The Shipping, Shipping Agencies, Clearing and Forwarding Employers Association (SSACFEA) has urged the federal government to suspend the implementation of the 15 percent tariff hike in port charges.
Boma Alabi, the association’s president, spoke during a press conference in Lagos on Friday.
Alabi said the government should halt the tariff hike and engage with operators, as members of the association were not informed before the implementation by the Nigerian Ports Authority (NPA).
“We were not informed about the charges before the government implemented them,” Alabi said.
“The government should try to make the ports competitive and attractive, which can be achieved through a reduction of port charges.
“If port charges are reduced, cargo throughput will increase, then the government will make more revenue, and there will be enough jobs available for the youth.”
She noted that Nigeria loses cargoes to neighbouring countries due to high port charges and said the government could make ports more competitive by reviewing costs.
Alabi also said it costs $15,000 for ships to call at other ports, while the same process costs $150,000 at Nigerian ports.
“Before the implementation of the 15 percent port charges by the government, port charges on 40ft containers additionally cost N100,000, while it cost N55,000 for 20ft containers,” the president stated.
“After the 15 percent port charges implementation, it costs an additional N290,000 to bring a 40ft container into Nigerian ports, while it costs N145,000 to bring a 20ft container.
“In Singapore, it takes $29,000 for a ship to berth; $60,000 in Abidjan; $35,000 in China; $26,000 in Lome; $27,000 in Cotonou; and $35,000 in Nigeria.”
To address the high charges, Alabi recommended re-dollarising port charges for import and export goods to make Nigerian ports more attractive.
She also advocated for port expansion and reforms, adding that neighbouring countries take advantage of Nigeria’s port challenges to attract cargo.
Ramesh Saraf, deputy managing director of CMA CGM, called for government support to sustain businesses, citing concerns over Tema Port’s Terminal C handling 1.9 million TEUs in 2024, compared to 1.2 million TEUs at Nigerian ports.
“Lekki Deep Sea Port started operation in April 2023 with less than half capacity of cargo, and now less operation is taking place at the port,” Saraf said.
“The cost of operation in Lekki Deep Sea Port is triple the port charges in other ports across the world.”
The NPA on February 6 secured the required approvals to increase its tariffs for the first time in 32 years to enhance infrastructure and upgrade equipment.
