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

Chairman of the Shipping Association of Nigeria, Boma Alabi, highlights that congestion surcharges and other charges are undermining Nigeria's aspirations to become a regional maritime hub. The primary economic factor driving soaring shipping costs in Nigeria is port/terminal congestion caused by procedural and logistics inefficiencies, as opposed to a lack of quay capacity.

This congestion leads to prolonged cargo dwell times in Lagos ports, with an average of 18-21 days compared to 5-7 days in Ghana and 4 days in Cotonou. These delays translate into increased storage, demurrage, trucking, and financing costs, pushing Nigeria's logistics and clearance costs roughly 30 per cent above West African regional peers.

Consequently, for many imported consignments, congestion and process delays can add 20-30 per cent to the final landed cost, depending on the commodity and financing structure.