Importers shun Nigerian ports for Benin as charges hit N20m

Cargo Ship

Importers have abandoned Nigerian ports for Benin, Ghana, Togo and Burkina Faso due to the increase in tariffs by shipping lines.

Hike in terminal charges, poor services, delays in refunding container deposits, unapproved charges and other financial irregularities amount to billions of naira.

The Board of Trustees of Importers Association of Nigeria (IMAN), in a press briefing in Lagos yesterday, condemned what it described as arbitrary increases in shipping and terminal charges without adequate consultation with importers and other stakeholders, despite the operational deficiencies and declining service delivery standards of multinational shipping lines operating within Nigeria.

Chairman, IMAN, Southwest zone, Joseph Ajoku, insisted that there had been no significant service improvement to justify another increase barely two years after the last tariff review.

Ajoku compared Nigeria’s port charges with neighbouring West African countries, stating that cargo clearance costs in countries such as Benin, Ghana, Togo and Burkina Faso were significantly lower.

According to IMAN, clearing a 20-foot container at ports in Benin Republic costs between N7 million and N8 million, compared to between N14 million and N15 million at Apapa Port.

The importers association also added that a 40-foot container costs approximately N13 million to N14 million in Benin Republic, against N19 million to N20 million in Apapa.

Ajoku warned that the rising cost of doing business at Nigerian ports had continued to push importers to divert cargoes to neighbouring countries where charges were lower, and service delivery was 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.

Also speaking, the National Secretary General of IMAN, Aliyu Yaradua, argued that importation activities played a critical role in sustaining Nigeria’s economy, stressing that any policy that discouraged importers would ultimately reduce government earnings and slow economic growth.

He lamented that many importers were 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.

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 were now struggling to survive amid rising operational costs.

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