High charges, delays undermine Nigeria’s maritime hub ambition – Alabi

High charges, delays and prolonged vessel turnaround times are undermining Nigeria's ambition to become a regional maritime hub, according to Boma Alabi, chairman of the Shipping Association of Nigeria. Port congestion in Lagos, where cargo dwell time averages 18-21 days, contrasts sharply with Ghana's 5-7 days and Cotonou's 4 days, resulting in higher storage, demurrage, trucking and financing costs.

Nigeria's logistics and clearance costs are roughly 30% above regional peers, meaning congestion and delays alone can add 20-30% to the final landed cost. Shipping lines operating in Nigeria generate significant revenue, but a large share of this is retained offshore through carrier headquarters. Nigerian-owned shipping companies struggle with capital requirements, limited access to long-term finance and regulatory uncertainty, preventing them from capturing a larger share of the country's maritime trade.

Foreign exchange volatility and limited access to dollars raise freight costs, impacting importers and exporters and potentially leading to lost business and foreign exchange.