‘Clearing 20-ft container costs N7m in Benin, N15m in Nigeria’

The Importers Association of Nigeria (IMAN) has opposed the recent rise in port fees and terminal costs imposed by shipping firms and terminal operators, cautioning that this change could intensify economic struggles, deter investments, and further weaken Nigeria's position in regional trade.

During a press briefing in Lagos on Wednesday, the organization’s Board of Trustees and its branches from all 36 states and the FCT labeled the tariff increase as unreasonable and out of touch with the economic challenges faced by importers and the average Nigerian.

The joint statement by IMAN Chairman, Joseph Ozurumba Ajoku, and National Secretary-General, Aliyu Ahmed Yar’adua revealed that import enterprises are currently facing challenges from escalating operational expenses, fluctuating foreign exchange rates, inflation, and reduced consumer spending power, emphasizing that the new fees would exacerbate the cost of imported items and heighten pressures on businesses reliant on maritime operations.

“Transporting a 20-foot container in the Benin Republic costs between N7 million and N8 million, while at Apapa Port, it ranges from N14 million to N15 million.

“Similarly, clearing a 40-foot container in the Benin Republic falls between N13 million and N14 million, whereas the same clearance incurs roughly N19 million to N20 million in Apapa,” they noted.

They criticized the Nigerian Shippers’ Council for sanctioning the fee hike without proper consultation with importers and other stakeholders significantly impacted by the decision.

As stated by the Chairman and National Secretary, importers significantly contribute to government income through customs duties and activities linked to ports, warning that excessive fees could detrimental impact cargo handling and decrease overall revenue within the maritime industry.

“We question the effectiveness of multinational shipping companies operating in Nigeria, as their service quality has not improved sufficiently to warrant another tariff increase.

“We aim to emphasize the increasing competitiveness of nearby ports in Benin Republic, Ghana, and Togo, where tariffs and cargo clearance expenses are considerably lower.

The group also cautioned that the growing disparity in costs between Nigerian ports and those in neighboring nations is driving importers to route cargo operations away from Nigeria, a practice that may result in reduced port operations, job losses, and falling foreign direct investment.

Furthermore, the association expressed worries regarding allegedly unauthorized fees charged by shipping firms and terminal operators, including delays in returning container deposits and additional charges linked to the transport of empty containers to storage areas.

They argued that importers already incur transfer and storage fees after cargo is delivered and should not face further financial pressures beyond the sanctioned regulatory frameworks.

IMAN pointed out that the overall impact of rising port fees could lead to business shutdowns, financial losses, inflation rates increasing, and a diminishment of Nigeria’s image as a costly location for maritime commerce.

“While we oppose the tariff hike, we are also willing to initiate discussions with regulators and industry stakeholders to foster operational improvements and ensure a fair and transparent tariff structure,” they concluded.
The organization, nonetheless, called upon the Nigerian Shippers' Council to implement rigorous adherence to economic guidelines and guarantee that any upcoming tariff adjustments are led by thorough discussions and quantifiable advancements in the quality of service provided.