Arbitrary charges at ports put importers on edge

Importers and freight stakeholders have raised fresh concerns over what they describe as arbitrary and excessive charges imposed by terminal operators at Nigeria’s seaports, warning that the situation is increasing the cost of doing business and undermining the competitiveness of the country’s maritime sector. Industry operators say the charges have persisted despite the expiration of […]

Importers and freight stakeholders have raised fresh concerns over what they describe as arbitrary and excessive charges imposed by terminal operators at Nigeria’s seaports, warning that the situation is increasing the cost of doing business and undermining the competitiveness of the country’s maritime sector.

Industry operators say the charges have persisted despite the expiration of concession licences granted to terminal operators under the port reform programme supervised by the Nigerian Ports Authority (NPA).

The licences, which initially ran for 10 years under the concession framework, were extended by five years in 2016 by the Federal Government. However, that extension expired in 2021, leaving the operators running on licences that stakeholders say require urgent review and renewal.

Nigeria’s port concession programme, which commenced in 2000 and was concluded in 2006, introduced private sector participation in port operations through Build-Operate-Transfer arrangements. The reform created the present system of private terminal operators across major ports in the country.

These include operators at the Lagos Port Complex and Tin Can Island Port in Lagos, as well as facilities in Port Harcourt, Warri, Onne and Calabar.

While the reform was intended to improve efficiency, modernise port infrastructure and reduce congestion, importers say multiple and sometimes unexplained charges imposed by terminal operators and shipping companies have significantly increased operational costs.

A Lagos-based exporter, Ikechukwu Anthony, told reporters that many importers and exporters are being forced to pay additional charges that are not clearly approved by regulatory authorities.

He cited a situation in which he was asked to pay $300 to cancel a booking with a shipping line. According to him, he was also required to pay an additional $100, yet his company’s online portal remained blocked for months despite making the payments.

“We are being forced to pay arbitrary charges that are not approved by regulatory authorities. This is exploitation,” he said.

Another stakeholder, a clearing agent, Subaru Abdul, said the continued imposition of hidden fees has raised serious concerns about transparency and regulatory oversight within the Nigerian ports system.

According to him, the situation highlights the urgent need for stronger enforcement by government agencies to protect importers and other players in the maritime sector.

Industry observers say the proliferation of hidden charges has become one of the biggest challenges facing Nigerian ports.

Among the most controversial charges are terminal handling fees, container demurrage, documentation fees, environmental levies and various certification costs imposed by regulatory agencies.

Demurrage charges alone can impose heavy financial pressure on importers when cargo remains at the port beyond the allowed free storage period, a situation often caused by congestion and delays.

Experts say the total cost of importing a container through Nigerian ports can reach about $2,500, significantly higher than the average cost in neighbouring West African countries.

Comparisons with other regional ports further highlight the gap. For instance, vessel berthing charges in Nigeria can range between $150,000 and $200,000 per call, while the cost is far lower in ports such as Port of Tema in Ghana and Port of Lomé in Togo.

Similarly, terminal handling charges in Lagos are estimated at about $457 per container, compared with roughly $284 in Tema and about $180 in Durban.

Daily demurrage rates also differ widely. In Nigeria, importers may pay as much as N68,500 per day for a 40-foot container and N48,000 for a 20-foot container, while storage fees in Lomé and Tema often range between $20 and $30 per day.

Stakeholders say unofficial charges imposed during regulatory inspections by agencies such as the Standards Organisation of Nigeria and the National Agency for Food and Drug Administration and Control also contribute to rising costs.

The high charges have also been linked to operational inefficiencies. Vessel turnaround time in Nigerian ports averages between five and seven days, while cargo dwell time can range from 10 to 18 days. In contrast, ports such as Lomé and Tema record vessel turnaround times of three to four days and cargo dwell times of about seven to 10 days.

Reacting to the arbitrary charges, the Nigerian Shippers’ Council (NSC) directed shipping companies and terminal operators in Nigeria to engage with clearing agents before implementing any tariff hikes.

The Council’s Executive Secretary, Pius Akutah, gave the directive amidst recent hike in charges and tariffs by foreign shipping companies operating in the nation’s seaports.

The Council’s Executive Secretary stated that they must carry clearing agents along in their decision-making process, especially when it comes to review of shipping charges.

He stressed that discussions between the two parties should be guided by a spirit of compromise and mutual understanding.

According to him, the Council had previously turned down requests for an increase in charges for two years, noting that the request was not necessarily aimed at profit-making or increasing profit margins.

Akutah emphasised that sustained engagement between stakeholders remains critical to maintaining stability in the maritime sector and ensuring that operational challenges do not disrupt port activities.

“I think that they need to work together more harmoniously to resolve these issues. We as a regulator have given the approval. It is left for the shipping companies and the Freight forwarders to come to a harmonious stand where they can implement this.”