By Steve Agbota
Shippers in Nigeria are currently frustrated as the ongoing volatility in the foreign exchange market exacerbates cargo diversion and leads to a significant decline in import volumes.
They warn that the unpredictable foreign exchange landscape is increasingly undermining trade efficiency, with many businesses seeking alternative routes to avoid mounting costs and uncertainties at Nigerian ports.
They said the worrisome development has not only tripled shipment costs, it has also forced hundreds of businesses to already shut down.
Another repercussion is that neighbouring seaports, especially Togo and Benin Republic, have snatched the transhipment market from Nigeria.
Before now, importers could clear a 40-foot container at Nigerian ports for approximately N6 million. Today, that same container costs between N13 million and N25 million to clear — a staggering increase driven by persistent foreign exchange volatility and rising operational costs.
In recent months, the import landscape has become even more challenging. Several terminals at Nigerian ports now sit largely idle, resembling empty football fields, as cargo volumes dwindle. The cost of shipping goods into Nigeria continues to soar, placing immense strain on businesses. For instance, freight charges for a 40-foot container from China to Nigeria have surged to about $8,500 — compared to just $3,500 to Ghana and $3,000 to Lome.
Ghana, in contrast, benefits from a more stable foreign exchange regime and effective tariff control, allowing importers to budget around $20,000 to bring in a 40-foot container. Nigerian importers, however, are grappling with total import costs nearing $80,000 for the same consignment.
Experts trace the escalation to the 2023 decision by President Bola Tinubu’s administration to float the naira. Since then, the exchange rate has risen by more than 300 per cent, from N455/$1 to over N1,766/$1, severely distorting trade calculations and driving many importers out of business.
This has not only exacerbated the cost-of-living crisis but also threatened jobs and investments in the maritime sector while eroding investor confidence. The ripple effect is visible across markets, where the rising cost of imports continues to fuel inflation and push food prices beyond the reach of average Nigerians.
Amid rising economic uncertainty, many Nigerian importers are now diverting their business operations to neighbouring countries in search of more stable exchange rates and predictable trade environments. This growing trend is contributing to Nigeria’s persistent loss of cargo volumes and triggering a chain reaction of job losses and business closures, particularly among small and medium-sized enterprises (SMEs).
In a conversation with Daily Sun, Jonathan Nicole, former National President of the Shippers Association of Lagos State (SALS), affirmed the increasing frustration among importers, attributing the worsening situation to the proliferation of charges by multiple government agencies.
“The outcry of the shippers is very correct. There are so many agencies that are now increasing charges, and it’s going to get worse because of the global trend and tariffs all over the world. So, consignment coming to Nigeria will be more expensive. And if you look at it, you cannot bring in a 1 by 40-foot container or 1 by 20-foot container without making your capital back, not to talk of profit. So, if we get to that stage, more people will leave”, he said.
Nicole lamented the absence of a consistent economic policy framework since 2014.
“I have said this more than 10 times, more than 20 times. Since 2014, we’ve been crying about economic policy that has not been stable and the government has not been able to get it right. “You don’t have direct control over cost. Export is expensive. There are tendencies that some countries that don’t like us might even reject our exports. So, nothing is promising for now.”
He called on the government to rethink its approach to port charges and business facilitation. “The government is looking and trying to make money, and it’s even worse than the businessmen. The government must encourage people when they bring in their goods to tax them as Customs is doing. And I’ve always said that Customs should not even publish how much they are making at their commands. It’s intimidating!”
According to Nicole, “No place in the world that you see how much Customs is making. It’s supposed to be something that they should keep to themselves. And then, all of that is a lack of economic policy. So, they’ve not been able to put economic policy right. They are drafting now; they have no provision for shippers. Without the shippers, the beginning of the song will be faulty because the shippers bring everybody together. And in short form, without the cargo, there will be no activity in the port.”
Nicole warned that if nothing changes, cargo volumes in Nigerian ports could decline dramatically. “The government is expected to sit down and think about how the port system will be profitable because in the next 4–5 years, if it continues like this, the nation’s port will not have more than 25 per cent of cargo.”
He also highlighted the struggles of local manufacturers who are unable to access raw materials at affordable rates. “There are factories that are struggling for survival because of raw materials. And if they cannot get materials at a reasonable price, of course, they will close down and leave.”
On regional comparisons, Nicole said: “The clearing is more of a regulated tariff in Ghana. You can make projections and know how much profit you make before you bring in your goods. And when the goods arrive, it’s not that they will change the exchange rates. All of these things are something we don’t have control over anymore in Nigeria, and we’re asking why. It’s not funny.”
He added, “If you put $20,000 in a consignment, by the time you pay it, you’ll be paying close to $82,000 or more in deficit. So, it’s not a funny thing at all. So, all of us should not just have a government and not just talk—‘I will do this, I will do that’—and nothing is happening. But we have the government, as far as we’re concerned. So, we are looking at the technocrats in the system now to come out and help the government to put things right.”
In his views, Dr. Kayode Farinto, former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), said: “I’m one of those that have been saying this. Our fluctuating exchange rates will lead to a lack of predictability in the course of cargo clearance. And I thank God I’ve been justified from all indications. Honestly, I share the fear and the problem with the shippers. And that is why the Nigerian government should be up and doing in solving this problem.”
Farinto proposed a potential solution. “I believe that the only thing that can solve this problem, if the government cannot give us a benchmarking dollar, is the issue of a currency swap deal with China. If the government will sensitize Nigerian importers and educate them very well on the advantages, it will go a long way in solving and ameliorating their sufferings. That is the only solution for now.”
He noted that unpredictability in cargo clearance costs is one of the biggest threats to importers’ viability. “Importers, if they import containers of table water, cannot even predict how much they will clear it. Every day, stakeholders keep seeing different exchange rates on the portal, and that is not too good for a healthy environment.”
“Honestly, I share the shippers’ burden, and I feel for them, too. But everything lies with the federal government to solve this problem. And that is why you see that, on a monthly basis, we are losing. There is a decline in the volume of imports in Nigeria. I stand to be corrected,” Farinto said.
He stressed the importance of legal certainty to support any proposed currency deal. “Maybe this issue of currency swap deal with China, if the government can reiterate it and give it a legal backing, that will give confidence to the trading community. And because it is international trade now, everybody will want to go for it. But even if you do the currency swap deal and there is no legal backing to give people confidence, people will still be skeptical about it.”
Farinto added, “So, what the shippers are telling you is the truth. Meanwhile, our neighbouring countries are continuing to enjoy our cargo and are breeding our cargo on a monthly basis. And we are losing our volumes. Honestly, it is very unfortunate.”
Also weighing in, Eugene Nweke, Head of Research at the Sea Empowerment Research Centre, emphasised that the escalating cost of shipping into Nigerian ports demands urgent government intervention.
“To address the government should implement policies to stabilize the naira against the dollar, reducing the impact of exchange rate fluctuations on importers and exporters. It must also provide incentives for investors to participate in the FX market, thereby increasing liquidity and reducing volatility.”
He further called for reforms in port tariffs. “Conduct a thorough review of port charges and tariffs to ensure they are reasonable and competitive with neighbouring countries. Implement transparent and efficient payment systems to reduce corruption and unnecessary costs, and invest in modernizing port infrastructure, including equipment and technology, to increase efficiency and reduce congestion.”
According to Nweke, strengthening security to prevent cargo theft and streamlining regulatory processes will help cut red tape and reduce corruption.
“By implementing these measures,” he concluded, “the government can reduce the cost of shipments in Nigerian ports, boost competitiveness, and attract investment to the maritime sector, addressing the far-reaching consequences of the current economic climate.”