In a significant move to bolster economic ties and modernise its maritime infrastructure, the Nigerian government has finalised a major partnership with the United Arab Emirates. The deal comes at a time when local freight agents are staging protests against increased operational costs at the nation's busiest ports.
Historic Maritime Agreement Forged in Abu Dhabi
The Federal Ministry of Marine and Blue Economy has entered into a Memorandum of Understanding (MoU) with the Abu Dhabi Ports Group. The agreement, aimed at enhancing cooperation in ports development, maritime logistics, and digital transformation, was signed on the sidelines of the Abu Dhabi Sustainability Week. This pact marks a pivotal step in Nigeria-UAE economic relations, reflecting a shared commitment to expand trade and investment.
The Nigerian delegation was led by the Minister of Marine and Blue Economy, Adegboyega Oyetola. The Abu Dhabi Ports Group was represented by its chairman, Mohamed Hassan. Also present at the signing was the Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dayo Mobereola.
According to a statement from NIMASA's head of public relations, Osagie Edward, the MoU is part of broader engagements between the two nations. It focuses specifically on modernising port infrastructure and improving operational efficiency across the maritime value chain. Officials revealed that this agreement had been under consideration for more than two decades, signalling a renewed commitment to strengthening bilateral ties.
Following the signing ceremony, the Nigerian team briefed President Bola Tinubu on the strategic importance of this partnership, which is expected to accelerate growth in Nigeria's maritime and blue economy sectors.
Freight Forwarders Halt Operations in Apapa Over Charges
While the government celebrated a new international deal, a different scene unfolded at the Apapa ports in Lagos. Freight forwarders, operating under the Association of Nigeria Licensed Customs Agents (ANLCA) Western Zone, shut down business activities at shipping companies in protest of a recent hike in charges.
Aggrieved agents gathered in large numbers at the Mediterranean Shipping Company (MSC) office in Apapa, bringing operations to a standstill. They declared that activities at the shipping company would remain closed from 6:00 a.m. daily until the company reverts to its previous tariff structure.
The protesters argued that the planned increments are unjustifiable, coming just three years after shipping lines raised tariffs by over 400 per cent. They cited the persistent challenges of foreign exchange volatility and high diesel prices as making the new costs untenable.
Femi Anifowose, the Western Zone Coordinator of ANLCA, emphasised that the cumulative burden of escalating port-related charges is directly increasing the cost of imports. He warned that the ultimate consequence of these rising costs would be borne by Nigerian consumers.
Broader Economic Context and Implications
The dual developments highlight the complex landscape of Nigeria's maritime and trade sectors. On one hand, the government is pursuing high-level international partnerships to drive long-term infrastructure development and efficiency. On the other, local operators are grappling with immediate, pressing cost issues that threaten their businesses and the affordability of goods.
This situation occurs against a backdrop of recent policy adjustments aimed at easing importation costs. The Central Bank of Nigeria (CBN) recently lowered the customs duty exchange rate to N1,421.23 per dollar, down from N1,487.396. This directive, issued in 2024, mandates the use of the closing forex rate on the day a Form M is opened for calculating import duties, providing some relief to importers.
The success of the new Nigeria-UAE ports deal will likely be measured not only by improved infrastructure but also by its trickle-down effect on the operational cost environment for freight forwarders and, ultimately, on the prices paid by everyday Nigerians.
