Concerns about what they see as arbitrary and exorbitant fees levied by terminal operators at Nigeria’s seaports have been voiced by importers and freight stakeholders, who warn that the situation is raising operating costs and hurting the competitiveness of the nation’s maritime industry. Despite the expiration of concession licenses given to terminal operators under the port reform program overseen by the Nigerian Ports Authority (NPA), industry operators claim the charges have continued.In 2016, the Federal Government extended the licenses, which were originally valid for ten years under the concession structure, by five years. However, that extension ended in 2021, leaving the operators operating under licenses that stakeholders claim urgently need to be reviewed and renewed. Through Build-Operate-Transfer agreements, Nigeria’s port concession program, which ran from 2000 to 2006, allowed the private sector to participate in port operations. The current system of private terminal operators at the nation’s main ports was established as a result of the reform.These include facilities in Port Harcourt, Warri, Onne, and Calabar, as well as operators at the Lagos Port Complex and Tin Can Island Port in Lagos. Although the change was meant to promote efficiency, modernize port facilities, and lessen congestion, importers claim that many, occasionally inexplicable fees levied by shipping firms and terminal operators have greatly raised operating expenses. Ikechukwu Anthony, an exporter from Lagos, told reporters that many importers and exporters are being made to pay extra fees that regulatory bodies have not explicitly authorized.He described an instance where a shipping line demanded $300 from him in order to cancel a reservation. He claims that even when he paid the extra $100, his company’s internet site remained restricted for months. “We are being made to pay arbitrary fees that regulatory bodies have not authorized.” “This is exploitation,” he declared. Subaru Abdul, a clearing agency and another stakeholder, expressed grave worries about the Nigerian ports system’s transparency and regulatory control due to the ongoing imposition of hidden fees.He claims that in order to safeguard importers and other participants in the marine industry, there is an urgent need for government agencies to enforce the law more strictly. According to industry observers, one of the main issues Nigerian ports are currently facing is the spread of hidden fees. Terminal handling fees, container demurrage, documentation fees, environmental taxes, and different certification prices imposed by regulatory bodies are some of the most contentious charges.When cargo stays at the port past the permitted free storage period—a scenario frequently brought on by traffic and delays—demurrage charges alone can put importers under severe financial strain. According to experts, importing a container through Nigerian ports can cost up to $2,500 in total, which is far more than the typical price in nearby West African nations. The disparity is further highlighted by comparisons with other regional ports. For example, berthing fees for vessels can vary from $150,000 to $200,000 every call in Nigeria, while they are far less in ports like Ghana’s Port of Tema and Togo’s Port of Lomé.In a similar vein, the estimated cost of terminal handling in Lagos is approximately $457 per container, while in Tema and Durban it is approximately $284 and $180, respectively. Additionally, daily demurrage rates vary greatly. While storage costs in Lomé and Tema typically range from $20 to $30 per day, importers in Nigeria may pay up to N68,500 per day for a 40-foot container and N48,000 for a 20-foot container. According to stakeholders, unofficial fees levied during regulatory inspections by organizations like the National Agency for Food and Drug Administration and Control and the Standards Organization of Nigeria are another factor driving up expenses.Operational inefficiencies have also been connected to the high fees. In Nigerian ports, cargo dwell times can vary from 10 to 18 days, while vessel turnaround times typically range from five to seven days. On the other hand, ports like Lomé and Tema report cargo dwell periods of roughly seven to ten days and vessel turnaround times of three to four days. The Nigerian Shippers’ Council (NSC) responded to the arbitrary charges by ordering Nigerian terminal operators and shipping corporations to consult with clearing agents prior to enacting any rate increases. Pius Akutah, the Executive Secretary of the Council, issued the order in response to a recent increase in fees and taxes by international shipping firms using the country’s seaports.According to the Executive Secretary of the Council, clearing agents must be included in their decision-making process, particularly when it comes to reviewing shipping prices. He emphasized that a spirit of mutual understanding and compromise should direct talks between the two sides. He said that the Council had previously rejected petitions for a two-year price hike, pointing out that the demands were not necessarily intended to expand profit margins or make money.Akutah emphasized that sustaining stability in the maritime industry and making sure that operational difficulties don’t interfere with port operations depend on ongoing stakeholder engagement. “I believe that in order to fix these problems, they must cooperate more amicably. The approval has been granted by us as regulators. It is up to the freight forwarders and shipping companies to reach a mutually agreeable position so they may put this into practice.
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