Shipping operators have raised concerns over rising port charges in Nigeria and warned that excessive costs will push businesses to neighbouring countries.
Following a 15 percent increase in port and marine fees by the Nigerian Ports Authority (NPA), berthing charges for vessels at Nigerian ports have surged from $150,000 to approximately $200,000, according to the Shipping Agencies, Clearing and Forwarding Employers Association (SACFEA).
Addressing journalists in Lagos over the weekend, SACFEA Chairman Boma Alabi, who compared berthing fees across several ports, said Tema Port in Ghana charges $15,000, Shanghai $21,000, Lome Port $26,000, Cotonou Port $27,000, Singapore $29,000, and Abidjan $60,000.
She said the sharp increase in operational costs has made Nigerian ports less attractive to international shipping firms.
“The cost of doing business at Nigerian ports is significantly higher than in neighboring countries, making it difficult to compete. This is why many importers and exporters are diverting their cargo to ports like Cotonou and Lome, where charges are more affordable,” Alabi stated.
She cited a 2024 report by NPS Meridian Port Services Limited, which revealed that Tema Port in Ghana handles 1.9 million TEUs (Twenty-Foot Equivalent Units) annually, while Nigerian ports process only 1.2 million TEUs per year.
According to her, the disparity showed the need for a strategic review of port charges to enhance Nigeria’s standing in the regional shipping industry.
Alabi further noted that the rising cost of container shipments has worsened the situation, stating that a 20ft container, which previously cost N55,000, now costs N145,000, while a 40ft container has risen from N100,000 to N290,000, excluding additional port and logistics fees.
“The indirect taxation imposed through various charges at the ports is making the business environment increasingly unfriendly. Investors are looking for better returns, and they will go where costs are lower,” she added.
The call for a tax review was echoed by the Deputy Managing Director of CMA CGM Nigeria, Ramesh Saraf, who pointed out that despite the huge international investment in the Lekki Deep Sea Port, trans-shipment activities remain limited due to high operating costs.
“Lekki Deep Sea Port started operations in April 2023 at less than half its capacity, and now, even fewer activities are taking place. The cost of operations at Lekki is nearly three times higher than port charges in other countries,” Saraf said.
He further noted that with the recent 15 percent increase in port and marine fees, trans-shipment costs in Nigeria have risen to more than three times the rates in competing ports.
As a result, many importers and exporters are rerouting their cargo through Ghana and Cotonou, where costs are lower, and then finding alternative means of bringing goods back into Nigeria.
Industry stakeholders have urged the government to engage with shipping operators to review port charges in line with international best practices.
They argue that reducing costs will not only attract more cargo traffic but also boost government revenue and create more job opportunities in the maritime sector.
“If port charges are adjusted to competitive levels, cargo throughput will increase, leading to higher revenue and more employment for Nigerian youths,” Alabi stated.
With global shipping firms increasingly looking for cost-effective routes, experts warn that failure to address the high cost of doing business at Nigerian ports could result in further revenue losses and a decline in the country’s maritime influence in the West African region.
