The Shipping Agencies, Clearing and Forwarding Employers Association (SSACFEA) has urged the federal government to suspend the recent 15% increase in port charges, arguing that the decision was made without prior consultation and could negatively impact trade.
Speaking at a press conference in Lagos on Friday, SSACFEA President Boma Alabi criticized the lack of engagement with industry stakeholders before the Nigerian Ports Authority (NPA) implemented the new tariffs.
“We were not informed about the charges before the government implemented them,” Alabi said.
She emphasized that high port charges make Nigeria’s ports less competitive, diverting cargo shipments to neighboring countries. Alabi argued that reducing costs would attract more cargo, boost government revenue, and create jobs.
Highlighting cost disparities, she pointed out that while some ports charge $15,000 for ships to berth, the same process costs $150,000 in Nigeria.
“Before the 15 percent port charges were implemented, port charges on 40ft containers additionally cost N100,000, while it cost N55,000 for 20ft containers,” she explained.
“After the increase, bringing in a 40ft container now costs an additional N290,000, while a 20ft container costs N145,000 more.”
Alabi also compared global berthing costs, noting that it costs $29,000 in Singapore, $60,000 in Abidjan, $35,000 in China, $26,000 in Lome, $27,000 in Cotonou, and $35,000 in Nigeria.
To enhance competitiveness, she called for re-dollarizing port charges, expanding port facilities, and implementing policy reforms, warning that neighboring countries are attracting Nigeria’s cargo traffic.
Supporting the call for government intervention, Ramesh Saraf, Deputy Managing Director of CMA CGM, raised concerns over Tema Port’s Terminal C handling 1.9 million TEUs in 2024, compared to 1.2 million TEUs at Nigerian ports.
“Lekki Deep Sea Port started operations in April 2023 with less than half of its cargo capacity, and now even fewer operations are taking place there,” Saraf said.
“The cost of operations at Lekki Deep Sea Port is triple what it is at other ports worldwide.”
Meanwhile, the NPA defended the increase, stating that it secured the necessary approvals on February 6 to adjust tariffs for the first time in 32 years, citing the need to upgrade infrastructure and modernize equipment.
