Shippers are abandoning their cargoes at the ports as they struggle to cope with the soaring port charges and terminal fees, which are driving up the cost of doing business.

Shippers said they are increasingly unable to clear their goods or repay loans.

The former President of Shippers Association Lagos State (SALS), Jonathan Nicol, stated this, saying shippers who once spent N10 million to clear a 40-foot container now require over N40 million, making it almost impossible for them to repay their loans to the banks.

“We are watching shippers clean out their capital to stay in business. You take a loan of N50 million to import goods, but by the time your cargo gets here, you spend over N150 million just to clear it. Where do you find the money to repay the bank?” he asked.

He attributed the crisis to Nigeria’s faulty import adjustment policies and the hikes in ports, terminal and shipping charges.

He also disclosed that demurrage on a 40-foot container has soared by over 200 per cent per day, with many shippers unable to raise the additional funds required to clear goods.

“Where will an importer get that kind of money to pay? So, they are abandoning cargoes, and banks are chasing them for unpaid loans,” he added.

Nicol warned that this downward spiral is not just hurting shippers but also undermining the entire maritime economy as over 70 per cent of cargo is now reportedly diverted to neighbouring ports in Cotonou, Lome and Ghana.

He also criticised the exchange rate volatility and the inconsistency in Form M approvals, saying: “You raise Form M at N1.3 million, but by the time you’re clearing, it’s N1.6 million. Who absorbs the difference?”

The current crisis, he warned, is pushing many industries out of Nigeria and could cause ports to “go aground” if urgent action is not taken.

He cast doubt on the Federal Government’s ambition to grow the Gross Domestic Product (GDP) to $1 trillion, questioning how such a goal could be met when the import sector, the lifeline of the economy, is being stifled.

Similarly, the National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria (AREFFN), Taiwo Fatomilola, said the higher charges are already affecting cargo dwell time, as importers scramble to raise additional funds, leading to congestion and further demurrage penalties.

He added that with importers facing higher costs to clear goods, many may struggle to maintain their usual trade volume.

“If someone had budgeted N3 million for clearance, that person now needs to source more funds. Instead of clearing 10 units of containers, they might only be able to clear seven or eight,” Fatomilola explained.

He further noted that traders who cannot meet the financial demands will experience delays not due to negligence but due to the increased cost burden.