N7m clears container in Cotonou, same cargo costs N15m in Apapa — IMAN
Cost Disparities in Cargo Clearance Are Driving Nigerian Importers Abroad, Association Warns
By Efe Onodjae
LAGOS — The Importers Association of Nigeria (IMAN) has raised concerns over the rising expenses associated with cargo clearance at Nigerian ports. The association indicated that while clearing a 20-foot container in Cotonou, Benin Republic, costs between N7 million and N8 million, the same service at Apapa Port in Lagos ranges from N14 million to N15 million.
IMAN claims this significant cost disparity is prompting many Nigerian importers to reroute their shipments to neighboring West African countries, such as Benin, Ghana, and Togo, where port charges are considerably lower and operational efficiency is higher.
In a recent interview, IMAN South West Chairman Joseph Ajoku criticized the recent increase in tariffs by shipping lines and terminal operators. He warned that such increases would exacerbate inflation, elevate the cost of goods, and further hinder the import sector.
The association revealed that a 40-foot container, which costs approximately N13 million to N14 million to clear in Benin Republic, incurs charges of between N19 million and N20 million in Nigeria.
IMAN stated that the rising costs of doing business at Nigerian ports continue to diminish the country’s competitiveness within the West African region. “Our findings show that smaller West African countries, such as Ghana, Togo, Benin, and Burkina Faso, are experiencing significant improvements in operational efficiency and service delivery,” the association noted.
Ajoku explained that the vast difference in costs underscores the challenges facing Nigerian importers. He cited figures from Benin Republic, where the cost to clear a 20-foot container is around N7 million to N8 million, compared to N14 million to N15 million at Apapa Port. Similarly, the cost for a 40-foot container is significantly higher in Nigeria, at N19 million to N20 million.
Aliyu Yar’adua, the National General Secretary of IMAN, emphasized the crucial role importers play in the Nigerian economy, noting that importers are the second largest source of revenue for the government after oil. “Importers are the lifeline of government revenue,” he said.
Yar’adua called on the Nigerian Shippers’ Council (NSC) to reconsider further tariff hikes and ensure that importers are consulted prior to any adjustments in shipping and terminal fees. He expressed concern that many importers are struggling due to high foreign exchange rates, increased bank interest rates, and multiple port fees, with some businesses having abandoned their cargo due to prohibitive charges.
He cautioned that allowing further tariff increases amid a difficult economic climate would likely exacerbate inflation and drive more businesses to seek alternatives in neighboring countries.
