The Importers Association of Nigeria (IMAN) has raised alarm over the increasing exodus of importers from Nigerian ports to neighboring countries such as Benin, Ghana, Togo, and Burkina Faso. This shift is attributed to rising tariffs by shipping lines, escalating terminal charges, poor service delivery, delays in refunding container deposits, and other financial irregularities amounting to billions of naira.
IMAN Condemns Arbitrary Tariff Increases
In a press briefing held in Lagos on Tuesday, the Board of Trustees of IMAN condemned what it described as arbitrary increases in shipping and terminal charges without adequate consultation with importers and other stakeholders. The association highlighted that these increases come despite operational deficiencies and declining service delivery standards by multinational shipping lines operating in Nigeria.
Joseph Ajoku, Chairman of IMAN Southwest zone, emphasized that there has been no significant service improvement to justify another tariff increase, barely two years after the last review. He compared Nigeria's port charges with those of neighboring West African countries, noting that cargo clearance costs in Benin, Ghana, Togo, and Burkina Faso are significantly lower.
Comparative Analysis of Port Charges
IMAN disclosed that clearing a 20-foot container at ports in Benin Republic costs between N7 million and N8 million, whereas at Apapa Port in Nigeria, the cost ranges from N14 million to N15 million. For a 40-foot container, the cost in Benin Republic is approximately N13 million to N14 million, compared to N19 million to N20 million in Apapa.
Ajoku warned that the rising cost of doing business at Nigerian ports continues to push importers to divert cargoes to neighboring countries where charges are lower and service delivery is more efficient. He also raised concerns over alleged infractions by shipping lines, including delays in refunding container deposits, imposition of unapproved charges, and other financial irregularities amounting to billions of naira.
Criticism of Terminal Operators and Regulators
Ajoku further criticized terminal operators for continuous and unapproved increases in terminal charges, particularly for moving empty containers to holding bays, despite importers already paying for transfer and storage after cargo delivery. The association listed the likely consequences of the tariff increases, including increased hardship for consumers, collapse of import businesses, reduction in government revenue, decline in foreign direct investment, job losses, increased inflation, and damage to Nigeria's reputation as a high-cost port destination.
IMAN stressed that the proposed tariff adjustments would place additional pressure on importers already grappling with high operational costs, foreign exchange volatility, inflation, and declining consumer purchasing power. Ajoku faulted the Nigerian Shippers' Council for allegedly approving the increases without sufficient due diligence or engaging importers who directly bear the burden of the charges.
Call for Stakeholder Consultation
IMAN maintained that the economic regulator should have consulted stakeholders extensively before considering any upward review in tariffs and terminal charges. Ajoku called on shipping lines and terminal operators to operate within the framework of the Federal Government's economic regulatory policies in pursuing any future port service tariff review.
Also speaking, the National Secretary General of IMAN, Aliyu Yaradua, argued that importation activities play a critical role in sustaining Nigeria's economy. He stressed that any policy discouraging importers would ultimately reduce government earnings and slow economic growth. Yaradua lamented that many importers are already unable to clear their consignments due to the high exchange rate and mounting port charges, leading to prolonged cargo stay at the ports and the risk of overtime cargo auctions.
Appeal for Leniency and Warning on Revenue Loss
Yaradua appealed to the Nigeria Customs Service to exercise leniency in handling overtime cargo, noting that several importers borrowed funds at high interest rates to finance their businesses and are now struggling to survive amid rising operational costs. According to him, the current economic realities have left many traders unable to meet obligations such as rent, school fees, and loan repayments.
Yaradua warned that continued increases in shipping and terminal charges could force importers to suspend import activities, a development that would significantly affect government revenue generation. “If importers decide to stop importing goods, government revenue will drop heavily within weeks,” he warned.
