OPS Advocates For Competitive Freight Rates To Boost Port Efficiency

OPS Advocates For Competitive Freight Rates To Boost Port Efficiency

Key stakeholders, including members of the organized private sector and government agencies, have converged on the need to address freight rates in Nigeria. This concern has dominated public discussions from March 3 to April 9, 2025, with significant forums held by the Federal Ministry of Industry, Trade and Investment (FMITI), the Nigeria British Chamber of Commerce (NBCC), and the Lagos Chamber of Commerce (LCCI)…READ MORE…

The consensus across these events is clear: Nigerian ports are among the least efficient and most expensive in West Africa. The National President of the Association of Nigeria Licensed Customs Agents (ANCLA), Mr. Emenike Nwokeoji, highlighted that Nigeria’s ports remain uncompetitive even at the regional level.

A World Bank report from 2023 echoed this, ranking Nigeria poorly on its Logistics Performance Index (LPI), citing inefficiencies in customs processes, inadequate infrastructure, and delays in shipments. Similarly, the World Trade Organization (WTO) reported that Nigeria’s freight costs are considerably higher than those of neighboring countries, with Nigeria’s $3,750 per 20-foot container far exceeding the $2,250 and $2,100 costs in Ghana and Kenya, respectively.

Professor Ibrahim Gerrah Umaru of Kaduna State University pointed out that Nigerian exporters face freight costs that are 30 to 40 percent higher than their counterparts in neighboring countries, attributing the inflated charges to high terminal handling fees, excessive levies, and bureaucratic inefficiencies. He also noted that the average freight cost in Nigeria has ranged from $3,000 to $4,500 per 20-foot container between 2016 and 2023, a stark contrast to the more competitive rates in Ghana and Kenya.

Umaru further stressed that Nigeria’s high freight costs result in significant economic drawbacks, such as the loss of foreign exchange and diminished global competitiveness. He recommended comprehensive port reforms, including the reduction of unnecessary charges, investment in transport infrastructure, and the implementation of a digital clearance system to streamline customs processes and reduce delays.

Several other industry leaders, including Ray Attely of the NBCC and Kingsley Igwe of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), also called for urgent reforms to enhance port competitiveness. They highlighted the critical role of modern infrastructure, efficient cargo handling systems, and transparent customs procedures in lowering operational costs.

The President of the Manufacturers Association of Nigeria (MAN) Export Group, Mrs. Odiri Erewa-Meggison, echoed the sentiment, stating that the high freight costs significantly hinder Nigeria’s ability to compete in global markets, particularly in the non-oil export sector. Similarly, NACCIMA’s Olusola Obadimu emphasized that the high logistics costs place Nigerian businesses, especially SMEs, at a disadvantage in the African Continental Free Trade Area (AfCFTA).

The Nigerian Ports Authority (NPA) also pledged to continue efforts to improve port efficiency, with Dr. Abubakar Dantsoho, NPA’s Managing Director, emphasizing that achieving competitive and efficient ports is essential for maximizing the benefits of the AfCFTA. NPA’s ongoing initiatives, including port modernization and the development of export processing terminals, aim to address the existing operational inefficiencies.

While there is recognition that significant reforms are needed to address congestion, delays, and high charges, there is optimism for the future. The Permanent Secretary of FMITI, Ambassador Nura Abba Rimi, confirmed that a framework is being developed to reduce freight costs and foster a more competitive logistics environment that will contribute to Nigeria’s economic growth and job creation.

Ultimately, the goal is to create a cost-effective and sustainable logistics ecosystem that will improve Nigeria’s trade competitiveness and position the country as a key player in the global market.