Category: Maritime

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.

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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.

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.”

Nigeria must urgently shift from reliance on crude oil to fully utilize its extensive maritime resources if it wants to achieve sustainable growth, improve public health, and create millions of jobs, maritime experts have stated.

At the National Blue Economy Summit in Port Harcourt, stakeholders cautioned that decades of oil-dependent development have inflicted severe environmental and health damage on Nigeria.

Various speakers at the summit monitored online by The Nation held that the country continues to underutilize its most promising economic frontier—the maritime sector.

For instance, the President, Admiralty Law Society of Nigeria, Angus Chukwuka, linked the country’s rising health burdens and declining life expectancy to long-term reliance on crude oil, arguing that the blue economy offers a cleaner and more inclusive development pathway.

He described the maritime sector as largely untapped, with the potential to transform coastal communities and drive broad-based prosperity if properly developed.

Chukwuka commended President Bola Tinubu’s establishment of the Ministry of Marine and Blue Economy, describing it as a positive policy signal, but stressed that improved maritime security remains critical to attracting trade flows and large-scale private investment into the sector.

According to him, prosperity from the oceans is inseparable from safety at sea.

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He said, “If we can assess the sea, then we can assess greater prosperity. We can assess greater employment opportunities.”

“We can be more assured of food, water, and other infrastructure. We’re looking at the security aspect of it because we believe that if there is proper security, we can surely arrive at that destination.”

Delivering the lead paper at the summit, a retired naval officer, Captain George Alily, highlighted structural and operational challenges limiting the optimal use of Nigeria’s eastern ports, while pointing to recent gains in maritime surveillance and security.

He cited the deployment of the Falcon Eye system as a major milestone in safeguarding Nigeria’s waters.

“The Falcon Eye system is an integrated coastal radar system which provides real-time surveillance coverage across Nigeria’s EEZ, allowing for early detection of suspicious maritime activities and prompt naval response,” Alily said.

The surveillance infrastructure has contributed directly to Nigeria’s continued zero piracy rating by the International Maritime Bureau,” he added.

Panel discussions at the summit focused on the need for port rehabilitation, stronger inter-agency coordination, and sustained investment in maritime security infrastructure to protect Nigeria’s territorial waters and inland waterways.

Participants argued that improved connectivity between inland markets and seaports could unlock massive employment and trade opportunities.

One stakeholder underscored the economic potential of inland water transport, noting that “Onitsha Market is the largest market in Africa. And if there’s an all-year-round water, Onitsha Port will provide two million jobs, two million direct employment.”

With calls for economic diversification growing louder amid global energy transition pressures, stakeholders at the summit agreed that Nigeria must move decisively to unlock the full value of its oceans, rivers, and ports.

They said that embracing the blue economy could drive cleaner growth, improve health outcomes, create jobs, and lay the foundation for a more resilient and sustainable national economy.