Nigerian importers are saving approximately N4 million on each container cleared at the port of Cotonou in the Republic of Benin, compared to clearing through Lagos ports, according to the Importers Association of Nigeria (IMAN). The association revealed that rising shipping and port charges in Nigeria are driving importers to divert cargo from Lagos ports to Cotonou, where they can save between N3 million and N4 million per container.
Cost Comparison Drives Diversion
The Acting Chairman of IMAN, South West Zone, Joseph Ajoku, lamented that the cost of clearing goods through Apapa Port has become significantly higher than alternative routes. This makes ports in neighbouring countries more attractive and influences key logistics decisions. Ajoku stated that many importers are now routing their consignments through Cotonou port to cut costs.
“Most times, the cost of clearing in Apapa is so high that we decide to move our cargo to Cotonou. When we compare, we see a difference of about N3 million to N4 million on a single container,” he said.
Impact of Freight Rate Increases
According to Ajoku, the development is a direct consequence of recent freight rate increments imposed by shipping companies and high tariffs on port charges. These increases have persisted despite ongoing consultations with stakeholders. He lamented that engagements with shipping lines have yet to produce any relief, as operators maintain their position on the increases.
The IMAN leader stressed that importers bear the brunt of rising costs, as charges from shipping companies and clearing agents are ultimately passed on to them. “All the burden are on the importers. We are the ones at the receiving end,” he added.
Lack of Transparency
Ajoku also reiterated concerns over the lack of transparency in the pricing structure. He accused both shipping companies and freight forwarders of failing to provide cost templates to justify the increases. He warned that unless urgent steps are taken to address high port costs, Nigeria risks losing more cargo traffic to neighbouring countries, further undermining its competitiveness in regional maritime trade.
He further warned that continued cargo diversions could lead to significant revenue losses for Nigeria and weaken port operations.
