spokesman further criticized what he described as duplication of charges, particularly regarding Telex Release fees. According to him, importers already pay between $45 and $50 abroad for Telex Release documentation, only to be charged an additional N12,500 in Nigeria by the same shipping companies.
He described the practice as unfair and exploitative, stressing that stakeholders remain willing to engage operators to resolve the issues affecting trade facilitation at the ports.
