The Shipping Association of Nigeria (SAN) has raised concerns that excessive port charges are making Nigerian ports uncompetitive, forcing businesses to redirect cargo shipments to neighboring countries with lower costs.
This trend is putting Nigeria at a disadvantage, reducing trade volumes, and weakening its position as a regional maritime hub.
Speaking at a press conference in Lagos, SAN Chairman Mrs. Boma Alabi emphasized that the escalating cost of doing business in Nigerian ports is discouraging shippers and attracting cargo to smaller nations like Ghana, Benin, and Togo, where operational expenses are significantly lower.
Alabi, who also leads the Shipping, Shipping Agencies, Clearing, and Forwarding Employers Association, noted that ports in Cotonou and Lomé impose fewer charges, making them more attractive alternatives for businesses seeking cost-effective logistics solutions.
To illustrate the disparity, Alabi pointed out that vessel berthing charges at Tema Port in Ghana stand at $15,000, while Nigerian ports demand a staggering $150,000, a figure that has now risen to $200,000 following the Nigerian Ports Authority's (NPA) recent 15% tariff increase.
Similarly, shipping a 20-foot container in Nigeria has surged from N55,000 to N145,000, while a 40-foot container now costs N290,000, compared to its previous rate of N100,000—all before additional port and logistics fees.
Alabi stressed that lowering port tariffs would attract more cargo to Nigerian ports, leading to increased trade activity, higher government revenue, and expanded job opportunities for Nigerian youth.
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The Deputy Managing Director of CMA CGM Shipping Company, Mr. Ramesh Saraf, also called on the government to intervene, highlighting how Tema Port handled 1.9 million twenty-foot equivalent units (TEUs) in 2024, compared to Nigeria's 1.2 million TEUs, due to Ghana's more favorable port fees.
Saraf further noted that Lekki Deep Sea Port, which began operations in April 2023, has been struggling with reduced cargo volume due to its exorbitant operational costs—three times higher than other international ports.
A source within the Nigerian Ports Authority (NPA) dismissed claims that the 15% tariff increase was solely responsible for the high cost of doing business, arguing that multiple factors—including vessel gross tonnage, cargo origin, and port terminal status—affect overall shipping costs.
The NPA had earlier defended its decision to increase port tariffs for the first time in 32 years, stating that the move, effective March 1, was necessary to modernize infrastructure and improve efficiency.
However, with shippers shifting cargo to cheaper ports, industry experts warn that without urgent reforms, Nigeria risks losing its status as a major maritime gateway in West Africa.
