Shipping Association Calls on Federal Government to Engage in Dialogue Over 15% Port Charge Increase
The Shipping Shipping Agencies, Clearing and Forwarding Employers Association (SSACFEA) has called on the Nigerian Federal Government to engage in dialogue with stakeholders regarding the recently implemented 15% increase in port charges. The plea was made during a news conference in Lagos on Friday.
Mrs. Boma Alabi OON, SAN -Chairman, Shipping Association of Nigeria expressed concerns over the lack of prior consultation with operators before the implementation of the new charges. Alabi urged the government to suspend the hike and initiate a dialogue with the industry to find a more sustainable solution.
Alabi emphasized that to make Nigerian ports more competitive and attractive to global trade, a reduction in port charges is crucial. She argued that lower charges would increase cargo throughput, consequently boosting government revenue and creating job opportunities for Nigerian youth.
“The high cost of port charges has led to a significant loss of cargoes to neighboring countries,” Alabi stated. “By reviewing the current charges, the government can make Nigerian ports more competitive and regain cargoes that have been diverted elsewhere.”
The SSACFEA President compared the port charges in Nigeria with those in other countries. For instance, she noted that it costs $15,000 for ships to call at ports in other countries, compared to $150,000 for Nigerian ports. Before the 15% increase, the cost of port charges for a 40ft container was an additional N100,000, and N55,000 for a 20ft container. Following the tariff adjustment, these costs rose to N290,000 for a 40ft container and N145,000 for a 20ft container.
Alabi further highlighted that while the cost for a ship to berth in Singapore is $29,000, it is $60,000 in Abidjan, $35,000 in China, $26,000 in Lome, and $27,000 in Cotonou—much lower than the $35,000 charged at Nigerian ports.
She also called for an expansion of Nigerian ports, noting that high operational costs hinder their competitiveness. To make Nigerian ports more attractive, Alabi suggested re-dollarizing port charges for both imports and exports.
The SSACFEA President pointed out that Nigerian cargoes are being diverted to neighboring countries, where smuggling has become rampant, further harming the national economy. She warned that vessels calling at Nigerian ports are leaving with empty containers, while agricultural produce is transported by road to neighboring countries at lower toll fees, enriching those nations.
In support of these concerns, Mr. Ramesh Saraf, Deputy Managing Director of CMA CGM, a global shipping line, urged the government to provide more support for operators in the sector. Saraf shared data that highlighted the discrepancy between Nigerian ports and those in other regions. In 2024, Meridian Ports Service Ltd. in Tema Port recorded 1.9 million TEUs (20ft equivalent units) in cargo, while Nigerian ports handled only 1.2 million TEUs during the same period.
Saraf also mentioned the underperformance of the Lekki Deep Sea Port, which started operations in April 2023 but has yet to reach full capacity due to the high operational costs. He added that the costs at Lekki Deep Sea Port are triple those at other international ports.
The Nigerian Ports Authority (NPA) recently announced a 15% increase in port tariffs, the first adjustment in 32 years, citing the need for modernization of infrastructure and equipment.
As the debate over the port charges continues, industry leaders are calling for a comprehensive review that balances infrastructure development with the need to keep Nigeria’s ports competitive on the global stage.
