Importers are increasingly diverting goods to neighboring West African countries to avoid soaring port charges in Nigeria.
Over the past month, multiple government agencies, terminal operators, and shipping companies have raised their fees by nearly 100%, making cargo clearance unaffordable for many businesses.
Lagos port, Nigeria’s busiest, has been particularly affected, with a sharp decline in activity, threatening the country’s ease of doing business agenda.
According to The Guardian Nigeria, clearing costs have surged, with processing fees for a 40-foot container jumping from N18–20 million to N26 million, while a 20-foot container has nearly doubled from N10.5 million to N20 million.
As a result, Nigerian ports are rapidly losing their competitive edge, forcing importers to shift operations to Ghana, Togo, and Benin Republic—undermining Nigeria’s long-standing role as the region’s primary trade hub.
The Nigerian Ports Authority (NPA) recently implemented a 15% increase in port charges, its first tariff adjustment since 1993.
Managing Director Dr. Abubakar Dantsoho stated that the increase aims to improve competitiveness and fund critical infrastructure projects, including upgrading outdated equipment, expanding port capacity, and enhancing efficiency.
The NPA relies on operational revenue to finance key initiatives such as channel dredging, port security, digital automation, energy efficiency, and staff training.
However, despite these efforts, Nigeria’s ports now handle fewer than two million Twenty-Foot Equivalent Units (TEUs), even though the country is the intended destination for 70% of West Africa’s trade.
The Manufacturers Association of Nigeria (MAN) has strongly opposed the tariff increase, warning of its impact on production costs and inflation.
MAN Director-General Segun Ajayi-Kadir criticized the timing of the hike, arguing that businesses are already grappling with high foreign exchange rates, rising energy costs, and other economic challenges.
Stakeholders have also raised concerns about the combined effect of the new port charges and the recently introduced 4% Free On-Board (FOB) charge by the Nigeria Customs Service, warning that these measures could have severe consequences for businesses and the broader economy.
