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Friday, 23 January 2026

Heavy outcry at the port as shippers reject the new shipping charges, cite threath to trade and jobs.

 


Boastnews reporting: A fresh storm is brewing around Nigeria’s seaports as cargo owners and other industry players push back hard against a recent rise in port service charges, warning that the decision could deepen the cost of doing business, fuel inflation, and weaken confidence in the country’s trade regulatory system. At the centre of the controversy is the National Shippers Association of Nigeria, a body that represents importers and exporters across the country. The association has openly rejected the newly approved charges, arguing that the process that led to the increase shut out the very people who bear the cost of such decisions. In a detailed position paper submitted to the Nigerian Shippers’ Council, NSAN accused the regulator of abandoning due process and ignoring the spirit of collaboration that underpins port regulation.


For the association, the issue goes beyond money. It is about trust, fairness, and the long term health of Nigeria’s trade environment. According to NSAN, any adjustment to port tariffs should follow broad consultations as required by law, especially at a time when businesses are already struggling with rising energy prices, foreign exchange pressures, and weak consumer demand. Industry insiders say the timing of the increase could hardly be worse. Import dependent manufacturers are grappling with high production costs, while traders are facing thin margins. Adding higher port charges to the mix, they argue, risks pushing more costs down the supply chain, eventually landing on the shoulders of ordinary Nigerians through higher prices of goods.


Boastnews gathered that, In its submission to the Shippers’ Council, NSAN made it clear that it felt sidelined. The association insists that cargo owners were not meaningfully consulted before the approval was granted, a move it describes as a serious breach of regulatory responsibility. To the group, consultation is not a courtesy but a legal and moral obligation, especially under the Nigerian Shippers’ Council Act which outlines how tariff reviews should be handled.


The association’s leadership warned that approving higher charges without broad input sends the wrong signal to the business community. Instead of reassuring investors and traders, it creates uncertainty and reinforces the fear that policies can change without warning or adequate justification. One of the strongest concerns raised by NSAN is the potential impact on landing costs for imports. Higher charges at the ports, the group argued, will inevitably translate into higher costs for clearing goods. These additional expenses, when combined with existing challenges, could worsen inflationary pressure and reduce the competitiveness of Nigerian businesses.


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Beyond the cost implications, the association also questioned what shippers are getting in return. According to NSAN, port efficiency and service delivery have not improved enough to justify a tariff increase of this scale. Persistent issues such as congestion, delays, and infrastructural bottlenecks remain unresolved. From the perspective of cargo owners, paying more without seeing measurable improvements feels unfair and unjustified. As a way forward, the association called on the Nigerian Shippers’ Council to immediately halt the implementation of the new charges. It also proposed that within two weeks, the council should convene an inclusive meeting involving all stakeholders to agree on a transparent and credible framework for future tariff reviews. Such a process, NSAN believes, would restore confidence and ensure that any future adjustments are based on clear data, performance benchmarks, and collective agreement.


Speaking on behalf of the association, its Acting National President, Alhaji Jamilu Goma, appealed to the council to uphold the values embedded in its founding law. He expressed hope that the regulator would demonstrate fairness and integrity by listening to the concerns of cargo owners and taking corrective steps. The association did not limit its objections to the Shippers’ Council alone. Copies of its position were also forwarded to key government and private sector institutions, including the Minister of Marine and Blue Economy, members of the National Assembly, and influential business groups such as the Manufacturers Association of Nigeria, the Nigerian Association of Chambers of Commerce Industry Mines and Agriculture, and the Nigeria Employers’ Consultative Association. This wider engagement reflects the belief that the issue affects the entire economy, not just port users. 


The resistance to the tariff hike has also been echoed by other voices within the maritime and logistics space. The Chairman of the Board of Trustees of NSAN, Ali Madugu, described the move by shipping lines to raise their tariffs by nearly 60 percent as arbitrary and dismissive of industry realities. Speaking to journalists after a stakeholders’ meeting in Lagos, he said the decision appeared to have been taken without regard for the interests of cargo owners or other players in the sector.


Madugu stressed that cargo owners are the backbone of the shipping business. Without them, there would be no cargo to move and no revenue for shipping lines. From his perspective, it is only logical and fair that those who generate business for the industry should be part of discussions that affect pricing and charges. He questioned how such a significant increase could be approved without a clear explanation of the methodology used. In his view, a regulator should not only approve figures but also be able to clearly explain the basis for them, especially when the consequences affect thousands of businesses nationwide.


The controversy has also revived memories of earlier directives from the Nigerian Shippers’ Council, which had previously instructed shipping companies, agents, and terminal operators to suspend any changes to their charges until proper consultations were carried out. That earlier stance was widely welcomed by stakeholders as a sign that the regulator was serious about protecting users of the ports. However, the recent approval has left many confused. While the council has maintained that it acted within its legal authority as the port economic regulator, critics argue that authority must be exercised with transparency and inclusion.


In a statement issued by its Head of Public Relations, Rebecca Adamu, the Shippers’ Council defended the process, saying the adjustments were approved strictly in line with its statutory mandate. The council insisted that tariff reviews follow a structured and well defined process aimed at balancing the interests of service providers and port users.


At the same time, the council reiterated its warning to shipping companies and terminal operators, directing them to suspend any intended review of charges until they had fully engaged with stakeholders. It also cautioned that any service provider found disrupting port operations would face sanctions.


For many stakeholders, this mixed messaging has only added to the tension. On one hand, there is an approval of higher charges. On the other, there is a call for suspension and consultation. Industry players say clarity is urgently needed to prevent further confusion and unrest at the ports. Customs agents have also added their voices to the growing opposition. The Western Zone Coordinator of the Association of Nigerian Licensed Customs Agents, Femi Anifowose, said many stakeholders were taken by surprise by the decision. According to him, no operator should wake up one morning and announce new charges without first sitting down with those who will pay them. He argued that issuing a letter approving such increases without stakeholder input undermines trust in the regulatory system. Anifowose noted that manufacturers, freight forwarders, and other port users have all rejected the increase, calling instead for open dialogue and negotiation. From his perspective, meaningful engagement remains the only way forward. He said discussions are still ongoing and urged all parties to return to the table to find a solution that reflects the realities of the industry.


The Secretary General of NSAN, Ijeoma Ezeasor, reinforced this position, stating that the association has consistently communicated its rejection of the charges to both regulators and operators. She emphasized that the opposition is not limited to one group but cuts across the entire maritime value chain. According to her, cargo owners, freight forwarders, and other stakeholders are united in their view that the charges are unacceptable. She warned that if the decision is not reversed, stakeholders would continue to engage the public and press their case through legitimate channels. The unfolding dispute highlights deeper structural issues within Nigeria’s port system. While service providers argue that rising operational costs justify higher charges, port users insist that efficiency, transparency, and accountability must come first. Without visible improvements in service delivery, any increase in fees is likely to be met with resistance.


As the debate continues, many observers see this moment as a test of Nigeria’s commitment to its Ease of Doing Business agenda. How the authorities respond could either reassure investors and traders or deepen skepticism about the predictability of the business environment. The  cargo owners and their allies are standing their ground, calling for dialogue, fairness, and respect for due process. Whether their concerns will lead to a reversal or a renegotiation of the charges remains to be seen, but one thing is clear. Decisions taken at the ports ripple far beyond the waterfront, touching factories, markets, and households across the country.

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