There is growing tension at the nation’s seaports as the organized private sector and freight forwarders have expressed concern over recent announcement by shipping giant, CMA CGM, to increase its local charges on Nigeria bound consignments.
The increment is coming at a time the Nigerian Ports Authority (NPA) announced a 15 percent hike in port charges.
The organized private sector says the new increment would impact negatively competitiveness of the nation’s seaports in the global market.
Local charges (abbreviated as LCC) are local fees incurred during the transportation of goods, usually related to services at ports or airports. These fees are usually not included in the main freight rate and will be charged separately to the customer.
CMA CGM, at the weekend, in a mail to Importers announced the review of it’s local charges.
It said it followed the recent increase in Port and Marine charges by the Nigerian Ports Authority (NPA), which came into effect on the 1st of March 2025.
CMA CGM said: “As a result of such adjustment, we find it necessary to update our tariff structure to account for the new cost environment, effective 10 March 2025.
“Under the review, a 20ft container will now be charged N145,327 while a 40ft container will attract N290,654. A 20ft Reefer container will attract N145,327 while a 40ft Reefer container will attract N290,654” it stated.
Reacting to both adjustments, the Sea Empowerment Research Center (SEREC) stated that the fresh hike will impact negatively on the competitiveness of Nigeria’s seaports.
SEREC in a statement, signed by its founder, Dr. Eugene Nweke, expressed deep concerned about the recent announcement by CMA CGM Nigeria to increase local charges, which according to him, is largely influenced by the Nigeria Port Authority’s (NPA) adjustments to Port & Marine Fees.
Nweke who is also a former National President of National Association of Government Approved Freight Forwarders (NAGAFF), while given a background stated that the nation’s ports situation is alarming, and that it caused by the delayed implementation of the $700 million rehabilitation budget which he noted had exacerbating concerns.
He stated that SEREC has emphasized the need for a transparent project management system and a definitive rehabilitation project vision.
Some of the key Recommendations made by SEREC, according to him, include the commencement of the implementation of the approved rehabilitation budget to address pressing concerns such as congestion, poor berth production, and ship turnaround time.
To also establish a transparent project management system, including a project monitoring team, regular progress updates, and clear communication with stakeholders.
To Identify and prioritize critical infrastructure needing rehabilitation, such as quay walls, cranes, and handling equipment, while also having constant engage with stakeholders, including port operators, shipping lines, cargo owners, and industry players, to address concerns and needs.
It also recommend that NPA should address underlying issues, which includes inadequate maintenance, insufficient investment, inefficient port operations, corruption, and bureaucratic inefficiencies.
“The NPA must effectively explore outsourcing key port terminal development to a reputable third party. The recent 15% increase in charges without reconciling economic, commercial, and operational implications is alarming, considering the agency’s history of mismanaging proceeds from cargo handling and treatments, which the government indicated the agency of, leading to the decision to concession the port since 2006.
SEREC while outlining some of the far-reaching consequences which the increased charges may lead to revealed that it will bring about higher costs for importers and exporters, and that it will potentially impact Nigeria’s competitiveness in the global market.
It stated that trade and commerce will be disruptions, as importers and exporters may decide to seek alternative routes or shipping lines.
“It will bring about regulatory disputes due to NPA’s failure to obtain regulatory clearance from the Nigerian Shippers Council. Most importantly, to demonstrate administrative transparency, bearing in mind that the ports are public enterprise, as such the NPA must be bold to publish efficiency status of the concessioned ports post port concession, thus demonstrating its good intentions with the 15% port charges increment.
“Wherefore, it is the views of SEREC that, to mitigate these concerns, the industry economic regulator (NSC) and the NPA must engage with stakeholders, provide transparency, and prioritize stakeholders’ interests. Collaboration between the Ministry, NSC, and NPA is crucial to create a more efficient, competitive, and sustainable maritime industry in Nigeria” hd added.
