Centre laments high cost of cargo clearance at Nigerian ports

The Sea Empowerment Research Centre has lamented that the cost of cargo clearance at Nigerian ports are very high when compared to what obtains in neighbouring ports of Ghana, Togo, Benin Republic and Cote d’Ivoire.

In its 2024 Third Quarterly Bulleting signed by its Head of Research, Dr Eugene Nweke, a copy made available to the Nigerian Tribune, the Centre said that these costs can make Nigerian ports less competitive and may discourage investors and shippers from using them.

According to the Centre, “Estimates suggest that the total costs of cargo clearance from ports in Nigeria are significantly higher compared to other West African ports. Here’s a rough breakdown:

“Nigeria: Clearance costs: $1,500 – $3,000 per TEU (Twenty-Foot Equivalent Unit); Demurrage and storage: $500 – $1,000 per TEU; Transportation and logistics: $500 – $1,000 per TEU; Total: $2,500 – $5,000 per TEU

“Ghana: Clearance costs: $500 – $1,000 per TEU; Demurrage and storage: $200 – $500 per TEU; Transportation and logistics: $300 – $600 per TEU; Total: $1,000 – $2,100 per TEU

“Côte d’Ivoire: Clearance costs: $400 – $800 per TEU; Demurrage and storage: $150 – $300 per TEU; Transportation and logistics: $250 – $500 per TEU; Total: $800 – $1,600 per TEU

“Benin: Clearance costs: $300 – $600 per TEU; Demurrage and storage: $100 – $200 per TEU; Transportation and logistics: $200 – $400 per TEU; Total: $600 – $1,200 per TEU.”

The Centre also highlighted factors that promotes high cargo clearance at Nigerian ports.

“Note that these estimates may vary depending on factors like cargo type, volume, and shipping lines. However, they give an indication of the relatively high costs associated with cargo clearance in Nigerian ports compared to other West African ports.

“The high costs in Nigeria are largely due to:Higher clearance costs and fees; Longer dwell times, leading to increased demurrage and storage costs; Inefficient transportation and logistics systems; and Corruption and unofficial payments.

“These costs can make Nigerian ports less competitive and may discourage investors and shippers from using them.”

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