Importers sending goods to Nigeria are increasingly bypassing the country’s ports and turning to other West African nations to avoid soaring port charges. In less than a month, multiple government agencies, terminal operators, and shipping companies have implemented fee hikes of nearly 100%, making cargo clearance prohibitively expensive for businesses.
The Lagos port, Nigeria’s busiest maritime gateway, has seen a sharp decline in activity, raising concerns about the country’s ease of doing business. The Guardian Nigeria reports that clearing costs at Nigerian ports have surged, with the cost of processing a 40-foot container rising from N18–20 million to N26 million. Similarly, the price of clearing a 20-foot container has almost doubled from N10.5 million to N20 million.
As a result, Nigerian ports are rapidly losing their competitive edge, forcing importers to shift operations to Ghana, Togo, and the Benin Republic. This shift threatens Nigeria’s historical role as the primary hub for West African-bound cargo. According to Nigerian Ports Authority (NPA) Managing Director, Dr. Abubakar Dantsoho, the country’s ports now handle fewer than two million Twenty-Foot Equivalent Units (TEUs), even though Nigeria is the intended destination for 70% of trade in the region.
Dr. Dantsoho noted that the decline in cargo traffic is directly linked to excessive charges, inefficient port operations, and poor infrastructure. He warned that if immediate reforms are not implemented, Nigeria risks losing its position as a maritime powerhouse in West Africa.
In response to these concerns, the Nigerian Ports Authority recently announced a 15% increase in port charges, marking its first tariff adjustment since 1993. The move, spearheaded by Dr. Dantsoho, aims to enhance competitiveness and drive infrastructural development, aligning NPA’s facilities with global standards. He explained that the tariff hike was necessary to modernize outdated port infrastructure, improve equipment, and expand capacity to boost efficiency and competitiveness.
Dr. Dantsoho emphasized that the NPA relies on operational revenue to fund critical initiatives such as infrastructure upgrades, channel dredging, safe navigation, modern marine craft procurement, digital automation, port security enhancements, energy efficiency projects, and staff training. The 15% upward review, applicable to all NPA rates and dues, underscores the authority’s commitment to maintaining optimal performance and transforming Nigeria’s ports into world-class facilities.
However, the decision has been met with resistance from key stakeholders. Nigerian manufacturers, in particular, have pushed back against the NPA’s tariff increase, warning of its potential economic consequences. The Manufacturers Association of Nigeria (MAN) argues that the hike will drive up production costs, leading to higher inflation and making locally manufactured goods less competitive.
MAN’s Director-General, Segun Ajayi-Kadir, criticized the timing of the increase, pointing out that businesses are already grappling with high operational costs, a volatile foreign exchange market, and rising energy expenses. “The Nigerian manufacturing sector is facing immense challenges. Increasing port charges at this time will further strain businesses, reduce their competitiveness, and lead to job losses,” he warned.
Ajayi-Kadir stressed that imposing additional financial burdens on manufacturers would only worsen the challenges faced by the real sector, making it harder for businesses to survive in an already difficult economic climate. He called on the government to reconsider the decision and explore alternative means of funding port infrastructure projects without stifling trade and investment.
Other stakeholders share these concerns, arguing that the increased port charges, combined with the recent introduction of a 4% Free On-Board (FOB) charge on imports by the Nigeria Customs Service, will have devastating effects on businesses. Importers fear that these cumulative cost increases will make Nigerian ports even less attractive, further driving trade to neighboring countries.
Many businesses have already started rerouting shipments through Ghana’s Tema Port, the Port of Lomé in Togo, and the Cotonou Port in Benin, where fees and bureaucratic bottlenecks are significantly lower. Logistics firms report a sharp rise in requests to divert goods to alternative West African ports, with some importers opting to transport goods by land into Nigeria rather than face high port charges.
Industry analysts warn that if the trend continues, Nigeria’s port revenue will suffer significant losses, further impacting government revenue and employment within the maritime sector. The Nigeria Employers’ Consultative Association (NECA) has also voiced concerns, stating that high port charges will make it difficult for local businesses to compete with foreign goods, potentially leading to an influx of smuggled products through unofficial routes.
NECA’s Director-General, Adewale Oyerinde, urged the government to engage stakeholders in dialogue before implementing drastic policy changes. “The maritime sector plays a crucial role in Nigeria’s economy. Policies that make it more expensive for businesses to import goods will not only reduce trade volumes but will also drive investment away from the country,” he stated.
The increasing shift of trade away from Nigerian ports has also raised alarm among clearing agents and freight forwarders, who rely on high cargo volumes for their livelihoods. Many have reported a decline in business activity, with some operators being forced to lay off staff due to reduced demand for their services.
Shipping companies are also feeling the impact, with some reconsidering their routing strategies to avoid the rising costs associated with Nigerian ports. A senior executive at a major global shipping line, speaking anonymously, stated that the company is reviewing its port calls in West Africa. “We are closely monitoring the situation in Nigeria. If the cost of doing business becomes unsustainable, we may have to shift more operations to other regional ports,” he revealed.
Meanwhile, economic experts have urged the government to balance revenue generation with trade facilitation, warning that excessive charges will only drive businesses away. Professor Adesoji Adesina, an economist at the University of Lagos, noted that while port modernization is necessary, the government must ensure that reforms do not stifle trade.
“There is a delicate balance between improving infrastructure and maintaining a competitive business environment. The government must find ways to finance port development without making it difficult for businesses to operate,” he advised.
As the debate over port charges intensifies, all eyes are on the federal government and the Nigerian Ports Authority to see whether they will reconsider the fee hikes or introduce measures to mitigate their impact. For now, importers, manufacturers, and other industry players remain deeply concerned about the long-term implications of the current policies on Nigeria’s economy and trade competitiveness.
