The Shipping Agencies, Clearing and Forwarding Employers Association (SACFEA) has called on the Federal Government to urgently reduce taxes for shippers, warning that exorbitant port charges are driving business away from Nigerian ports to neighbouring countries.
Speaking at a press conference in Lagos on Friday, SACFEA Chairman, Boma Alabi (SAN), highlighted that it now costs around USD200,000 to berth an average cargo vessel in Nigeria, following a recent 15% increase in marine service charges by the Nigerian Ports Authority (NPA).
She said in stark contrast, the same service costs just USD 15,000 at Ghana’s Tema Port—a 1,233% difference.
Alabi said that neighboring ports, including those in Cotonou and Lome, offer significantly lower berthing charges, making Nigerian ports uncompetitive.
For example, she said berthing a vessel costs USD26,000 in Lome, USD27,000 in Cotonou, USD29,000 in Singapore, USD21,000 in Shanghai, and USD60,000 in Abidjan.
The SACFEA chairman pointed out that smaller neighbouring countries have taken advantage of Nigeria’s high costs to attract cargoes originally destined for Nigerian ports.
She cited Terminal 3 at Ghana’s Tema Port — a dedicated container terminal with three berths capable of handling ships up to 366 meters in length and 16 meters draught — which processes 1.9 million TEUs annually compared to Nigeria’s 1.2 million TEUs.
Alabi expressed concern that increased charges and indirect taxes are making Nigeria’s business environment hostile to investment, with no new factories or manufacturing companies emerging while the unemployment rate continues to climb.
“We were not informed about the charges before the government implemented them,” Alabi said. “The government should make ports competitive and attractive through reduced charges. Lower charges will increase cargo throughput, generating more revenue and creating jobs for the youth.”
She also listed multiple charges from government agencies, decaying quay aprons, congested port access roads, poor road conditions, and illegal tolls as factors contributing to the high cost of doing business at Nigerian seaports.