Nigeria loses N5bn daily to disruptions of port operation, unregulated charges –SEREC

By Steve Agbota

A new financial impact assessment by the Sea Empowerment and Research Center (SEREC) has revealed that operational disruptions from street-style protests by stakeholders in the maritime industry, leading to physical shutdowns and obstruction of port facilities is costing an estimated daily loss of  between N3 billion and N5 billion in delayed cargo, demurrage, storage charges and lost productivity.

Also, a policy memorandum by the research body dated January 14, 2026 and addressed to the Federal Ministry of Marine and Blue Economy and the Executive Secretary of the Nigerian Shippers’ Council, emphasised that unregulated shipping, terminal and other port charges, regulatory ambiguity and disruptive industrial actions on port operations, could be costing Nigeria between N500 billion and N700 billion yearly in trade inefficiencies.

The research body provided a post-protest assessment of recent street-style shutdowns at the Apapa port corridor triggered by increases in shipping line and terminal charges, with knock-on effects on headline inflation by up to 1.2 per cent as well as in investment and the country’s competitiveness in West African trade.

Going by the financial assessment report and memorandum signed by the Head of Research at SEREC, Dr. Eugene Nweke, shows that the Apapa port corridor processes over 60 per cent of containerised imports, conservatively estimated at between 1.5 million and 1.8 million twenty-foot equivalent units (TEUs) yearly.

The report revealed that importers using the Apapa port corridor currently face an average charge of between N150,000 and N250,000 per container, which when applied across that container volume, translates to an added cost burden of between N225 billion and N450 billion yearl economy.

  SEREC estimated that port and shipping charges affect logistics costs which now account for between 30 and 40 per cent of the total landing cost of some imports, adding that these additional costs are passed through the supply chain to manufacturers, importers, small and medium-sized enterprises and, ultimately, consumers.

   SEREC warned that every 10 per cent increase in logistics costs is associated with a 1.5 to 2 per cent rise in consumer prices, particularly affecting food items, pharmaceuticals and industrial inputs, which  adds approximately 0.7 to 1.2 percentage points to Nigeria’s yearly headline inflation.

  “Unclear distinction between tariff consultation and approval creates pricing uncertainty, discouraging long-term investment. Investor surveys consistently show that regulatory unpredictability increases required return on investment by three to five per cent, raising port service costs structurally,” the report stated.

  The report noted that while the suspension directive issued by the Nigerian Shippers’ Council has provided short-term relief, the episode reveals systemic regulatory weaknesses with direct macroeconomic consequences.

  On regional trade competitiveness, the report warned that Nigeria’s relatively high port costs could lead to the diversion of between 10 and 15 per cent of West African transit cargo to neighbouring ports.

  With reforms, the research centre projected the retention and recovery of this transit cargo, strengthening Nigeria’s ambition to serve as a regional maritime hub.

  The report also underscored rising legal and financial risks associated with unlawful port protests, with an estimated potential litigation and liability exposure exceeding N100 billion over time for associations and operators.

  SEREC cautioned that such disruptive industrial actions expose freight forwarding practitioners and their associations to potential civil liability claims that could run into tens of billions of naira, further weakening an already fragile sector.

  SEREC noted that if targeted policy reforms are implemented, including a structured national tariff review and approval framework, as well as a mandatory cost-justification disclosures by service providers, Nigeria could achieve a 10 to 20 per cent reduction in unjustified charges, resulting in yearly savings estimated at between N200 billion and  N400 billion  for the economy.

  SEREC also proposed the creation of a Standing Port Charges Review and Mediation Forum and a multi-stakeholder body for dispute resolution, which would cost an estimated yearly running cost of between N300 million to N500 million and help avoid economic  losses valued between N50 billion and N100 billion each year.

At the macro level, SEREC cautioned that continued policy instability in the ports  threatens the Marine and Blue Economy growth targets, potentially undermining a projected yearly Gross Domestic Product (GDP) contribution of between N7 trillion and N10 trillion.

  The report added that efficiency gains from reforms  could instead boost GDP by an additional N1 trillion to N2 trillion yearly.

  Other recommendations include, strengthening regulatory communication and transparency through proactive publication of tariff status and approvals, which would see a reduction in disputes and uncertainty and lowering transaction costs by five to eight per cent across the port value chain.

  SEREC also recommended the enforcement of professional conduct standards, sanction for unlawful protest conduct and promoting lawful industrial advocacy, which would see the protection of industry credibility and avoidance of litigation risks potentially exceeding N100 billion over time.