Nigeria becoming too expensive for goods, IMAN cry out

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 amounting to billions of naira.

The Board of Trustees of Importers Association of Nigeria (IMAN) in a press briefing in Lagos on Tuesday, 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 has 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 are significantly lower.

IMAN disclosed that 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 has continued to push importers to divert cargoes to neighbouring 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.

Ajoku further criticised terminal operators over what the association described as continuous and unapproved increases in terminal charges, particularly charges relating to the movement of 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 to include 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 carrying out sufficient due diligence or engaging importers, who directly bear the burden of the charges.

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, stressing that any policy that discourages importers would ultimately reduce government earnings and slow economic growth.

He 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.

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 he said would significantly affect government revenue generation.

“If importers decide to stop importing goods, government revenue will drop heavily within weeks,” he warned.