‘Port charges threatening N10tr blue economy target’

Unregulated port and shipping charges are adding as much as 1.2 percentage points to Nigeria’s annual inflation and could derail the Federal Government’s ambition to unlock N7 trillion to N10 trillion annually from the Marine and Blue Economy, according to a new policy memorandum by the Sea Empowerment and Research Centre (SEREC).

In a post-protest assessment submitted by the centre’s Head of Research, Eugene Nweke, to the Minister of Marine and Blue Economy and the Nigerian Shippers’ Council (NSC), the maritime research group warned that escalating charges at the nation’s ports, particularly along the Apapa corridor, have become a macroeconomic risk, raising import costs, weakening trade competitiveness and exposing supply chains to repeated disruption.

SEREC’s analysis shows that Apapa ports, which handle over 60 per cent of the country’s containerised imports, process an estimated 1.5 to 1.8 million TEUs annually. The report found that recent incremental shipping line and terminal charges of N150,000 to N250,000 per container translate into an additional N225 billion to N450 billion annual cost burden on the Nigerian economy.

These costs, the group said, are ultimately transferred to manufacturers, importers, small and medium-sized enterprises (SMEs) and final consumers, amplifying inflationary pressure across key sectors.

“Port and shipping charges now account for 30 to 40 per cent of landed import costs for some cargoes,” SEREC stated, noting that logistics-driven price increases are particularly severe for food items, pharmaceuticals and industrial inputs.

According to the memorandum, every 10 per cent rise in logistics costs is conservatively associated with a 1.5 to 2 per cent increase in consumer prices, making unchecked port charges a “hidden inflation tax” that undermines national anti-inflation efforts.

SEREC warned that without regulatory consolidation, logistics-related costs alone could continue to add 0.7 to 1.2 percentage points to headline inflation annually.

The policy document followed recent street-style protests by freight forwarding practitioners over shipping line charges, which culminated in the physical shutdown of a shipping company’s operations at Apapa and forced regulatory intervention by the NSC.

While acknowledging the legitimacy of industry grievances, SEREC cautioned that such methods carry steep economic consequences.

“Physical shutdowns disrupt cargo clearance cycles, conservatively costing the economy N3 billion to N5 billion per day in delayed cargo, demurrage, storage charges and lost productivity,” the group said, adding that prolonged disruptions could expose practitioners and associations to civil liability claims running into tens of billions of naira.

Beyond protests, the group identified regulatory ambiguity—particularly the unclear distinction between tariff consultation and approval, as a structural weakness discouraging long-term investment in port services.

The report noted that investor surveys consistently show that regulatory unpredictability increases the required return on investment by 3 to 5 per cent, raising port service costs and weakening Nigeria’s competitiveness relative to regional ports.

It warned that sustained high costs could trigger the diversion of 10 to 15 per cent of West African transit cargo to neighbouring countries.

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If existing gaps persist, SEREC estimates that Nigeria could continue to lose N500 billion to N700 billion annually to trade inefficiencies driven by excessive charges, delays and regulatory uncertainty.

The group also warned that reputational damage and weak governance could undermine the Marine and Blue Economy’s projected N7 trillion to N10 trillion annual contribution to GDP over the medium term.

To reverse the trend, the research body urged the federal government to institutionalise a binding national port tariff review and approval framework, supported by mandatory cost-justification disclosures.

The organisation estimates that such reforms could reduce unjustified charges by 10 to 20 per cent, generating N200 billion to N400 billion in annual savings for the economy.

It also recommended the creation of a Standing Port Charges Review and Mediation Forum, with an estimated operating cost of N300 million to N500 million annually, but capable of preventing disruptions and avoiding losses of N50 billion to N100 billion each year.

Concluding, SEREC noted that port economic regulation should be treated as a macroeconomic stabilisation tool, not merely an industry concern.

“When regulation fails, the economy pays. When regulation is predictable, the economy gains,” the memorandum stated.

According to the maritime think tank, strengthening port charges governance is “central to inflation control, trade competitiveness and the long-term success of Nigeria’s Marine and Blue Economy agenda.”